September ‘crash’ to $22K? — 5 things to know in Bitcoin this week

Source: Rekt Capital/XAugust threats being worst in eight yearsIt is no trick that Bitcoin has actually underperformed this month– even by August requirements, which have actually rarely offered bulls anything to celebrate.BTC/ USD is down 11% this month, and with the weekly close around the corner, anticipation is developing amongst market observers.”An accompanying chart compared the existing 490-day negative YoY returns to previous periods, with 2015 long lasting 386 days.Van de Poppe added that even favorable news occasions, such as the future green-lighting of the United States very first Bitcoin area rate exchange-traded fund (ETF), had actually not yet gotten in market awareness. “They lag behind as the market is stuck in the bear market modus, as the previous 2 years price has actually been falling.”Huge week for ALL things related to financial data, volatility is back,” it summed up in part of its most current X analysis.Record hash rate reflects “miner bull run”Could Bitcoin miners already be providing a silver lining for bulls into the end of the year?Related: Bitcoin velocity strikes lows last seen prior to Q4 2020 BTC cost breakoutAs Cointelegraph reported, one theory anticipates that Q4 will see miners bidding Bitcoin higher in preparation for the April 2024 block aid halving, which will cut their benefit per mined block by 50%. They should join “clever cash” in doing so, producing a buzz of its own around the halving narrative, even if the broader market only tends to respond to emission changes publish factum.Continuing the argument, James Straten, research study and data expert at crypto insights firm CryptoSlate, noted that Bitcoin hash rate is already headed into uncharted territory.

Source: Rekt Capital/XAugust dangers being worst in eight yearsIt is no secret that Bitcoin has underperformed this month– even by August standards, which have actually rarely provided bulls anything to celebrate.BTC/ USD is down 11% this month, and with the weekly close around the corner, anticipation is constructing among market observers.”An accompanying chart compared the existing 490-day negative YoY returns to previous periods, with 2015 enduring 386 days.Van de Poppe added that even positive news occasions, such as the future green-lighting of the United States very first Bitcoin area rate exchange-traded fund (ETF), had actually not yet gone into market consciousness. “They lag behind as the market is stuck in the bear market method, as the past 2 years cost has been falling.

“Huge week for ALL things related to economic information, volatility is back,” it summarized in part of its newest X analysis.Record hash rate shows “miner bull run”Could Bitcoin miners already be supplying a silver lining for bulls into the end of the year?Related: Bitcoin speed hits lows last seen prior to Q4 2020 BTC rate breakoutAs Cointelegraph reported, one theory expects that Q4 will see miners bidding Bitcoin higher in preparation for the April 2024 block subsidy halving, which will cut their reward per mined block by 50%. They must join “smart money” in doing so, creating a buzz of its own around the halving narrative, even if the wider market just tends to react to emission modifications post factum.Continuing the debate, James Straten, research study and data analyst at crypto insights firm CryptoSlate, noted that Bitcoin hash rate is already headed into uncharted territory. Source: James Straten/XHash rate is an evaluation of the processing power committed to mining, and while impossible to determine exactly, figures from on-chain analytics firm Glassnode show not only new all-time highs, but a spate of upward adjustments contrasting with downward-trending or flat BTC price performance.Last week, Bitcoin also saw one of its biggest upward difficulty modifications of 2023, taking the on-chain fundamental yardstick to all-time highs of its own.This short article does not contain financial investment advice or suggestions.

Other Questions People Ask

What factors contributed to the September 'crash' to $22K in Bitcoin?

The September 'crash' to $22K in Bitcoin can be attributed to several factors, including a significant 11% decline in BTC/USD this month, which has raised concerns among market observers. Additionally, the ongoing bear market sentiment has overshadowed even positive news, such as the potential approval of the first Bitcoin spot ETF in the U.S. This combination of negative market performance and lack of bullish catalysts has created a challenging environment for Bitcoin prices.

How does the Bitcoin hash rate impact the September 'crash' to $22K?

The Bitcoin hash rate plays a crucial role in understanding the dynamics of the September 'crash' to $22K, as it reflects the processing power dedicated to mining. Recent reports indicate that the hash rate is reaching all-time highs, suggesting that miners are still actively participating in the network despite price declines. This could indicate a potential bullish sentiment among miners, who may bid Bitcoin higher in anticipation of the upcoming block subsidy halving in April 2024.

What should investors know about Bitcoin's performance this September?

Investors should be aware that Bitcoin has underperformed significantly this September, with an 11% drop in value compared to previous months. The current market conditions are characterized by a prolonged bear market, which has led to negative year-over-year returns for 490 days. Despite this, there are indications that upcoming financial data releases and miner activities could influence future price movements, making it essential for investors to stay informed.

What role do miners play in the potential recovery from the September 'crash' to $22K?

Miners could play a pivotal role in the potential recovery from the September 'crash' to $22K by increasing demand for Bitcoin as they prepare for the upcoming block subsidy halving. As miners anticipate reduced rewards per mined block, they may begin bidding higher prices for Bitcoin, creating upward pressure on the market. This "miner bull run" could generate positive sentiment and potentially reverse some of the bearish trends observed this month.

How does market sentiment affect Bitcoin's price during the September 'crash' to $22K?

Market sentiment has a profound impact on Bitcoin's price during the September 'crash' to $22K, as negative perceptions can lead to increased selling pressure. The current bear market mindset has caused traders to react cautiously, often ignoring positive developments like potential ETF approvals. Understanding this sentiment is crucial for predicting short-term price movements and identifying potential entry points for investors looking to capitalize on future recoveries.