'Red September' Is Coming—Here's What to Expect From the Bitcoin Market
Bitcoin is currently trading sideways as traders brace for "Red September," a historically negative month for markets. The S&P 500 has averaged negative returns in September since 1928, while Bitcoin has dropped an average of 3.77% each September since 2013. Factors contributing to this trend include mutual funds closing fiscal years, increased market activity post-summer, and the Federal Open Market Committee's September meeting creating uncertainty. Bitcoin's 24/7 trading exacerbates volatility, with institutional investors often selling to meet margin calls during downturns. Current market sentiment is cautious, with the Crypto Fear and Greed Index declining from 74 to 52. Technical indicators show Bitcoin struggling below critical support levels, with a potential dip to sub-$100K if it falls below $105K. Despite historical patterns, some analysts argue that Bitcoin's fundamentals are stronger now, suggesting that the seasonal trend may weaken. Recent years have seen moderated losses in September, and historically, October has been a strong month for Bitcoin.
