In September, Bitcoin and other cryptocurrencies were under pressure as concerns about China’s Evergrande collapse grew. Following China’s statement that private cryptocurrencies were “illegal,” another FUD sell-off ensued.
Some crypto analysts, however, believe that the September pressure has a historical precedent. According to them, what follows is a rally.
According to Michael van de Poppe, CEO and Founder of Eight BV, the September market has been negative for the previous five years in a row. However, the markets appear to have recovered virtually every year since then.
Lark Davis, a crypto investor, agreed that a Bitcoin rise would help top altcoins in the fourth quarter.
Davis also predicted that the Q4 surge would last far beyond the current year. He based his study on Bitcoin cycles that have lengthened from 54 to 75 weeks in prior years.
Davis went on to examine the BTC supply charts and concluded that Bitcoin is likely to become scarce. According to him, the supply peaked in 2020, and it will now be more difficult for consumers to purchase Bitcoin.
Moving forward, there is anticipation that the first Bitcoin ETF will be approved by the end of 2021. Davis saw it as a possible trigger that might propel the price of Bitcoin higher.
Aside from that, the Ethereum merger, according to Davis, maybe another market booster in Q1 2022. The Ethereum Merge event marks the chain’s official transition to proof-of-stake consensus, which will occur in Q1 or Q2 of next year.
Finally, a defined set of standards for crypto companies can help to boost confidence in the industry. As a result, rulings on pending litigation are another event that might create a precedent for the market.