September is usually a bad month for the market and cryptocurrency
September is a good time for pumpkin picking and your favorite Starbucks lattes, but maybe not for your crypto portfolio.
“Looking ahead, seasonality is not in favor of the asset class as September has tended to be a terrible month for Cryptocurrencies ,” analysts at Bespoke Investment Group wrote in a note to clients last week.
If prices for cryptocurrencies like bitcoin and ether suffer this month, it wouldn’t be out of the ordinary for how they’ve performed in 2022 overall. As of Tuesday morning, bitcoin’s price is down and around 58% so far this year, and ether has fallen around 56%.
Financial assets overall have struggled amid soaring inflation and interest rate hikes — a tool the Federal Reserve uses to cool economic activity when consumer prices are high, but that can also crimp the costs of investments that might be in your portfolio, like stocks and crypto.
September is known for being a bad month for the stock market. As Money reported last week, the S&P 500 has fallen a median of 0.42% and seen positive returns just 44.7% of the time in September since 1928, according to data from Bespoke.