Bitcoin Price Approaches $57.5K, Extending Weekly Decline by 10% as September Begins
Bitcoin’s price increased by 0.5% to approximately $58,300, while other cryptocurrencies such as dogecoin and toncoin experienced losses of up to 3% during the Labor Day holiday in the U.S. Analysts have pointed out a historical bearish trend for September, noting that bitcoin typically sees an average monthly decline of 6%.
After dropping close to $57,500 on Monday, Bitcoin, the world’s largest cryptocurrency, rebounded to around $58,300. However, it remains down by 8.6% over the past week. In the last 24 hours, BTC rose by 0.5%, while other major cryptocurrencies like xrp, Cardano’s ADA, and dogecoin fell by as much as 3%. The CoinDesk 20 Index, which tracks the largest tokens, saw a 0.45% increase during the same period.
Exchange-traded funds (ETFs) in the U.S. that track BTC experienced total net outflows of $175 million on Friday, marking the fourth consecutive day of losses. On the other hand, Ether ETFs saw no net inflows or outflows despite a trading volume of $173 million, as reported by data from SoSoValue. With traditional markets closed in the U.S. due to the Labor Day holiday, market activity was impacted.
Some traders have highlighted that the initial decline in BTC’s value aligns with the typical bearish trend observed in September. However, they mentioned that potential interest rate cuts by the U.S. Federal Reserve could potentially disrupt this pattern. According to Innokenty Isers, the founder of crypto exchange Paybis, historical data shows that September tends to be a negative month for Bitcoin, with an average value decrease of 6.56%. Isers suggested that if the Federal Reserve implements interest rate cuts in September, it could alter Bitcoin’s negative historical performance by increasing the flow of US dollars in the economy, thereby strengthening Bitcoin’s position as a store of value.
Seasonality plays a significant role in the crypto market, with assets experiencing regular and predictable changes throughout the year. These changes can be influenced by various factors, from profit-taking during tax season to bullish rallies in December. Isers emphasized that macroeconomic indicators, the adoption of spot Bitcoin ETFs, and a favorable hashrate could potentially make September a comparatively better month for BTC in the current quarter.
