The post Bitcoin Breaks The Mold With Strong September Gains, But Will It Continue? appeared on BitcoinEthereumNews.com.

Bitcoin has had a barnstorming September despite history indicating otherwise. In a month where the world’s favorite crypto asset usually falls flat on its face, many were caught by surprise as it surged ahead, making impressive gains.  Bitcoin’s price is currently hovering at around $64,400, up 9.36% for the month, according to data from Coinmarketcap. Although it has dipped in the last 24 hours, there are strong signs that the rally could continue, driving the asset to a new all-time high in the coming days or weeks.  The impressive gains this September come in stark contrast to its usual performance, where it has traditionally dropped by an average of 5.9% in a phenomenon that has come to be known as the “September effect”.  What is the September effect? The month of September is notorious among investors, and not only in the crypto markets. The September Effect echoes across almost every financial market, including traditional bellwethers like the S&P 500, commodities, and oil.  According to CoinGlass, the value of Bitcoin declined in eight of the last ten Septembers before this year, making it the worst month on the calendar for the top digital asset.  A report by GRVT looks at the reasons behind the September Effect, and finds that they’re quite varied. For one thing, the market tends to experience much higher trading volumes in September compared to the preceding months. The drop in trading volume occurs due to people enjoying their vacations. Traditionally, September is the month that many traders are back in business and so trading volumes pick up a notch, leading to increased volatility and selling pressure.  GRVT also cites other factors, including tax deadlines, with the U.S. fiscal tax year ending on September 30, for example. This entices investors to sell digital assets such as Bitcoin, in…

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Filed under: News - @ October 6, 2024 8:12 am