Here Is Why September Is A Crucial Month For Crypto

September could very well be pivotal for the cryptocurrency market with significant events like presidential debates and Federal Reserve decisions scheduled. Historically, September has been challenging for cryptocurrencies. In September 2023, Bitcoin (BTC) dropped to between $26,000 and $27,000. The same trend occurred in 2022, when the flagship crypto fell to $18,000 and fluctuated around $22,000 during a market decline.

Upcoming Key Events

Notably, after reaching its peak in 2021, Bitcoin also decreased to a range of $41,000 to $48,000 in September. This year, several forthcoming events could influence the broader crypto market. The Bureau of Labor Statistics is set to release a jobs report on September 6th, which could impact the crypto market. Previous reports have shown the potential to move crypto prices, as evidenced by the decline in Bitcoin and Ethereum (ETH) following the August report.

Additionally, a presidential debate between Vice President Kamala Harris and former President Donald Trump is scheduled for September 10th. This event might influence the crypto industry given the differing cryptocurrency policies of the candidates, with Trump advocating heavily for Bitcoin and claiming he will fire Gary Gensler if re-elected.

Interest Rate Decision Looms

Another significant development is the Federal Reserve finally making a decision about the interest rates, which is expected on September 18th. The market anticipates a rate cut of 25 to 50 basis points. Brian Dixon, CEO of OTC Capital, noted that while 67.5% of market participants foresee a 25 basis point cut, a larger reduction could have a negative impact on the market.

Furthermore, the introduction of euro-backed stablecoins, such as EURI and EURC, is on the horizon in Europe. Considering past volatility, September could prove to be a crucial month for the cryptocurrency sector, though the exact market response will become clear only after evaluating the outcomes of these significant events.