It was a lackluster month for Bitcoin, the front-running cryptocurrency that’s steadily gaining infrastructure and global buy-in.
Despite a lot of enthusiasm for Satoshi’s brainchild as a “safe haven” in a battered equities market, we’re seeing that short-term volatility can still send BTC into negative regions pretty quickly.
However, the bemoaning of Bitcoin’s 7% drop in the month of September buries the lede – that long-term holders are still up from last year.
Year-over-year figures show that Bitcoin started October 2019 at around $8000 per coin. That figure now stands at $10,800 as of press time.
So when you look at the plunge from $12,000 down to $10,800, what you’re not seeing is that prior to the beginning of September, Bitcoin had been steadily gaining over five months from deeper lows developing in mid 2019.
In fact, as analysts ponder September as the worst month since March, they note that Bitcoin dropped a full 25% last March due to coronavirus issues.
Over at Coindesk, Omkar Godbole, a seasoned Bitcoin analyst, is suggesting that Bitcoin’s current woes may have to do with an “uptick in the greenback.”
“The Federal Reserve’s massive liquidity injections drove the dollar lower in the second quarter and the majority of the third quarter, yielding a rally in all major assets priced in the (dollar),” Godbole writes. “As such, the DXY’s corrective bounce in September put pressure on bitcoin, gold, and equities. The greenback looked at its most oversold in nearly 40 years during August.”
For ballast, Godbole also quotes CEO of Digital Assets Data Mike Alfred as saying that Bitcoin “seems to be sensitive to a stronger dollar in the short term.”
Despite these headwinds, many traders are bullish on Bitcoin. Looking at volumeand futures over the year has produced many positive indicators – and then there’s the moves at Berkeshire Hathaway that are convincing investors that the Oracle of Omaha may some day thaw on crypto. It’s all fodder for the hodler – if you can say that ten times fast.