5 Startling Reasons Why September Terrorizes Investors

Let me tell you about the time I nearly got wrecked by the market in September a few years back.

I was confident, thinking I had everything figured out, but the market had other plans.

Prices dropped like a stone, and I was left scrambling.

That’s when I realized—September isn’t just another month in crypto; it’s very often a bearish month!

If you’re not ready, you’re already losing. Here’s why September terrorizes investors and how you can avoid becoming its next victim.

5 Startling Reasons Why September Terrorizes Investors

1. Government Sell-Offs
   Let’s not sugarcoat this—governments are sitting on a mountain of Bitcoin, around $33 billion worth. The U.S. alone has over 200,000 BTC, valued at about $5.2 billion.
   
   If they decide to dump it, the market’s going to bleed. This isn’t just some hypothetical scenario; we’ve seen it happen already.
   
   

   

   Remember when the German government decided to sell their stash of Bitcoin in June, Bitcoin’s price dropped 12% until their selling was over. Source: tradingview

   
   When governments sold off earlier this year, Bitcoin’s price took a hit. You better believe it can happen again.
   
   

2. ETF Outflows
   Wall Street’s love affair with Bitcoin isn’t as romantic as they make it seem. Bitcoin ETFs saw a massive outflow of $455 million in the last week of August 2024.
   
   

   

   Bitcoin ETF Net Inflow. Source: Coinglass

   
   That’s not just a number—that’s your wake-up call. September is historically brutal for stocks, and the crypto market isn’t immune.
   
   When the big players pull out, they’re not just taking money—they’re pulling the rug out from under you.
   
   

3. September Slump
   September has a nasty reputation in the crypto world. Bitcoin has posted negative returns in seven out of the last ten years during this month. On average, the price drops by about 6%.
   
   

   

   Bitcoin performance by month since 2013,. Source: Coinglass

   
   This isn’t just bad luck; it’s a pattern.
   
   And if you think this year will be different, think again. The market is primed to repeat the same old story, and if you’re not prepared, you’re the one who’s going to pay.
   
   

4. U.S. Election Worries
   

   

   
   

   Election years are a circus, and 2024 is no different. Historically, the average market return in election years is a measly 6.1%, lower than in non-election years.
   
   What does that mean for you?
   
   It means the market is going to be jittery, and Bitcoin will feel the tremors. Big money isn’t stupid—they’re waiting until the dust settles.
   
   If you’re charging in blindly, you’re asking to get trampled.
   
   

5. Post-Halving Lull
   Here’s a fact the cheerleaders won’t tell you: After every Bitcoin halving, there’s a dip. This isn’t just some minor blip—it’s a predictable downturn.
   
   After the 2020 halving, Bitcoin dropped by 12% before it climbed back up.
   
   

   

   
   In 2024, we’re seeing the same old story. Bitcoin has been moving sideways since the April halving, and it’s likely to stay that way until the market decides it’s time for the next leg up.

My Take on the Market

Let’s face it—the market’s setting up for a rough ride in September.