Bitcoin Joins Wall Street in 'Red September' Curse

Bitcoin has closed eight of its last thirteen Septembers in the red, averaging a 2.97% loss. The S&P 500 has also averaged a loss in September since 1945, with researchers at Yardeni tracing the pattern back to 1928.

This 'Red September' phenomenon is not unique to Bitcoin or the crypto market. The leading theories for Wall Street's version of this curse include mutual funds closing their fiscal year on October 31 and selling losers in September, institutional desks returning from summer break and executing deferred de-risking, and the Fed's mid-month meeting.

Bitcoin doesn't have a fiscal year or summer vacation, but still joins its hundred-year-old stock index counterpart in this cyclical market pattern. This year's setup is particularly challenging, with the midterm election stacking its own seasonal drag on top of the Fed's possible rate hike.