In the stock market, the month of September is typically a “bloody month”, or a red month, because of how poorly the stock market performs.
According to the "Stock Trader's Almanac," on average, September is the month when the stock market's three leading indexes usually perform the poorest. This has been termed “The September Effect.” You may also have heard of “Bloody September.”
The September Effect is a market anomaly and not related to any particular market event or news.
What about the cryptocurrency market? Historically, how has Bitcoin performed during the month of September? Will this upcoming September be a red month?
Looking back at the Bitcoin charts, it’s easy to see that Bitcoin tends to see negative returns in the month of September.
As a crypto investor/trader, should you be worried?
Over the last decade, seven out of ten Septembers were red, and the last four years have been red. Out of the last four, 50% saw the first week to have negative returns. Interestingly, the average historical negative monthly return for Bitcoin in the month of September is only about -8.6%…
In retrospect, it seems that the “Red September” for Bitcoin has been made out to be a bigger deal than it really is. In contrast, the months of April and May have historically been green months. Both were red in 2021.
In the stock market, September is not the worst trading month every year. The same can be said about the cryptocurrency market.
During the first week of September 2021, Bitcoin experienced a relatively large decrease in value, dropping nearly 13%, and as low as $42,900.
The second week however we saw the Bitcoin bulls fight back, bringing the price over $48,800 and closing the week above $47,000 (an increase just shy of 4%).
At the start of the third week the Bitcoin bears took advantage of the FUD coming out of China and took the price down to $39,573. Bitcoin quickly rebounded for the following two days getting all the way up to $45,000! The price has now been ranging between $40,000 and $44,000. The week ends with a decrease of about 8%.
The Greed and Fear Index shifted from “Neutral” to “Extreme Fear” and finished off the week with “Fear.”
What will the final week of September look like for Bitcoin? Will the bulls be able to push Bitcoin higher to $50,000? Or will the bears remain in control?
If Bitcoin keeps up with this current trend, then it will be another Red September to add to the history books. Which overall isn’t necessarily a bad thing. On a macro level Bitcoin will be breaking all time highs. This may just be the opportunity for you and I to accumulate more Bitcoin before it continues on its upward trend to higher highs in October.
Always expect the unexpected.
Stick to your plan. Take profits. Set your stop losses. Don’t get greedy.
Thank you for your time! If you found this article interesting or helpful in any way please let me know in the comments below. Feel free to follow me for more articles on how I invest or how I earn other free rewards such as crypto, stocks, or gift cards.
If you don’t already have a Coinbase account then I recommend you create one as soon as you can! You’re missing out on easy free crypto every few weeks. I wrote an entire post about why I feel everyone should have a Coinbase account. I invite you to use my Coinbase referral so you can get $10 in free Bitcoin and earn up to $40 in other cryptocurrencies right away!
https://www.coinbase.com/join/sanida_e?src=ios-share
Want to play games to earn free crypto? I encourage anyone and everyone to check out RollerCoin for themselves to see why I enjoy it so much. It is by far the funnest way to earn free cryptocurrency. In less than 4 months I’ve already made more than $100 and the numbers are steadily increasing! Use my link below if you want some bonus BTC (1000 Satoshis) to start your RollerCoin account!
https://rollercoin.com/?r=kntu7lsk
If you want to start earning points today to receive free gift cards from searching the web, feel free to use my Microsoft Rewards referral link. I’ve been earning close to $10 in Amazon gift cards every month!
https://account.microsoft.com/rewards/rafwelcome?rh=DA0E8303&ref=1000
Feel free to use my referral link if you decide to create a Robinhood account so you can get THREE free stocks! AMC to the moon!! 💎 🙌 🚀 🌙
https://join.robinhood.com/nathans-4fad76
*Disclaimer- I am not a certified financial planner/advisor, certified financial analyst, economist, CPA, accountant, or lawyer, or anything important for that matter. The contents of this article are for informational, educational, and entertainment purposes only and do not constitute financial, accounting, or legal advice. Always do your own research.*
