September once again proved to be a frustrating month for the cryptocurrency markets. But as the year comes to a close, historical price analysis suggests that the next quarter could generate much better returns.
In our last report new quarterThe Kraken Intelligence team examines why the latest Chinese crypto ban is a tailwind for Bitcoin in the long run. Additionally, the team analyzes a number of on-chain metrics and trends that indicate demand remains strong and the market is well positioned to move higher towards the end of the year.
Bad month for bitcoin
In our latest report, we warned that September has historically generated negative returns. On its average, Bitcoin snapped a two-month winning streak that ended 7% in September. After the 14th golden cross, some were surprised to see BTC drop by 16% over the next week – pushing BTC below the 50-day and 200-day moving averages. What followed was a re-circulation of the crypto ban in China, which certainly didn’t help. As rough as September, history tells us that BTC returned an average of 119% in the fourth quarter, while its historical average return is 58%.
Ethereum On . career
Despite having many eyes on Bitcoin, interest in ETH remained flat in September. Two months into the London split, the intended effects remain clear and interest continues to gravitate toward the ecosystem. In the last month, 405,000 ETH was issued, with another 250,000 burned – reducing issuance by 63%. In addition, the popularity of the ETH 2.0 contract has skyrocketed as nearly 7.79 million ETH has been hoarded by nearly 53 thousand entities (up 8% and 10% month over month, respectively).
clear cipher scene
Elsewhere in the cryptocurrency industry, interest and demand for other Layer 1 blockchains have continued. Solana’s investment products saw inflows of more than $60 million in September and the chain became the most mortgaged Tier 1 blockchain with 77% of the coins in circulation. NFT activity on the network surged and two Solana-based NFT pools surpassed $100 million market caps — rivaling many of the largest Ethereum-based NFT pools.
Alonzo launched the expected hardfork from Cardano with some incorrect assertions about transaction limits and number of users. However, demand for ADA rebounded after it was announced that Cardano smart contract developers can now use Chainlink Oracles to securely transfer data off-chain.
Do you want to know more about what happened and what is the future? Download the Kraken Intelligence Report new quarter To understand why the cryptocurrency will rise in the next few months.
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