Bitcoin Back To Five Figures, But August Is Historically A Bad Month For Price
- Bitcoin price surges after Fed announces the interest rate cut by 0.25% as expected
- Economist says, BTC will react more to the Fed when it becomes more institutionalized and it is “not there just yet”
- Past data leans towards a red August for Bitcoin
Yesterday, Bitcoin bulls made an entry and took the leading cryptocurrency back above $10,000. Currently, BTC/USD is trading at $9,964 with 24 hours gains of 1.81 percent while managing the daily trading volume of $921 million.
Last month was dominated by bears that had us dropping from the high of $13,200 to $9,050. But, looks like the Fed was finally able to move BTC price.
For the first time in 10 years after the recession of 2008, the Federal Reserve, cut down the interest rate by 0.25% as expected.
However, economist and trader, Alex Kruger says, bitcoin saw a “very minor increase” in its trading activity when FOMC statement came. FOMC volatility actually hit the market during Powell’s conference when Bitcoin didn’t even “flinch,” he said.
Powell not committing to further cuts. He even spoke about raising if the economy continues to grow.
This meeting was far less finish than expected.
— Mati Greenspan (@MatiGreenspan) July 31, 2019
“Theoretically, the more institutionalized class the asset class becomes, the more it will react to the Fed,” explains Kruger who says Bitcoin is “not there just yet.”
Past Data Leans Towards a Red August For Bitcoin
The flagship cryptocurrency has made a good start of the month after ending the last month with a red candle. July marked the end of Bitcoin’s five-month winning streak.
However, it is to be seen if August will turn out to be a green month after all.
Analyst Timothy Peterson points out how August has been a bad month for Bitcoin historically.
Since I first posted this on 7-22-19 $BTC has still followed $RIOT's price (from 80 days ago) closely. Keep in mind Aug. is a historically bad month for #bitcoin and that would correspond with the sharp drop in RIOT starting mid-May. If this works we are living in a simulation. pic.twitter.com/fW8ckWrzUh
— Timothy Peterson (@nsquaredcrypto) July 31, 2019
Q3 has been expected to have a low performance, as per historical data. Now, if we take a look at the past Bitcoin performance in the month of August, six out of nine times, it has been a red month.
2011 was the worst August for the leading cryptocurrency, registering a loss of over 39%. The other five times, that is in 2010, 2014, 2015, 2016, and 2018 BTC price was down 12 to 15 percent.
Only 2012 (11.6%), 2013 (25.9%), and 2017 (67.2%) were the bullish August months of Bitcoin.
Interestingly, in 2017, during the bull run Bitcoin registered the highest percentage gains in August.
Additionally, in 2010 and 2011, August marked the worst month for Bitcoin price and second worst in 2016.