U.Today – Bitcoin Performance in August

Bitcoin, the largest cryptocurrency by market capitalization, ended the month of August down 8.73%, as expected based on past trends.

In a recent tweet, Ali Martinez noted that while Bitcoin played out its historical narrative for August, similar expectations exist for September, which is typically believed to be a negative month for Bitcoin.

However, recent insights from Spot On Chain, shared in a thread of tweets, suggest five reasons why this year might be different:

1. Negative Augusts May Mitigate September Declines: Nearly 43% of negative Augusts have been followed by a positive September, indicating a possibility for a rebound this year.
2. Declining Selling Pressure: Major selling forces have cleared, including significant BTC sales from the German government and Mt. Gox, reducing potential sell-off risks.
3. Strong Long-Term Holders: Long-term holders have increased their holdings to 14.82 million BTC, representing 75% of total supply, which is a positive market factor.
4. Potential for Bitcoin ETFs: Bitcoin ETFs might act as a renewed buying force if the pattern of alternating between positive and negative months continues.
5. Favorable Economic Conditions: Factors like potential interest rate cuts by the FED and large cash repayments from FTX could stimulate demand for BTC.

Bitcoin to break September’s jinx? The factors above suggest that while September has historically been negative, this year’s conditions might lead to a different outcome.

This article was originally published on U.Today.