September has historically been a challenging month for Bitcoin (BTC), with an average profitability of -6.18%. However, experts are questioning this assumption, citing several factors that could lead to better-than-expected performance this month.
Billy Markus, cofounder of Dogecoin, echoed the sentiment of many investors when he posted the famous quote from the rock band Green Day, “Wake me up when September ends,” in response to Bitcoin’s recent drop below the $59,000 level, and its further decline to as low as $57,128.
Despite the bearish sentiment, several factors suggest that Bitcoin could outperform its historical average this September. First, the large sales of the cryptocurrency by governments and institutions such as Germany, Mt. Gox and Genesis have already taken place, reducing the potential downward pressure on the market.
wake me up
when september ends pic.twitter.com/FLIGnF4F0p— Shibetoshi Nakamoto (@BillyM2k) September 1, 2024
Why else?
In addition, long-term holders of Bitcoin continue to accumulate the cryptocurrency, indicating a strong belief in its long-term potential. The number of inactive top wallets has also decreased, suggesting a reduced likelihood of sudden sell-offs.
Another positive factor is the expectation of increased investment in Bitcoin ETFs. Potential inflows of up to $1.5 billion this month could provide a significant boost to the market.
While challenges such as potential Fed rate hikes and regulatory uncertainties remain, the overall outlook for Bitcoin in September seems more promising than in previous years.
As Billy Markus’s tweet suggests, many investors may be hoping for a quick end to September. However, the factors outlined above suggest that the first cryptocurrency may be poised for a more positive month than in previous years.