Today, let’s speculate on Bitcoin price action during September. As shown from the data above, Bitcoin on average dumps nearly 8% during September. Many ideas are floating around trying to pinpoint the exact cause. Let’s discuss some of those ideas.
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Cheap Hydro Electricity
We all know China is contributing large amounts of hashing power to the Bitcoin network. Logically speaking, the tweet below checks out. Lots of rain, hydropower goes into overdrive, surplus of cheap electricity – Miners take advantage.
Post-Halving Sell Off
One could speculate it’s just a matter of timing. Inspecting previous post-halving Bitcoin price data shows a lot of blood. Could this be whales buying up Bitcoin pre-halving just to profit shortly thereafter? Perhaps. Bitcoin is still an infant compared to the traditional financial system, which makes it susceptible to manipulation.
Kraken Speaks Out
Twelve times in the past, Bitcoin’s annualized volatility bottomed between 15% and 30% before climbing, on average, to 140% and returning +196% over 94 days. As of the end of August, 38 days have passed since the volatility low of 23% set on July 24, with volatility rising to 44% and price gaining +25%Kraken.com
Fasten your seat-belts & prepare for a bumpy September – things are just getting started. Bitcoin as well as alts may very well continue to bleed over the coming month. On the bright side, next month has an average gain of 10.7% – Nice!