September Storm Warning: Why Crypto Traders Should Buckle Up for Volatility

Crypto's calm summer is about to break. September's historical volatility spikes could shake out weak hands—just as institutional players start stacking sats.

Here's what's brewing:

Macro meets crypto: Fed meetings collide with Bitcoin's seasonality. Traders are hedging like it's 2021 again.

Liquidity crunch incoming? Thin August volumes set the stage for exaggerated moves. Market makers are adjusting their algos.

OTC desks report whales accumulating—smart money smells opportunity in the chaos.

Remember: The same traders crying 'manipulation' will be front-running retail when the squeeze comes. Such is crypto's beautiful hypocrisy.

Understanding the Crypto Cycle

By the time this piece was written, Bitcoin (BTC)$115,271 was priced at $115,300, while ethereum (ETH)$3,688 approached $3,700. It’s a favorable day for numerous altcoins as they register gains exceeding 3%. Should these gains against Bitcoin persist, we might witness further ascents in altcoin values. Bob Loukas has shared insights on the cyclical patterns of the market, issuing a cautionary note for September.

“BTC has retested the highs of the May cycle, potentially marking the end of this 60-day cycle. In most cycles, retests or lower lows occur, but given the current bull market phase, reliance on these trends might be misleading. Following strong gains towards the end of August, anticipation is set for the onset of a weekly cycle decline in September.”

This period signals the possibility of experiencing one more significant upswing before an expected decline. Bob’s perspective indicates a crucial watch period, especially if economic indicators like inflation and employment data remain unfavorable; this could bolster his viewpoint.

September holds the potential of being a critical month, potentially driven by altcoin ETF approvals. Recent claims suggest the SEC has been working on the regulatory framework for these collective approvals. Time will tell if true, though SEC Chair Atkins recently indicated a willingness to approve listings by asserting most altcoins are not securities.

The Intricacies of Crypto ETF Flows

Fear, anticipation, risks, losses, and gains FORM the fabric of the crypto market‘s dynamic cycles. Where rewards exist, so do amplified risks, with the crypto market’s risk/reward cycles swiftly fluctuating.

Recently, Kyle has brought attention to evolving institutional demand trends in the cryptocurrency space.

“Funds worth $223 million have been withdrawn from crypto, overshadowing the initial $883 million influx at week’s start. BTC experienced the most significant hit with a $404 million outflow. ETH recorded positive inflows for the 15th consecutive week, with $133 million. Meanwhile, XRP, SOL, and SEI are subtly drawing capital. Is this a risk-off MOVE or a concealed reallocation?”