September Woes: Will Bitcoin Holders Suffer a Price Drop?
• Bitcoin’s historical performance in September has typically been bearish.
• Recent price drops have intensified fear and uncertainty.
• Some believe BlackRock is behind Bitcoin’s price weakness.
Historical Performance of Bitcoin in September
The recent Bitcoin flash crash saw the Crypto Fear & Greed Index sink to a reading of 37, indicating fearful sentiment within the markets. Trader “Daan Crypto Trades” revealed that the last six consecutive Septembers played host to overall losses for Bitcoin, with only two years out of the last 10 showing gains in September. Despite this, there is still hope as October is historically BTC’s best-performing month.
Speculation Regarding BlackRock’s Influence
Following BlackRock’s application for a spot Bitcoin ETF in June, some are speculating whether or not the world’s largest asset manager is behind the recent price drops. YouTuber Crypto Rover theorized that the firm may be deliberately driving down prices to acquire coins on the cheap in readiness for the ETF going live.
Growing Fear and Uncertainty
The tumbling Bitcoin price, which fell to a 10-week low in August, has caused concern among crypto traders and investors alike. With August drawing to a close amidst tightening macroeconomic conditions and ongoing uncertainty, there is fear of further drawdowns ahead due to BTC’s historically poor September performance.
Many overlook that BlackRock requires actual #Bitcoin to back their Spot ETF if it goes live one day; meaning they might have already secured their bitcoin when prices were lower or may be deliberately driving prices down before entering into the market again.