September’s Historical Performance
Bitcoin usually struggles in September. It drops an average of 6.56% in value. This trend makes cryptocurrency investors careful.
“September is a historically negative month for Bitcoin, as data shows it has an average value depletion rate of 6.56%. Thus far this month, the investor sentiment around Bitcoin has been negative as the coin has traded between $49,000 and $66,000,” Innokenty Isers, Founder and CEO at Paybis, told BeInCrypto.
BTC’s price is under $60,000. It fell 7.5% last week. Market swings and rule changes are partly to blame.
Factors Influencing Price
Despite negative outlooks, big financial changes could help BTC. Innokenty Isers, Paybis CEO, told BeInCrypto:
“Should the Feds cut the interest rate in September, it might help Bitcoin re-write its negative history. This is because rate cuts generally lead to excessive US Dollar flow in the economy. This reduces the Dollar’s purchasing power, further strengthening the outlook of Bitcoin as a store of value. Many institutional investors are already proving this point with massive Bitcoin accumulations. If the Fed’s policies weaken the dollar, switching to risk assets with higher growth potential might be inevitable”.
A rate cut could increase US Dollar flow. This might make Bitcoin more valuable. It could lead to more big investors buying cryptocurrency.
Investor Sentiment Indicators
The MVRV Ratio shows how investors feel. Bitcoin’s 90-day MVRV is at -4.8%. This situation suggests people might buy more.
In the past, when Bitcoin’s MVRV was between -2% and -12%, prices often went up. During these times, people tend to buy more BTC.
Potential Price Scenarios
There are two main Bitcoin price predictions. First, BTC might stay under $68,300. It’s had trouble going above this price before.
Or, Bitcoin could go above $68,300. This might lead to a 22% price jump. It could even set a new record above $73,800. But this depends on buying trends and possible rate cuts.
