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Bitcoin Investors Brace for Tough Fall — NYDIG Analysis

Sep 10, 2024
  1. Seasonal Changes in Bitcoin Value
  2. Macroeconomic Catalysts
  3. Political Uncertainty and Upcoming Elections

Bitcoin investors should prepare for a seasonal slump in September, according to the analytics platform NYDIG. September has historically been the worst month for Bitcoin's average returns.

Seasonal Changes in Bitcoin Value

NYDIG reports that September is the most challenging month for Bitcoin value, based on historical data. The average monthly loss is 5.9% over the past 13 years. In comparison, the fourth quarter often shows better results, with October and November delivering average gains of 16.1% and 40.6%, respectively.

Macroeconomic Catalysts

"Unfortunately, near-term catalysts for Bitcoin are sparse," noted NYDIG’s global head of research, Greg Cipolaro, in a market update. The main focus will be on macroeconomic data such as inflation, unemployment, and GDP growth, as well as monetary decisions like FOMC interest rate decisions.

Political Uncertainty and Upcoming Elections

The most significant factor causing uncertainty for the crypto market will be the upcoming US presidential election in November. Former President Donald Trump is known for his crypto-friendly stance, while Vice President Kamala Harris' position on digital assets remains less clear. This may lead to increased uncertainty and volatility in the market.

In the coming months, Bitcoin may remain influenced by the broader market backdrop until the fate of the upcoming US elections is determined.

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