August was a Red Month for Entire Crypto Market Except for 5 Altcoins
- Bitcoin lost more than 8% of its value in August
- Top altcoins down between 20 to 32%, with Dogecoin XRP, and others recorded the lowest percentage of losses
- But with this month comes September effect, will crypto market experience it?
August — the red month — has ended and now that we have entered a new month September, it’s to be seen if we are in for a bumpy autumn.
In the past 30 days, Bitcoin has dropped 8.44% as we trade around $9,500. But still, the leading cryptocurrency is up more than 150%.
But altcoins suffered even worse, with highest losses of 7154% registered by Edgeless (EDG).
Only five cryptocurrencies viz. Wanchain (37.16%), Metal (6.85%), Ethereum Classic (4.96%), Everex (4.43%), and Maidsafe (3.73%), as per Messari are the only exception to these severe losses.
This loss has the market cap going from $274 billion to $248 billion, wiping out $26 billion in the process.
BTC dominance, however, started from 67.5%, jumped to 72.5% only to end the month around 70.7%, as per TradingView.
Will Crypto Market Experience the September Effect?
Historically, Q3 has been a bad month for Bitcoin and by extension, it means worse for altcoins. September, however, had been majorly a positive month.
But, there is also the September Effect.
This refers to historically weak stock market returns in September month. Generally, it is believed that after returning from summer vacation in September, investors are ready to lock in gains and tax losses before the year ends.
Moreover, there is also a belief that individual investors liquidate stocks going into this month to offset schooling costs for their children.
However, it is just historical data rather than an effect with a natural connection.
If we take a look at Bitcoin’s movement last year in September, it started the month at around $7,053 only to spike to $7,378 on Sep 5th. In the next few days, the price dropped to $6,225, ending the month around $6,330.
In 2017 as well, BTC price went above $4,900 then dropped to about $3,500 level and ended around $4,300.
Let’s see if September finally takes us to $8,500 or below as many CT analysts and traders are expecting or we’ll surge higher as Bitcoin proponent Max Keiser is projecting.
#Bitcoin hash approaches 90 Quintillion. Per protocol’s hard-coded Game Theory, hash precedes price. $28,000 in play.
— Max Keiser, tweet poet. (@maxkeiser) September 1, 2019
According to Raoul Paul, Founder and CEO of Global Macro Investor and Real Vision Group, this might be the last time to “board the rocket ship” as there is a high probability of success, given the wedge pattern.
The “shit-ton” going on in macro land — negative interest rates, trade war, geopolitical issues, QE, currency devaluation, inflation and much more — is also the reason, he says, to board this train more than ever.