Bitcoin faces 'seasonal slog' with few short-term price catalysts

Bitcoin (CRYPTO:BTC) investors might be in for a tough September, as the digital currency enters what experts call a "seasonal slog." 

According to a recent market update from NYDIG, a Bitcoin financial services firm, the outlook for significant short-term price drivers is bleak. 

"Unfortunately, potential upcoming near-term catalysts for Bitcoin are sparse at the moment," wrote Greg Cipolaro, NYDIG's global head of research, on September 10. 

Cipolaro noted that any potential movement for Bitcoin in the coming weeks would likely be driven by external economic factors rather than events specific to the crypto space. 

“Most catalysts have to do with macroeconomic data (inflation, unemployment, GDP growth) or monetary decisions (FOMC interest rate decisions) and very few are crypto or Bitcoin-specific,” he said. 

The cautionary note comes even as Bitcoin managed to rise over 3% on September 9, buoyed by a strong performance in the broader stock market, including gains in the S&P 500 and Nasdaq. 

Still, September has not been kind to Bitcoin historically. 

Data from NYDIG points out that the month typically delivers an average loss of 5.9% for Bitcoin, making it the worst month for the cryptocurrency over the past 13 years. 

Looking further ahead, there is some hope for a turnaround. 

The fourth quarter has generally been more favorable for Bitcoin, with October and November historically posting average gains of 16.1% and 40.6%, respectively. 

But, as Cipolaro warns, the looming U.S. presidential election could add a layer of unpredictability to the market. 

“We won’t guess as to which candidate might win the election, but November might be a pivotal moment for the industry," Cipolaro remarked. 

"Until that time, however, Bitcoin might be at the whims of the broader market backdrop.” 

As the election nears, the crypto market could see heightened volatility, driven by economic data and investor sentiment rather than Bitcoin-specific news. 

At the time of writing, the Bitcoin (BTC) price was $56,783.83.