Bitcoin’s September Slump: Will It Bounce Back?

Bitcoin faces a tough September, and investors are worried. Past trends show the Bitcoin price predictions often turning negative this month. This raises questions about recovery, but let’s see if the September slump holds. Will the crypto bounce back?

Navigating Bitcoin’s September Slump: Cryptocurrency Trends and Price Predictions

Bitcoin
Source – SkyNews

September’s Historical Performance

Bitcoin usually struggles in September. It drops an average of 6.56% in value. This trend makes cryptocurrency investors careful.

“September is a historically negative month for Bitcoin, as data shows it has an average value depletion rate of 6.56%. Thus far this month, the investor sentiment around Bitcoin has been negative as the coin has traded between $49,000 and $66,000,” Innokenty Isers, Founder and CEO at Paybis, told BeInCrypto.

Also Read: BRICS Bank President Says Ditching the US Dollar is a ‘Main Focus’

Current Market Conditions

Bitcoin price prediction BTC cryptocurrency

BTC’s price is under $60,000. It fell 7.5% last week. Market swings and rule changes are partly to blame.

Factors Influencing Price

Despite negative outlooks, big financial changes could help BTC. Innokenty Isers, Paybis CEO, told BeInCrypto:

“Should the Feds cut the interest rate in September, it might help Bitcoin re-write its negative history. This is because rate cuts generally lead to excessive US Dollar flow in the economy. This reduces the Dollar’s purchasing power, further strengthening the outlook of Bitcoin as a store of value. Many institutional investors are already proving this point with massive Bitcoin accumulations. If the Fed’s policies weaken the dollar, switching to risk assets with higher growth potential might be inevitable”.

Also Read: BRICS: Chinese Yuan Beats Euro To Become the Second Most Used Currency

A rate cut could increase US Dollar flow. This might make Bitcoin more valuable. It could lead to more big investors buying cryptocurrency.

Investor Sentiment Indicators

The MVRV Ratio shows how investors feel. Bitcoin’s 90-day MVRV is at -4.8%. This situation suggests people might buy more.

In the past, when Bitcoin’s MVRV was between -2% and -12%, prices often went up. During these times, people tend to buy more BTC.

Potential Price Scenarios

There are two main Bitcoin price predictions. First, BTC might stay under $68,300. It’s had trouble going above this price before.

Also Read: Shiba Inu Whale Pockets 1 Trillion SHIB, Whale Activity Surges

Or, Bitcoin could go above $68,300. This might lead to a 22% price jump. It could even set a new record above $73,800. But this depends on buying trends and possible rate cuts.

As September goes on, people are watching BTC closely. History suggests being careful. But changing money conditions could help the cryptocurrency market grow.

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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