Bitcoin Price Drops to Kick Off Historically Bearish September

Cryptocurrency markets start the month in the red as analysts predict a bearish trend for September based on historical patterns.

Bitcoin (BTC) dipped 1% to trade at $58,100, while Ethereum (ETH) fell 3% to $2,450. The overall crypto market capitalization dropped 2.3%, while Polkadot (DOT) and Solana (SOL) slipped 1.5%.

Analysts from QCP Capital, a crypto trading firm, pointed out that September is usually a challenging month, not just for cryptocurrencies but also across various risk assets.

QCP noted on Telegram that September has historically been unkind to Bitcoin, with six out of the last seven instances ending in the red with an average loss of 4.5%.

"We expect BTC to find strong support around $54k, which is the level it bounced from in July before touching $70k," QCP analysts wrote. “October, however, has the strongest bullish seasonality, with BTC showing positive returns and an average gain of 22.9% in 8 out of the last 9 Octobers.”

Julio Moreno, head of research at on-chain analytics firm CryptoQuant, ran simulations using historical data to predict Bitcoin's performance for September. According to him, Bitcoin could end the month slightly lower at around $55,000, with prices ranging between $44,000 and $66,000.

Among the top 100 cryptocurrencies by market cap, Ordi (ORDI) rose by 11%, while Mantra (OM) and dogwifhat (WIF) gained 9% and 8%, respectively. Tron (TRX), Helium (HNT), and ImmutableX (IMX) were among the worst performers.

Several factors could influence the price of Bitcoin in September. The U.S. government and Mt. Gox plan to release 249,000 BTC (roughly $14.5 billion) into the market, which could depress prices. However, if the Fed decides to cut interest rates at its Sep. 19 meeting, demand for risk assets like Bitcoin could rise.

Meanwhile, U.S. stock markets declined on Tuesday. The Dow Jones Industrial Average slipped 1.5%, the S&P 500 lost 2%, and the Nasdaq-100 plunged 3%.