Bitcoin enters September trading close to $107,000, yet historical patterns indicate it might not perform well. Historically, the month has seen the average drop of 6% over the last 12 years.
What to know:
- Bitcoin is currently priced near $107,000, but September has historically been a weak month, with median declines around 5%.
- Major losses: DOGE has dropped 4.5% in the last 24 hours ahead of the Labor Day holiday in the U.S.
- Concerns are raised as MicroStrategy’s premium over Bitcoin declines, signaling market uncertainty about corporate crypto treasury strategies.
“MicroStrategy’s recent struggle to maintain its Bitcoin premium reflects broader market shifts, questioning the sustainability of corporate treasury models focused solely on crypto accumulation.” - Nick Ruck, Director at LVRG Research
As we continue into September, with the potential for Fed rate cuts, there might be a possibility to cushion the seasonal weaknesses, but outflows from ETFs could aggravate the situation. Meanwhile, Ether has dropped by 1.7% to $4,390 and Solana decreased 3.4% to $197.6.
Despite the potential challenges, understanding seasonal trends can guide trader strategies, with September historically regarded as a time for reconsidering investment approaches.
