How Low Can Bitcoin Still Go In September?

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Last Updated on 18 September 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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In the beginning of this month, we let our light shine on a possible price prediction for Bitcoin by the end of September, and it was pretty bearish.

As the month has just passed it’s halfway point and The Merge was executed without a hiccup, Bitcoin is back down to $20k, having lost 7% for the week. Ether did even worse and lost 17% in the same period.

With the Fed meeting later this week able to drive stocks (and crypto) even further down, we wonder whether it’s a moment to get out or whether it’s cheap to get back in? Let’s have a look.

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2022 overview

Bitcoin started the year at around $48k, coming down from an all-time-high of $69k back in November of last year. When Russia started a war with Ukraine at the end of February and inflation proved higher than in the past few decades, the correlation between stocks and crypto proved right and everything plunged lower.

By the month of May we thought we had seen the worst of it but then the collapse of the Terra and Luna coins brought new worries. Followed by the collapse of several crypto investment companies (3AC or Three Arrows Capital), mass media quickly spoke of a ‘crypto crash’ and the onset of ‘crypto winter’. By June Bitcoin seemed to bottom out at a low of $17k.

As the Wall Street Cheat Sheet teaches us, the moment that all global media is plastered with negative stories (as was the case end of June) about stock and crypto markets is usually a good time to start a rebound. Such was the case in July and by the second week of August Bitcoin had recovered to $25k.

However, with the latest CPI (inflation) data in the US showing that the prices of consumer goods will remain high for the foreseeable future and that the Federal Reserve will be forced to increase interest rates even further, stocks (and crypto) saw another red week in September.

With all that, Bitcoin enthusiasts will be forced to admit that the price predictions of a possible $12k or $16k bottom by the end of September might be accurate after all. This week’s Fed meeting outcome will tell us a lot.