The post September: Bitcoin’s Worst Month – Analyzing the $BTC Downturn and Its Causes appeared on BitcoinEthereumNews.com.

September continues to be a historically challenging month for Bitcoin, marking a consistent downward trend. Average Bitcoin returns in September have plummeted by 4.5% since its inception, making it the worst month for the cryptocurrency. “September is a month that often wakes investors up to harsh realities,” said Matt Hougan, Chief Investment Officer at Bitwise Asset Management. This article explores the recurring downtrend of Bitcoin in September, analyzing contributing factors and potential market implications. September: A Troubling Trend for Bitcoin Investors Since Bitcoin’s launch in 2010, September has consistently been its weakest month, with an average decline of 4.5%. This trend persists in historical data, revealing that of the 13 recorded Septembers, Bitcoin has experienced price decreases in 9 of them, underscoring the typical downturn. As of the most recent update, Bitcoin has already seen a 7% drop this month, evoking trepidation among investors. The “September Effect”: Understanding the Patterns Various theories attempt to explain the “September Effect” that plagues not only Bitcoin but also broader risk assets. Historically, September has seen more declines in the stock market compared to increases. This phenomenon, dating back to 1929, is especially pronounced in indexes like the Nasdaq 100, which has also struggled this month, showing nearly a 6% decline. Economists attribute this trend to several factors including post-summer volatility and fund losses at fiscal year-end, although no definitive cause has been established. Regulatory Pressures: The Role of SEC Enforcement September marks the beginning of a crucial period for regulatory oversight, especially from the SEC, whose annual enforcement calendar encourages action during this month. This September has witnessed several high-profile enforcement actions, including settlements with firms like Galois Capital and notifications directed at platforms such as OpenSea. As the SEC ramps up activities, the market remains on edge, anticipating potential lawsuits and regulations…

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Filed under: News - @ September 10, 2024 6:26 am