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US-based Kraken exchange predicts bitcoin to Suffer during September

US-based Kraken exchange predicts bitcoin to Suffer during September
  • According to the latest report from the Kraken platform, the leading cryptocurrency is on its way to see a very negative performance this month which could see it crash before our very eyes. 
  • Will September be the month bitcoin crashes?

According to the latest report from the Kraken platform, the leading cryptocurrency is on its way to see a very negative performance this month which could see it crash before our very eyes. 

The August report published earlier this week says:

“Historically, September is Bitcoin’s worst-performing month, with an average return of -7%. With Bitcoin underperforming its average monthly returns for most of the year, we could see returns below -7%."

As can be seen above, the report goes off what has historically happened in the crypto space but this doesn’t mean that history will rhyme necessarily. Due to the volatility of bitcoin, the report highlights that this will be the primary reason for its negative price movement due to the “Lesser-Known market dynamics“. 

The report continues:

“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%"

Looking back on the past two months, bitcoin has been performing relatively well but as we entered September, things were looking down. Red was bleeding throughout the market and bitcoin is currently struggling to keep above $10,000 at the time of writing leaving its future uncertain.

Report further discuss his UTXOs on the bitcoin blockchain, as they write:

“As of August 31, a record 63% of Unspent Transaction Outputs (UTXOs) on the Bitcoin blockchain have not moved in +1 year, indicating that an unprecedented number of Bitcoins are in the hands of long-term holders. Historically, this dynamic has foreshadowed a new bull market.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

 

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