Bitcoin (BTC) September Move Foreshadowed by This Historical Trend

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Fri, 09/01/2023 - 11:32
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Bitcoin, the largest cryptocurrency by market capitalization, appears to be starting the new month of September in the red, with losses in the initial trading hours on Sept. 1. BTC was down 4.60% in the last 24 hours to $25,998 at the time of writing.

The majority of cryptocurrencies are also trading in losses on September's opening day, with some losing up to 7%. According to Coinglass data, the total value of crypto liquidations in the last 24 hours is $129 million.

Bitcoin's price action at the start of September is not entirely surprising. Crypto analyst Will Clemente pointed out that September has had the fewest positive-returning months, with only two, and is on a six-year negative-return streak.

According to Bitcoin's monthly returns chart, BTC has had six "negative Septembers" in a row since 2016. Within these six years, 2019 witnessed the greatest loss of 13.47%, while 2022 losses were relatively lower at 3.12%.

However, historical precedent may not predict current outcomes because the crypto market never fails to surprise. Being the start of  September, it may be difficult to gauge Bitcoin's price action based on a one-day performance.

Bitcoin may choose to break the bearish trend this September and close in the green for the first time in six years. Thus, traders should keep an eye out for favorable fundamental boosts to appraise Bitcoin's price movement.

No news expected for Bitcoin ETF in September

The U.S. Securities and Exchange Commission delayed a decision on whether to approve the first U.S. exchange-traded fund that invests directly in Bitcoin once more, upsetting supporters just days after the historic Grayscale victory.

Grayscale Investments gained a crucial victory against the SEC on Tuesday when a federal appeals court overruled the SEC's rejection of Grayscale's application to convert its Bitcoin trust into an ETF.

According to Bloomberg, the SEC deferred disclosures from Bitwise, VanEck, Invesco, Valkyrie and BlackRock on Thursday.

Related
Bitcoin (BTC) Price Pump Potential Outlined by Bloomberg Strategist

Bloomberg analyst James Seyffart, who frequently gives updates on Bitcoin spot ETFs, suggested that the next key days to keep tabs on would be the middle of October, especially Oct. 16. This is crucial since news of Bitcoin ETFs has potentially impacted BTC prices in recent months.