• Bitcoin’s historical performance in September has typically been bearish, recent price drops have caused fear and uncertainty.
• Growing narrative suggests that BlackRock is behind Bitcoin’s price weakness.
• Trader “Daan Crypto Trades” tweeted that the last six consecutive Septembers saw losses for Bitcoin, though October is historically BTC’s best-performing month.
Overview
Bitcoin’s price has been a cause for concern within the crypto market lately, as August draws to a close amidst tightening macroeconomic conditions and ongoing uncertainty of further painful movements looming large. Historically, BTC has performed poorly during September, while some are suggesting that giant asset manager BlackRock may be behind the recent price drops.
Historical Performance
Trader “Daan Crypto Trades” told his near 350k followers that the last six consecutive Septembers played host to overall losses for Bitcoin. Analysis of the chart accompanying his tweet showed that since 2013, just two years out of the last ten saw gains in September, while the remaining eight suffered monthly losses of between -1.76% and -19.01%. On a more positive note, Daan Crypto Trades underlined that the following month, October, is historically BTC’s best-performing month.
BlackRock Theory
BlackRock’s application for a spot Bitcoin ETF in June proved to be a boon for industry in the week that followed; however three months on some are wondering if it may be behind the recent price drops. YouTuber Crypto Rover theorized that BlackRock may be deliberately driving down prices to acquire coins on the cheap in readiness for when their ETF goes live.
Sentiment
The recent Bitcoin flash crash saw the Crypto Fear & Greed Index sink to a reading of 37 indicating fearful sentiment within markets. This indicates widespread fear and uncertainty about what will happen with bitcoin’s price going forward into September and beyond due to its poor performance historically during this time period.
Conclusion
It remains unclear whether or not major asset manager Blackrock is behind Bitcoin’s current market situation but one thing is certain; bitcoin holders should brace themselves for any potential drawdowns ahead as September approaches due to its traditionally bad performance during this time period.