As September opens, Bitcoin confronts a pivotal moment with significant challenges looming. The cryptocurrency concluded August at $58,975, marking an 8.75% drop for the month—its sharpest decline in six months. This represents a reverse of the upward trend and a far cry from the high US stocks that reached almost record levels in August. These divergences are areas that have raised more questions on issues like valuation and investor sentiment, and these should pave the way for more volatility in September.
Bitcoin’s price targets for September are set to range from $46,000 to $70,000 standing for several possible scenarios. The sharp decline in August indicates the weakness of Bitcoin while the rise in major stock markets shows that traditional equities are no longer an accurate indicator for cryptocurrencies.
On average, September has been a weak month for Bitcoin out of the last seven years with all these years experiencing declining returns. The worst September in Bitcoin was recorded in the year 2019 saw a decline of 13%. On the other hand, 2023 was a slight upturn which was 4% in the positive. Such a pattern raises concerns about volatility and creates doubts about the prospects of Bitcoin in the next month.
Upcoming Events Could Influence Bitcoin’s Performance
Several factors may impact Bitcoin in the coming months. Potential events of interest include the upcoming US presidential election, the FOMC meeting on November 5th, and Consumer Price Index (CPI) data and the monthly job data. Besides, shifts in the M2 money supply, which determines the liquidity level of the economy, will also be important in setting the expectations of the market.
Lastly, September can be considered a critical period for Bitcoin and periods with high volatility. It will be imperative to look at the aspects that brought this cryptocurrency to its current value to analyze how it will fare in the upcoming weeks allied to economic and political shifts.
The post Bitcoin to Face Critical September After 8.75% Drop in August appeared first on Live Bitcoin News.
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