U.Today - In a tweet, , an on-chain analytics firm, points to a historical tendency that could benefit patient crypto traders.
The crypto market is currently engaged in lackluster trading action due to a drop in cryptocurrency trading activity. The total monthly volume of spot and derivatives trading fell 11.5% to $2.09 trillion in August, the second-lowest since October 2020, indicating dwindling investor appetite.
Adding more to this negative outlook is the fact that September often presents itself as a "red month" for cryptocurrencies such as XRP and BTC.
As , XRP is facing the "Red September" conundrum, with the ninth month frequently ending in losses. Since 2013, XRP has only had four positive Septembers, with the remaining six being negative.
Bitcoin, the largest cryptocurrency by market capitalization, appears to be in the same boat.
September has had the fewest positive-returning months for Bitcoin at only two, and BTC is currently on a six-year negative-return streak. Since 2016, Bitcoin has seen six "negative Septembers" in succession, according to the monthly returns chart.
Here's how things might flip
XRP, the fifth-largest cryptocurrency, is down 1.61% in September thus far, while BTC is down only 0.39%.Given the historical pattern established in September, on-chain analytics firm Santiment observed a significant increase in bearish takes. Historically, it says, this served as a good thing for patient traders. This is because when the crowd is bearish, prices are more likely to rise.
"With crypto markets continuing their unpredictability, we have seen a big uptick in bearish takes by the crowd here in September. Historically, this is a good thing for patient traders. The probability of price bounces rising after FUD becomes the majority," Santiment tweeted.
At the time of writing, BTC was marginally down 0.28% in the last 24 hours to $25,831; XRP was marginally up 0.28% in the last 24 hours to $0.502.