Bitcoin's Rough August Wiped Out Summer Rally; What September Might Bring

There are few things more insufferable in financial markets than seasonal indicator discussions. The grandaddy may be "sell in May, then go away," which gets dragged out every spring, but probably hasn't been a valid signal since the days of Jesse Livermore, when traders literally sold in May and then headed to the beach for the summer. A set of seasonal indicators have developed around crypto even as the markets — just a few years old — have far too few observations for anything to be statistically valid. Among the favorites is that August tends to be rough month for prices. Credit where it's due, though — the seasonality fans got it right this time, at least for bitcoin (BTC). Despite continuing inflows in spot ETFs, Federal Reserve Chairman Jerome Powell flipping from hawk to dove, and touching a new record high, bitcoin (with just a few hours left to go), has slipped 8% this month. At just above $108,000 bitcoin has also declined about 13% since hitting that new record above $124,000 on Aug. 13. The selling has wiped…