Bitcoin price decline, explained
September is known to be a bearish month for the crypto market and this year is no different. The top 10 cryptocurrencies by market cap have fallen between 6- 11% in the past day, according to data from CryptoRank. Bitcoin dropped 8% and is currently trading around US$ 19,000 at press time.
The price data shows Bitcoin is following the same trend as it has in the past decade
On September 1, 2013, Bitcoin prices slipped from US$ 240 per BTC to $138 per BTC. The same goes for September 2014, when BTC’s price began at US$ 482.28 per unit and slipped by 21.79% lower to $377.18 per coin by the end of the month.
Fast forward to September 2019, Bitcoin prices declined around 16.94% while one year later, in September 2020, BTC gained 4.81%.
In September 2021, Bitcoin was in the red but made a comeback in October and reached an all-time-high on 10 November 2021.
Historical trends from the past decade show October as bullish and a revival this year may be possible.
Fed rate hike
However, Fed rate hikes may jeopardize hopes for Bitcoin’s price recovery as crypto market prices have been correlated with U.S. equities for the past year. The U.S. The Federal Reserve is expected to announce a 75 basis point rate hike at the Federal Open Market Committee (FOMC) meeting slated for 21, September 2022. In the past, Fed rate hikes in March, May and June 2022 have caused at least 10% drop in Bitcoin prices.
Photo: Crypto Daily Gazette