September has historically been a tough month for U.S. stocks. And when it comes to BTC, the so-called “September effect” may be just as prevalent — and BTC’s price action this first week supports that theory. Amid disappointing U.S. labor market data, the S&P 500 shed $2.2 trillion in market cap in the first week of September. To put that into perspective, that’s more than the entire crypto market cap!
According to the US Bureau of Labor Statistics (BLS), 142,000 jobs were created in August. This number is significantly lower than analysts' expectations of 160,000. Macroeconomics is now more than ever affecting risky assets, if the SP500 falls, Bitcoin will fall too.
BTC dropped to $52,500 overnight, and is now trading above $54,500. On Wednesday, I warned that if we fall below $55,500, panic selling could intensify, which is what happened. Now, focus on the next support level at $52,000, if the support holds, this could be a great opportunity to buy. If we break through it, we will fall further.
Let me remind you that the outcome will take place on September 18 at the Fed meeting, where the key rate should be lowered. Fear reigns in the market now. Historically, periods of fear and panic selling often open up profitable buying opportunities. Let's not forget that October is ahead, where the average yield has historically been the highest.
