According to New York Digital Investment Group (NYDIG), Bitcoin investors should prepare for a challenging period in September, as this month has historically yielded the poorest average returns for the cryptocurrency. Greg Cipolaro, the global head of research at NYDIG, emphasized in a market update dated September 10 that there are currently few immediate catalysts for Bitcoin (BTCUSD).

Cipolaro pointed out that stakeholders in the Bitcoin market may need to look beyond cryptocurrency itself for potential stimulants, with particular attention to macroeconomic indicators such as inflation rates, unemployment figures, and gross domestic product growth. Furthermore, monetary policy decisions from the Federal Open Market Committee could also play a crucial role, illustrating that the primary drivers of Bitcoin’s performance are not specifically related to the cryptocurrency market itself.

Notably, Bitcoin experienced a slight increase of over 3% in the past twenty-four hours. This uptick can be attributed to positive trends observed in the S&P 500 and the technology-focused Nasdaq, both of which reported gains on September 9.

Historically, September ranks as the most difficult month for Bitcoin; since 2011, the cryptocurrency has shown an average decline of approximately 5.9% during this time. However, past data indicates that the fourth quarter typically offers more favorable conditions for Bitcoin, with October and November registering mean gains of 16.1% and 40.6%, respectively, according to insights from NYDIG.

Cipolaro also noted that the impending presidential election in the United States, scheduled for November, looms as a significant concern for the broader cryptocurrency market. The election introduces a degree of uncertainty given the differing stances on digital assets between candidates. Former President Donald Trump has established a reputation as a pro-cryptocurrency figure, while the position of Vice President Kamala Harris on digital assets remains less clear, potentially leading to increased volatility before the election.

Although Cipolaro refrained from speculating on the election’s outcome, he indicated that November could be a decisive moment for the cryptocurrency sector. In the interim, Bitcoin’s performance is likely to remain influenced by broader market dynamics rather than specific cryptocurrency developments.

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