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Historically Painful: Bitcoin Lost 12% on Average in September For the Past Three Years

September has historically been an unpleasant month for Bitcoin price. In the last three years alone, BTC lost about 12% on average during this month.

The price of Bitcoin (BTC) on major exchanges has dropped by approximately 2.9 percent to $10,558.60 over the past 24 hours, as of press time —sparking widespread declines throughout the wider cryptocurrency market.

Tokens relating to decentralized finance have seen particularly harsh declines of late, and BTC’s drop in valuation since a failure to push higher over the weekend hasn’t done DeFi tokens any favors.

Coin360_heatmap-min
The cryptocurrency market is rapidly losing valuation today. Source: Coin360

Where The S&P 500 Goes, BTC Follows

The cryptocurrency market’s decline in valuation isn’t taking place in a vacuum, of course. The S&P 500 Index has steadily dropped in September from levels approaching 3,600 to nearly 3,300.

S&P500_tradingview
The S&P 500 Index has been in decline throughout September. Source: TradingView

With the S&P 500 Index struggling, it comes as no surprise that the price of the leading cryptocurrency is also finding it hard to gain a foothold in September. As noted by Kraken’s Bitcoin Volatility Report for August, the correlation between BTC and the S&P 500 reached as high as 0.84 last month.

2020 Investment Assets Performance

The Grayscale tweet from earlier also included a compelling graph exhibiting the performance of several investment assets in the first five months of the new decade.

Bitcoin, Gold, Bonds, S&P 500 In 2020. Source: Twitter
Bitcoin, Gold, Bonds, S&P 500 In 2020. Source: Twitter

The image demonstrates that in this period, the S&P 500 index was down by nearly 10%. Government bonds were just in the positive, and gold had registered gains of about 13%.

Bitcoin’s numbers were substantially higher, registering a double-digit increase of about 30%. The primary cryptocurrency bottomed during the mid-March sell-offs, but it recovered fully since then, without the assistance of a central authority behind it.

Being also the best performing asset of the previous decade, Bitcoin has attracted numerous proponents even from the institutional investment field. A recent survey compiled by Fidelity exemplified this by informing that 36% of such investors own BTC or some alternative coins.

Grayscale, serving primarily institutional investors, also supported this narrative as some reports inform that the company has been buying vast quantities of BTC since the start of the year.

The company sells the primary cryptocurrency with a premium of about 23% at the time of this writing. Meaning that investors purchasing shares through Grayscale prefer paying more to avoid transferring, storing, and managing the coins on their own.

News source

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