September is a very special month compared to the others: it is the month in which autumn officially begins and things fall. The first leaves fall from the trees, the first raindrops fall from sky and Bitcoin falls too. Oh yes, Bitcoin in September marked a decline in price more than once, in a cyclical and precise way. What can be done now? It seems obvious to me: to hope it goes back up! Seriously, let's see what happened in the past and why.
Do you remember 2017?
In 2017, on September 14th, there was a dump that caused the price of Bitcoin to drop from $4100 to $3100 in no time. It was a decline of about 25%, which was followed by a rise in the following months that brought the price to an all-time high for the period. Coincidences? It may be, but let's not despair. What triggered that decline? In fact, just a few days earlier, China outlawed Bitcoin. The fear that spread on the markets led to a general sale and the price was consequently affected. In just a few weeks, however, this was resolved and it reached $19,500 before the end of the year.
China prints money
Going back to the present day, after yet another ban by China regarding cryptocurrencies, Bitcoin has fallen again. But why does China keep making such statements? It did so in 2017, then excluded miners from its territory and finally declared Bitcoin illegal again. The answer seems obvious this time too: BTC is in open competition with the CBDC that the Chinese bank is attempting to launch. Furthermore, it must be considered that at the moment China is also dealing with the collapse of Evergrande, the real estate giant, and new injections of liquid money are expected.
Conclusions that are anything but random
There is little to do, a state that does not embrace new generation technologies lags behind in terms of progress. China is currently excluding huge cryptocurrency-related capital and, as if that weren't enough, it is also in trouble from an economic point of view. We'll see how it turns out, the sure thing is that for longtime hodlers this latest drop has gone unnoticed. Many are hanging on to the hope that Bitcoin is cyclical even in forming new all-time highs towards the end of the year, and its resilience is rendering the hope far from in vain.
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