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With Bitcoiners bracing for one of the worst August months since 2015, the road ahead may be stormy during the dreaded 'Rektember' month. With Bitcoin dropping below the US$20000 on 28 August, the overall market cap dropped under the US$1 trillion mark.
As of 30 August, the overall market cap stood at US$995.52 billion, with an overall market volume of US68.57 billion at 8 AM (GMT +1). As of Tuesday, Bitcoin stood at US$20,454.74 with a trading volume of US$32,75,30,07,190. The fall over the weekend left the Fear and Greed Index back at 27, indicating fear in the market.
What is Recktember month?
Traditionally September month is known as the Rektember month. Rektember is a combination of 'rek', a short acronym used for wreck and September. It is usually seen as the month which has depreciating prices and volumes. Traditionally, September is one of the worst months for crypto and equity markets.
In fact, since 2013, on seven occasions, September has witnessed the colour red. Only in 2015 & 2016 did Bitcoin register gains. Even last year, Bitcoin's monthly returns stood at a negative 7.03%, and in 2020, they stood at a negative of 7.51%.
In fact, since its November peak of US$69,044.77, Bitcoin has lost over -70.4% of its value, according to CoinGecko.
But with 2022 Rektember looming, it may set new records as one of the worst months the leading token has seen. In fact, despite the lull last year, Bitcoin had managed to hold onto US$48830, according to CoinMarketCap. But in contrast to this year, the token has been struggling to breach the US$25000 mark.
Fed Reserve's decisions largely drive BTC's fears
BTC's performance this year has largely been aligned with the Federal Reserve's developments. In fact, its losses have been driven by the fears of a possible rate hike by the US authority to tackle inflation.
Besides, other external factors such as the Russia-Ukraine crisis and the stablecoin crash that the market witnessed in June also played their part in BTC's losses.
Bottomline
Only time will tell whether Bitcoin will mirror its performance of last year. But for now, its investors will be hoping that it can break the resistance level of US$21000 and maintain the mark on a more consistent basis.
But even amid all this, it will be critical for the investors to tread carefully and only take decisions after thoroughly studying the market.
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