Here’s Why September is Historically The Worst Month for Bitcoin

Bitcoin investors should prepare for a “seasonal slog” in September, which has historically been the worst month for average returns, according to New York Digital Investment Group (NYDIG).

Greg Cipolaro, NYDIG’s global head of research, mentioned that there are currently few near-term catalysts for Bitcoin. He noted that potential drivers for Bitcoin’s price are primarily linked to macroeconomic factors such as inflation, unemployment, GDP growth, and monetary policy decisions by the Federal Open Market Committee, rather than specific crypto or Bitcoin developments.

Bitcoin has seen a slight increase of over 3% in the past 24 hours, partly due to strong performances in the S&P 500 and the Nasdaq, which both gained 1.16% on September 9.

Historically, September has been the worst month for Bitcoin, with an average monthly loss of 5.9% since 2011. In contrast, the fourth quarter of the year, particularly October and November, has typically been stronger for Bitcoin, with average gains of 16.1% and 40.6%, respectively.

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Cipolaro also highlighted the upcoming U.S. presidential election in November as a significant concern for the crypto market. While former President Donald Trump is known for his crypto-friendly stance, Vice President Kamala Harris’s position on digital assets is less clear. This uncertainty could lead to increased volatility in the meantime. He suggested that Bitcoin might be influenced by broader market conditions until then.

Kosta Gushterov