Bitcoin Drops 12% From Record High, Trading at Two-Month Lows
September has historically been a soft month for Bitcoin, averaging a -3.77% decline. Ethereum fell 2.7% to $4,352.
Quick overview
- Bitcoin is struggling to find support, slipping 0.1% to $108,747, with a 12% drop since its peak on August 13.
- September has historically been a weak month for Bitcoin, averaging a -3.77% decline due to technical exhaustion and a derivatives market skewed toward short positions.
- Ethereum and other major cryptocurrencies also fell, with Ethereum down 2.7% and Solana down 3.2%.
- Despite the short-term challenges, factors like steady inflows into Bitcoin ETFs and potential Fed rate cuts may cushion the downside.
The world’s largest cryptocurrency is struggling to find support—compounded by the fact that September has historically been a weak month for Bitcoin.
On Monday, Bitcoin slipped 0.1% to $108,747, according to Binance, bringing prices back to levels last seen in early July, just before its latest rally. Since peaking on August 13, Bitcoin has dropped 12%, with long liquidations exceeding $544 million, according to BuenBit data.
Ethereum fell 2.7% to $4,352, while other major tokens traded lower as well: Solana -3.2%, Dogecoin -3%, and XRP -2.3%.
Historical Performance – September
September has historically been a soft month for Bitcoin, averaging a -3.77% decline, weighed down this time by technical exhaustion signals and a derivatives market skewed toward short positions.
Even so, some factors could cushion the downside, including steady inflows into spot Bitcoin ETFs, corporate accumulation, and the potential for a Fed rate cut in September. Analysts maintain a cautious short-term outlook but remain constructive in the medium term, citing Bitcoin’s growing institutional role and Ethereum’s potential as its flows stabilize.
Traditional Markets
International markets opened the week on a positive note, with gains across major Asian and European exchanges. Trading volumes are lighter, as U.S. markets remain closed on Monday for the Labor Day holiday.
In Asia, the Shanghai Composite rose 0.46%, while Japan’s Nikkei 225 fell 1.22%, dragged down by a 9.1% plunge in Advantest (6857.T) following profit-taking. SoftBank Group, a major investor in artificial intelligence, also slid 6%. The standout was Hong Kong’s Hang Seng, which jumped 2.15%, driven by Alibaba’s 18.5% surge.
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