• The recent Bitcoin flash crash has raised fears that further drawdowns in BTC price are ahead.
• Historically, BTC has performed poorly during September.
• Some speculate that BlackRock’s application for a spot Bitcoin ETF could be behind the recent price drops.
Bitcoin Flash Crash Raises Concern
The tumbling Bitcoin price, which fell to a 10-week low in August, has been a cause for concern within the crypto market. What’s more, price action during the tail end of Q3 has been typically bearish, compounding fears of further drawdowns ahead. Sounding the alarm, Trader “Daan Crypto Trades” told his near 350k followers that the last six consecutive Septembers played host to overall losses for Bitcoin. Analysis of the chart accompanying his tweet showed that since 2013 just two years out of the last ten saw gains in September while the remaining eight suffered monthly losses of between -1.76% and -19.01%.
Crypto Fear & Greed Index
The recent Bitcoin flash crash saw the Crypto Fear & Greed Index sink to a reading of 37 , indicating fearful sentiment within the markets. With August drawing to a close amidst tightening macroeconomic conditions and ongoing uncertainty, the threat of further painful movements looms large. On a more positive note, Daan Crypto Trades underlined that October is historically BTC’s best-performing month.
Is BlackRock Behind Price Drops?
Growin narrative suggests that BlackRock is behind Bitcoin’s price weakness. YouTuber Crypto Rover theorized that the firm may be deliberately driving down prices to acquire coins on the cheap in readiness for its ETF going live: “Many overlook the fact that BlackRock requires actual #Bitcoin to back their Spot ETF… another possibility is they’re deliberately driving prices down to get a better entry…“
September Price Performance Historically Bearish
Historically, BTC has performed poorly during September with 8 out 10 years experiencing losses between -1.76% and -1901%. While this paints an overall negative picture for September performance it should also be noted that October is historically BTC’s best performing month according to data provided by Daan Crypto Trades .
Fear and uncertainty remain dominant forces in market sentiment despite disagreement over what may or may not be causing recent drops in price action . Some suggest BlackRock’s ETF application could be behind current bearishness while others point towards historical performance as evidence for why investors should proceed with caution throughout September .