Stocks and Bitcoin fall at the beginning of the new month

Stock and crypto markets started the first day of the new month in the red after US President Trump announced new import tariffs on most nations around the world. The sea of red began early in the morning in Asia and lasted all day in Europe. Crypto markets also suffered heavy losses.

While Bitcoin managed to limit its losses somewhat, dropping around 3%, altcoins were a different story altogether. Dogecoin, Solana, XRP, and Cardano all fell by 10% at one point.

History

Looking back, we see that Bitcoin has consistently experienced a sharp decline in the second summer month of August for the last three full years (2022, 2023, and 2024). This doesn’t bode well for the coming weeks. Moreover, September is next, which is also a historically depressing month for crypto coins.

Note that with a price above $100,000 for the last three months or so, it wasn’t inconceivable that the largest digital currency would experience a pullback.

Furthermore, if Bitcoin suddenly takes a step back after a period of stable growth, altcoins naturally fall much further. This time was no different.

While many investors were hoping XRP would finally equal its 2018 ATH (€3.80) after coming very close in July, it quickly fell below the €3 level on Friday morning.

As always, the old investor adage, sell in May and stay away, resonates. If that’s true, this drop may just be the beginning of a very deep pullback in the coming weeks.