However, the experts at Spot On Chain refuse to just accept the high probability of a negative September and offer five key reasons why this time could be different for BTC.
Funnily, one of the main arguments is based on historical patterns that may not always be relevant. Thus, Spot On Chain points out that nearly 43% of years with negative Augusts have been followed by positive Septembers. This suggests that the market could see a rebound, despite the usual negative sentiment.
It is also worth mentioning that the U.S. government still holds over 203,000 BTC, but has been cautious in its recent movements, opting for over-the-counter sales that minimize market impact. This reduction in selling pressure could help keep the market stable.
Furthermore, long-term holders remain strong, adding 262,000 BTC to their positions in August. These holders now control 75% of the total supply, signaling confidence in the asset’s future. Top anonymous wallets, holding significant amounts of Bitcoin, have also remained inactive, further reducing the likelihood of sudden sell-offs.
There are other things that could affect the market too. With the Federal Reserve possibly cutting interest rates and FTX paying back $16 billion in cash, there could be more demand for Bitcoin. Also, growing political support for favorable cryptocurrency regulations in the U.S. could make investors more confident and give Bitcoin another boost this September.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
