Each month, Bitcoin performance can vary widely depending on how investors feel about the market. Years of monthly return data available for the cryptocurrency have led investors and analysts to try to determine the cryptocurrency’s next step based on historical performance. As the month of August comes to an end, Bitcoin investors are already looking forward to September in the hope that the new month will bring better news.
Bitcoin appears to be ending August on a negative note
Despite starting at a high level, the Bitcoin price in August experienced multiple crashes as the month progressed. The first week of the month came with a 30% crash for the BTC price, which translated into a market-wide crash that mainly affected altcoins.
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Since then, there has been a recovery in the Bitcoin price, but this is far from the starting point. This price drop means that the month of August followed the trend of the past two years and ended up in the red. So far, so facts from Coinglass, the price of Bitcoin has fallen by 6.03% in the month of August, at the time of writing.
This month’s performance is not exactly extraordinary, as the Bitcoin price has had more red months than green since its inception. The data starts in 2013 and has provided twelve years of monthly returns since then. Of those 12 years, BTC price has closed green in 8 different years, leaving only four green August closes for the cryptocurrency.
So far, the only times the digital asset has ended the month of August in the green appear to be during bull markets. This can be seen in 2017 with an increase of 65.32%, as well as in 2020 and 2021 with positive returns of 2.83% and 13.8% respectively.
Will September be better?
Historically, the month of September was even worse for the Bitcoin price compared to August. In eleven years, there have been eight months of negative returns, compared to three months of positive returns. This brings the average monthly return for September to -4.78%.
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With August performing so poorly, the expectation is that September could go in the opposite direction. However, not everyone agrees with this position. Crypto analyst @btc_charlie on X (formerly Twitter) has warned that September may not go as planned.
He points out that the same people who say prices will rise are the same people who missed Bitcoin’s bottom and top. Instead, he instructs investors to look at the average monthly returns for September, which are negative, when making their decisions.
Featured image created with Dall.E, chart from Tradingview.com