Breaking the Trend: 5 Reasons Why Bitcoin May Defy History in September Historically, Bitcoin has struggled to perform well in September, with an average profitability of -6.18% and a median of only -4.43 per 1000 transactions. However, according to experts at Spot On Chain, this year could be different. One key factor is the recent …
Defying History: 5 Reasons Why Bitcoin May Thrive in September
Breaking the Trend: 5 Reasons Why Bitcoin May Defy History in September
Historically, Bitcoin has struggled to perform well in September, with an average profitability of -6.18% and a median of only -4.43 per 1000 transactions. However, according to experts at Spot On Chain, this year could be different.
One key factor is the recent decrease in selling pressure from key players. In July and August, over 170,000 BTC were sold by the German government, Mt. Gox, and Genesis Trading. However, in recent weeks, these sales have slowed down, resulting in less selling pressure on the market.
Another important factor is the role of long-term holders, who have added a staggering 262,000 BTC to their positions in August, now accounting for 75% of the total supply. This rise in holdings suggests that there is no need to sell immediately, providing stability to the market.
Top anonymous wallets have also remained silent, reducing the risk of sudden market drops and potentially causing market volatility. Despite the lack of activity, these prominent investors seem confident about not losing money in the near future.
Additionally, the potential for new investment in Bitcoin ETFs could result in higher demand and drive up the value of Bitcoin.
Furthermore, there may be some external factors that could help reverse the trend towards a recovery in September. Bitcoin’s demand may be driving up as investors seek alternative assets, owing to the possibility of the Federal Reserve cutting interest rates. Additionally, the FTX repaying $16 billion in cash could also boost demand for the cryptocurrency. The political support for favorable cryptocurrency regulations in the U.S. could increase investor confidence.
As legislators acknowledge the potential advantages of cryptocurrencies, the regulatory landscape may become more conducive to investment and adoption. While September has traditionally been a challenging time for Bitcoin, recent events suggest that this year could be even better with reduced selling pressure, increased holding power, and the possibility of new investment.
Want to learn more about Bitcoin’s market trends and potential for growth? Check out this in-depth article on CoinSeeks.com: Bitcoin Price Prediction 2023: Will it Reach $100,000?
As the market evolves, it will be important to keep track of these factors and see if they can actually deviate from the historical trend. With reduced selling pressure, increased holding power, and the possibility of new investment, Bitcoin may potentially make history by turning back this trend again in the coming months.
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