September is typically a bearish month for Bitcoin, with an average 7% drop in price.
However, if there is a price dip in September, it is unlikely to be massive and could be between 7% and 13%.
The U.S. Federal Reserve's (Fed) stance on interest rate hikes has sent the cryptocurrency market into unrest.
Bitcoin is currently trading at about $25,825, and Ethereum is testing resistance at $1,627.
There is a good chance that a Bitcoin ETF will be approved in the United States by the end of 2023. If this happens, we could see Bitcoin's price explode before the end of the year.
2023 started on a positive note for the crypto market, with several cryptocurrencies beginning to rally from the first day of the year.
As it stands, the market is facing a few volatility issues, with Bitcoin and other top cryptocurrencies lingering at key support levels.
The crypto fear and greed index now points towards slightly strong fear, the global crypto market now has a capitalization of $1.04 trillion, and we all want to know:
What should we expect from Bitcoin in this September?
You should know that Septembers are generally bearish months for the crypto market.
According to the chart below, Septembers haven't been the most bullish months since 2013.
For example in a thread posted by Rekt Capital earlier in the week:
September tends to be a negative month for #BTC
The average drop in Bitcoin in September is 7%
https://twitter.com/rektcapital/status/1698981346285076563?s=20
However:
If a double-digit price dip occurs, it would likely be shallow.
Chances for a massive crash are unlikely
Likely retrace to be between -7% and -13%
In summary, the analyst is saying that September are generally bearish for Bitcoin and that the cryptocurrency dips by an average of 7% yearly.
However, if we are going to see a price dip in September, Rekt Capital says that this dip will not be so massive, and will be between a 7% low and a 13% high.
The U.S. Federal Reserve's (Fed) stance on interest rate hikes has sent the cryptocurrency market into unrest for months. For example, Bitcoin briefly broke $31,000 in July 2023 but fell back to $29,000, and then into a range between $25,000 and $26,000.
Because of this, many crypto investors remain confused and nervous.
Bitcoin is trading at about $25,825 at the time of writing and is currently trading at negligible changes over the last day and week.
Ethereum on the other hand, is testing resistance at $1,627 and is down by 1.35% over the last week.
Amid all the bearishness, however, the crypto market appears strong and hasn't reacted too bearishly to the current market conditions.
What should you expect from September?
Not very much. but keep your eyes open, because the market is full of surprises.
A good part of what keeps cryptocurrencies afloat is hype. Not many people like to hear this, but it's true.
Bitcoin rallied from $25,150 to about $26,443 on Thursday this week, amid the cryptocurrency's volatility surges as the ETF hype grows.
According to a recent tweet from Santiment, Bitcon's supply on exchanges is even on the rise and has increased by 3.1% in 2 weeks.
Santiment notes that this may mean that traders are being motivated to take small profits, and this may be why Bitcoin has now retraced its steps back to the $25,900 zone.
Data from CryptoQuant also corroborates this narrative.
The ongoing increase in Bitcoin's exchange netflow shows that more Bitcoin is entering exchanges than leaving. This means that more short to medium-term investors intend to sell, rather than keep
It is quite likely that by the end of 2023, a Bitcoin ETF will be approved in the United States after being highly sought after since 2013.
This might happen, despite how the SEC has denied ETF applications for the last 10 years, including more than 30 applications in 2021 alone, according to Yahoo Finance.
Recall that the agency on August 31, that it would postpone its decisions over the ETF applications from WisdomTree Inc., Invesco, Valkyrie Funds, Bitwise Asset Management Inc., Fidelity Investments, VanEck and BlackRock Inc.
The deadline is currently mid-October, but can still be extended further until the end of 2023.
However, BlackRock alone has submitted 576 applications so far, according to Eric Balchunas, and the chances of an approval this time, have never been stronger.
Bloomberg analysts have also increased their predictions for an approved spot Bitcoin ETF by the end of 2023, from 65% to 75%.
This happened after a recent Grayscale victory against the SEC over ETFs.
If a Bitcoin ETF is finally approved, we may see Bitcoin's price explode before the end of the year, and perform even better after the next bull run.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.