The approaching September raises concerns in the crypto community, as historical data points to this month being particularly challenging for Bitcoin. This article highlights the main factors and risks associated with the upcoming period.
Challenges for Cryptocurrencies in September
Historically, September has been one of the most challenging months for Bitcoin. Over the past 12 years, Bitcoin has on average depreciated by 3.77% during this month. Unlike the more prosperous months of November and October, September brings significant difficulties. Lark Davis emphasizes that although historical data does not guarantee a repeat of past performance, certain patterns are often observed in the world of cryptocurrencies.
Risks in the Crypto Sphere
The next 30-60 days may bring numerous potential risks to the crypto industry. Some of these could trigger market downturns individually or simultaneously. These factors include: - The politicization of the Fed's actions, which may negatively affect the global economy. - Legal disputes between Cook and Trump may exacerbate economic impacts. - Secondary sanctions may be imposed if Trump does not get the anticipated support from Putin. - New employment and inflation figures could reignite tensions within the Fed. - September will be crucial for discussions with China amidst rising tensions. - Trump may announce new digital taxes and sanctions against the EU.
Conclusion
September opens a challenging period for the cryptocurrency market, with many factors, both historical and external, playing a significant role in shaping Bitcoin's price dynamics. The anticipated rise in Bitcoin dominance is set against potential risks related to political instability.
Current market conditions coupled with historical data underline the significance of September as a critical month for Bitcoin. Investors and market participants need to closely monitor events in the economic and political spheres.
