Santiment, an on-chain analytics company, mentions a historical trend that may benefit specific crypto businesses in a tweet. Due to a decline in bitcoin trading activity, the cryptocurrency market is currently experiencing sluggish buying and selling activity. The total volume of spot and derivatives trading declined 11.5% month over month to $2.09 trillion in August, the second-lowest level since October 2020, reflecting a decline in investor appetite.
This unfavourable prognosis is made worse by the fact that September is often a “crimson month” for cryptocurrencies like XRP and BTC.
According to reports, XRP is experiencing the “Crimson September” paradox, when the ninth month consistently ends in losses. Only four Septembers since 2013 have been favourable for XRP, with the other six being unfavourable.
The largest cryptocurrency by market capitalization, Bitcoin, appears to be in the same situation.
Only two months have seen positive returns for Bitcoin as of September, and BTC is currently experiencing a six-year run of losses. According to the monthly returns graphic, Bitcoin has seen six consecutive “unfavourable Septembers” since 2016.
Here is how things might change
The fifth-largest cryptocurrency, XRP, is down 1.61% so far in September, whereas BTC is only down 0.39%. On-chain analytics company Santiment observed a significant improvement in bearish takes vs. the historical sample created in September. It claims that historically, this was a very important element for afflicted person merchants. It’s because costs often tend to increase when the group is bearish.
“With cryptocurrency markets continuing to be unpredictable, we’ve seen a significant increase in negative takes from the gang here in September. This has historically been advantageous for patient traders. After FUD becomes the majority, there is a higher likelihood of value bounces, Santiment tweeted. BTC was barely down 0.28% in the previous 24 hours to $25,831 at the time of writing; XRP was marginally up 0.28% in the previous 24 hours to $0.502.