The worst month for Bitcoin historically has been September (BTC). Over the past five years, the original cryptocurrency has experienced an 8.5% monthly price decline in September on average

However, there might be some good news for cryptocurrencies this month. A positive market trigger might be the eagerly anticipated update to the Ethereum 2.0 network, often known as the Merge to a proof-of-stake system.

A positive market trigger might be the eagerly anticipated update to the Ethereum 2.0 network, often known as the Merge to a proof-of-stake system. Ethereum has outperformed Bitcoin by 16% since the beginning of June.

The merger is anticipated to start on September 6 and end around September 15. By the end of 2022, according to experts, Ethereum's price will have risen above $2,000 if the merger goes down without a hitch.
 

Even though August's price movement in the cryptocurrency market was largely negative, institutional investors are allegedly beginning to delve more deeply into the DeFi sector.

Through a partnership with major cryptocurrency exchange Coinbase, BlackRock, the biggest asset manager in the United States, will make cryptocurrency directly available to institutional investors through Aladdin, BlackRock's investment management platform.
 

Over 200 institutional users, including insurers, pension funds, and banks, use the Aladdin platform. BlackRock currently manages about $8.5 trillion in assets.

The Schwab Crypto Thematic ETF, a brand-new cryptocurrency exchange-traded fund (ETF), was also introduced by Schwab Asset Management in August.
 

The new fund does not aim to invest in cryptocurrencies per se, but rather exposes investors to businesses that might profit from the growth of the global cryptocurrency ecosystem.

MicroStrategy, Marathon Digital, and Riot Blockchain are among the top fund holdings. According to data, crypto addresses holding between $1,000 and $10,000 in Bitcoin started purchasing the decline in the final days of August, according to Marcus Sotiriou, a crypto analyst at GlobalBlock.
 

Despite low consumer interest and liquidity in the cryptocurrency market, Sotiriou speculates that Bitcoin whales may have resumed their accumulation.

Moves to Watch in the September Crypto Market

The Ethereum merger is most likely to have the greatest impact on the cryptocurrency market in September. Investors will also be keeping an eye on a number of other important events, though.

The U.S. Securities and Exchange Commission (SEC) extended its deadline for making a decision on VanEck's proposal to start a spot Bitcoin ETF from August 27 to October 11.

Several Bitcoin futures ETFs have already received SEC approval to trade on significant US exchanges. But the envisioned spot Bitcoin ETF would be a first.

According to Sotiriou, the recent stories about the Ethereum merger and a prospective SEC approval of a spot Bitcoin ETF may be sufficient to revive the sagging cryptocurrency market.
 

Near a time when consumer confidence is at yearly lows, "if the application is approved and we really see the Ethereum merge take place, this might contribute to fresh interest in the cryptocurrency market," Sotiriou claims.

Traders will also be keeping an eye on important economic data and changes to policy in September. On September 13, the United States Labor Department will announce its monthly consumer price index (CPI) inflation measurement.

A further reduction in the CPI rise from 8.5% in July to 9.1% in June could indicate that inflation has indeed peaked. 

On September 21, the Federal Open Market Committee (FOMC) will also announce its most recent decision regarding interest rates and the accompanying monetary policy statement.
 

According to CME Group, the bond market is presently pricing in a 70.5% possibility of a subsequent 75 bps rate hike and just a 29.5% chance that the Fed will only increase rates by 50 bps in September.