Bitcoin and crypto stocks fell on the ultimate trading day of September after rallying last week, but are still poised for a positive month.
According to Coin Metrics, the flagship cryptocurrency was last down 3% at $63,752.20 after briefly reclaiming the $65,000 mark last week. Crypto stocks Coinbase slipped by 5% and Microstrategy fell by 2%.
Investors are bracing for strikes at ports along the East Coast and along the Gulf Coast after midnight Monday that might rattle the economy ahead of the vacations.
Bitcoin is about to record its best September ever
Analysts have also warned of overbought conditions as Bitcoin rose nearly 5% last week within the five days ended September 27 – as net inflows into global crypto exchange-traded products accelerated to their highest level since mid-July. During the identical period, Coinbase and MicroStrategy gained 12% and 21%, respectively. Both stocks rose 6% on Friday.
The combined net purchase volume of U.S. Bitcoin ETFs last week (16,774 BTC) exceeded the everyday monthly supply of newly mined Bitcoins (13,500), in line with Bitwise-owned ETC Group. This was largely attributable to the Chinese central bank's about-face, the corporate said.
For this month, Bitcoin is on target to finish its strongest September ever with a gain of 8% and its second consecutive positive September – historically the cryptocurrency's weakest month.
Coinbase expects a monthly lack of 1% and is down nearly 18% within the quarter. Some analysts expect this downward trend to proceed in the approaching weeks. Meanwhile, MicroStrategy is up 30% for the month and 25% for the quarter.
The market is heading right into a seasonally strong quarter for crypto and risk assets typically.
Bitcoin's narrative is usually debated – whether it’s a store of value or a risk asset – but its correlation is currently more much like that of the S&P 500 than gold, and investors expect Bitcoin to learn from rate of interest cuts and clarity following the US presidential election Seasonal and favorable market conditions will result in larger inflows into crypto ETFs.
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