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September has been the worst month for Bitcoin(BTC). Over the past five years, the original cryptocurrency has experienced an 8.5% monthly price decline in September on average.
But this month could bring some good news for cryptocurrency.
A positive market trigger might be the eagerly anticipated update to the Ethereum 2.0 network, often known as the Merge to a proof-of-stake system.
A positive market trigger might be the eagerly anticipated update to the Ethereum 2.0 network, often known as the Merge to a proof-of-stake system.
Ethereum has outperformed Bitcoin by 16% since the beginning of June.
The merger is anticipated to start on September 6 and end around September 15. By the end of 2022, according to experts, Ethereum's price will have risen above $2,000 if the merger goes down without a hitch.
Even though August's price movement in the cryptocurrency market was largely negative, institutional investors are allegedly beginning to delve more deeply into the DeFi sector.
Even though the crypto market was mostly down in August, institutional investors are said to be starting to get more involved in the DeFi space.
Through a partnership with major cryptocurrency exchange Coinbase, BlackRock, the biggest asset manager in the United States, will make cryptocurrency directly available to institutional investors through Aladdin, BlackRock's investment management platform.
BlackRock manages assets worth about $8.5 trillion, and the Aladdin platform is used by more than 200 institutions, such as insurance companies, pension funds, and banks.
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The Schwab Crypto Thematic ETF, a brand-new cryptocurrency exchange-traded fund (ETF), was also introduced by Schwab Asset Management in August.
Schwab Asset Management also started a new cryptocurrency exchange-traded fund (ETF) in August. This one is called the Schwab Crypto Thematic ETF.
The new fund doesn't specifically invest in cryptocurrencies, but it does give investors access to companies that may benefit from the growth of the global cryptocurrency ecosystem.
MicroStrategy, Marathon Digital, and Riot Blockchain are among the top fund holdings.
According to data, crypto addresses holding between $1,000 and $10,000 in Bitcoin started purchasing the decline in the final days of August, according to Marcus Sotiriou, a crypto analyst at GlobalBlock.
Marcus Sotiriou, a crypto analyst at GlobalBlock, says that data shows that crypto addresses with between $1,000 and $10,000 in Bitcoin started buying the dip in the last few days of August.
Sotiriou says that even though retail interest and liquidity in the crypto market are low, Bitcoin whales may have started to buy up again.
In September, the Ethereum merge is likely to be the biggest event that could move the crypto market. Investors will also be keeping an eye on a number of other important events, though.
But investors will also keep an eye on a number of other important events.
The U.S. Securities and Exchange Commission (SEC) extended its deadline for making a decision on VanEck's proposal to start a spot Bitcoin ETF from August 27 to October 11.
The U.S. Securities and Exchange Commission (SEC) put off making a decision on VanEck's request to start a spot Bitcoin ETF once again, moving the deadline for making a decision from Aug. 27 to Oct. 11.
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Several Bitcoin futures ETFs can already be traded on major U.S. exchanges because the SEC has already given them approval. Even so, the spot Bitcoin ETF that is being proposed would be the first of its kind.
According to Sotiriou, the recent stories about the Ethereum merger and a prospective SEC approval of a spot Bitcoin ETF may be sufficient to revive the sagging cryptocurrency market.
Sotiriou says that the news about Ethereum merge and the possibility that the SEC will approve a spot Bitcoin ETF could be enough to get the crypto market out of its slump.
Near a time when consumer confidence is at yearly lows, "if the application is approved and we really see the Ethereum merge take place, this might contribute to fresh interest in the cryptocurrency market," Sotiriou claims.
Sotiriou says, "If the application gets approved and the Ethereum merge actually happens, this could bring back interest in the crypto market at a time when consumer sentiment is at its lowest level in a year."
In September, investors will also keep an eye on important economic data and changes to policies.
On Sept. 13, the U.S. Labor Department will release its monthly report on inflation based on the consumer price index (CPI). CPI growth fell from 9.1% in June to 8.5% in July.
If it drops again in August, it could be a good sign that inflation has finally reached its peak.
On September 21, the Federal Open Market Committee (FOMC) will also announce its most recent decision regarding interest rates and the accompanying monetary policy statement.
According to CME Group, the bond market is presently pricing in a 70.5% possibility of a subsequent 75 bps rate hike and just a 29.5% chance that the Fed will only increase rates by 50 bps in September.
