Momentarily, the state of the cryptocurrency market is stagnating, leaving investors confused about what their next move should be. Bitcoin fell from its peak of a little over $3.000 registered approximately two weeks ago by around 18%, recording abrupt rises and declines over the same period. The whole market is currently in a pivotal demand area, paving the way for a potential price recovery, which might see Bitcoin soar past its peak of $3K this month, as many analysts predict.
The market is prepared to bounce back this month, though, as more experts suggest. The most frequently used website for price tracking, CoinMarketCap, indicates that the current crypto capitalization value is $1.06 trillion. Having surpassed the psychological threshold of $1 trillion may suggest that the market is ready to witness a revival. And even if this isn’t the month for the flagship crypto to gain more following and adoption, it’s likely in the right spot to secure some victories in the coming weeks.
At the moment, however, there is a divergence of expectations and viewpoints regarding Bitcoin’s performance. Investors are pondering whether they should buy Bitcoin with debit card, since the future’s uncertain and the asset is navigating hazy waters at the moment.
Let’s delve into the expert predictions for the leading cryptocurrency and its future trajectory, as well as analyze its past September performances to gain a clearer picture of where it’s situated.
Historically speaking, Septembers weren’t generally kind to Bitcoin
Historical data reveals that Bitcoin has often faced challenges during September. Past performance charts show that along the way, the top-performing cryptocurrency only registered positive returns twice in this month in the past decade. Last year, the asset slipped by 3.1% in price, closing the month at around $19,431. However, by the middle of the month, it surpassed its $2.000 psychological mark to reach a little over $22,000.
The Federal Reserve’s month-to-month rising interest rates served as a background to the price fluctuations; the U.S. dollar surged, and stocks were quickly dumped as people expected another series of interest hikes. All of these adverse trends prompted investors to sell risky assets like cryptocurrencies.
But instead of going downhill after that, Bitcoin managed to hold its value and even experienced a slight increase. It closed the subsequent month, October, at just over $20.000, indicating that demand for the dominant cryptocurrency continued to exist.
For now, Bitcoin is swimming in hazy waters
As for the present moment, the leading cryptocurrency hovers under the $26,000 mark, having surpassed this limit three days ago from the moment of writing. It increased to two-week highs after the U.S. court ruled 3-0 in favor of Grayscale, stating that the application for spot Bitcoin ETFs was denied on unjustified grounds. The price of Bitcoin managed to scale at around $27,910, up by approximately 7%, as Bitcoin Futures ETFs were approved, in spite of spot Bitcoin ETFs denial. Ethereum also witnessed spikes in prices and grew by around 5%, hitting $1,730. According to District of Columbia judges, the rejection wasn’t made on solid grounds as the regulator failed to explain the preferential treatment for Bitcoin futures ETFs.
Many experts believe that the new Bitcoin futures ETFs approval and the waiting time until a new resolution is concluded may support Bitcoin prices and promote the recognition of digital coins as a new asset class globally.
Given past market trends in September, it is clear that exercising due diligence and being cautious while investing are the best ways to safeguard your holdings from losses. Historical patterns provide valuable insights, but besides them, it’s important to pay attention to the highly volatile nature of the cryptocurrency market.
Analysts place large bets on October
While past September performance shows that Bitcoin is usually on a bumpy ride in the first month of autumn, looking past its current trajectory and into the following month can prove helpful in investing or staying away from BTC additions. Several analysts encourage aspiring investors to turn their focus to October, as the month may cook up new surprises in the oven.
Based on historical analysis, the primary cryptocurrency has recorded negative monthly returns during the final days of September on nine occasions out of its last 13 years of existence. Besides past evidence, a number of other factors have the power to influence the price trajectory of Bitcoin this month, such as the postponement of Bitcoin ETF decisions.
This month, several new altcoins and Bitcoins are expected to be released into the market. This influx stems from the holdings of the no-longer-functional FTX company, as per the requirements of U.S. authorities. Furthermore, we can also expect several token unlocks from projects, including Optimism, dYdX, Aptos, and Apecoin.
However, starting in October, tension and excitement will build up in anticipation of the new SEC decision regarding spot Bitcoin ETFs. This is the regulatory body’s second decision, and most investors are optimistic about the new resolution. According to representatives at Bloomberg, the chances of approval of a spot Bitcoin ETF by the conclusion of 2023 revolve around 75%. At least for the current year, the middle of October represents the last deadline for the regulator to come up with a decision.
As one can observe, this month is set to be anything but dull and uneventful. The upcoming events demand careful preparation and a vigilant eye on market developments and events.
Wrapping up
Based on past evidence, September has been challenging for the reigning digital coin for the past few years, and 2023 may not make an exception. For this reason, if you’ve already dedicated a fraction of your investment portfolio to Bitcoin, keeping a long-term strategy might be the best solution to navigate the restless waters this month and safeguard it from losses.
On the other hand, the sluggish prices mean that you can also buy the dip if you believe in experts’ predictions that starting in the middle of October, the cryptocurrency market may experience a revival.
Whatever your investment strategy and goal are, ensure you’re thoroughly pondering what you’re pouring your money into and that you’re ready to face the volatility in the cryptocurrency realm.