August is drawing to a close with just four days left, and Bitcoin has fallen 2.74% this month, leaving market watchers eager to see if September will bring better news. History has not been kind to Bitcoin in September; over the past 11 years, it has ended the month on a downtrend 72.73% of the time.
Bitcoin Faces Tough Historical Trend as September Approaches
September is just around the corner — it starts in less than a week — and Bitcoin (BTC) is currently down 2.74% as of August 27, 2024. August is typically a quiet month for BTC, so this decline isn’t unusual. But if history is any indication, September may not bring much relief either, as Bitcoin has closed the month in the red eight times in the last 11 years.
Even during the bullish periods of 2013, 2017, and 2021, September was tough for Bitcoin. The toughest was September 2014, when BTC fell by 19.01%. However, there is a chance that this September could reverse the trend. One reason for optimism is the upcoming US elections, which are just around the corner.
The 2024 election has been woven into the Bitcoin bull market cycle this year, with many speculating that the outcome could impact the price of BTC, for better or worse. Another potential catalyst for a price rebound in September is the possibility of a Federal Reserve rate cut during the Federal Open Market Committee (FOMC) meeting later that month.
A rate cut could boost BTC prices, depending on whether it’s a 25 basis point (bp) or 50 bp cut. October has traditionally been a strong month for Bitcoin, with prices rising in nine of the last 11 years. October has rewarded traders handsomely, with gains of 60.79% in 2013, 47.81% in 2017, and 39.93% so far in 2021.
While past trends suggest that September could be a tough month for Bitcoin, the dynamics of 2024, with factors such as the upcoming U.S. elections and potential Federal Reserve rate cuts, could lead to unexpected results. Market participants will likely remain vigilant as historical patterns will not necessarily dictate Bitcoin’s price trajectory in the coming weeks.
