FFN – Despite September’s reputation as a challenging month for cryptocurrencies, with Bitcoin historically showing average returns of -6.18%, there are reasons to believe that this year could be different. Here are five key signs that a Bitcoin bull run may be on the horizon this September:
1. Historical Patterns Favoring a Rebound
While historical trends for cryptocurrencies can be unreliable, Spot On Chain highlights that nearly 43% of years with negative Augusts have been followed by positive Septembers. This suggests that the market could defy the usual negative sentiment and experience a rebound.
2. Decreased Selling Pressure
Major players such as the German government, Mt. Gox, and Genesis Trading have already offloaded significant amounts of Bitcoin, with combined sales exceeding 170,000 BTC in July and August. Notably, the U.S. government, which holds over 203,000 BTC, has opted for over-the-counter sales, minimizing market impact. This reduction in selling pressure could contribute to market stability.
3. Strength of Long-Term Holders
Long-term holders added 262,000 BTC to their positions in August, and these holders now control 75% of the total Bitcoin supply. This strong accumulation signals confidence in Bitcoin’s future, with top anonymous wallets remaining inactive, reducing the likelihood of sudden sell-offs.
4. Potential Inflows into Bitcoin ETFs
There is potential for significant inflows into Bitcoin ETFs this September, with projections ranging between $500 million and $1.5 billion. This follows a slight dip in net flows in August, with historical patterns suggesting a positive turn this month.
5. Macroeconomic and Regulatory Factors
The Federal Reserve may cut interest rates, and with FTX repaying $16 billion in cash, demand for Bitcoin could increase. Additionally, growing political support for favorable cryptocurrency regulations in the U.S. could boost investor confidence and provide Bitcoin with another push this September.
Key Words: Bitcoin, BTC, bull run, cryptocurrency, September, ETFs, long-term holders, market stability.
