Bitcoin.
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Bitcoin and crypto stocks fell on the last trading day of September, after a rally last week, but the cryptocurrency still had a winning month.
Bitcoin price was last down 3.7% at $63,451.12, after briefly regaining the $65,000 level last week, according to Coin Metrics. In crypto stocks, Coinbase slipped 6.8% and MicroStrategy fell 4.3%.
For the month, Bitcoin completed its strongest September since 2012 with a 7.9% gain and its second positive September – historically the cryptocurrency’s weakest month – in a row. It posted a quarterly gain of 2.8%.
Coinbase ended the month down 2.8% and the quarter down 20%. Some analysts expect this downward trend to continue in the coming weeks. It also posted consecutive quarterly losses for the first time since the first half of 2022 and the worst quarterly performance since the fourth quarter of 2022.
Meanwhile, MicroStrategy is up about 27% for the month and 22.5% for the quarter.
Bitcoin posts its best September since 2012
Analysts warned of overbought conditions as bitcoin last week climbed nearly 5% in the five days ending September 27, as net inflows into global exchange-traded crypto products increased. are accelerated to reach their highest level since mid-July. During the same period, Coinbase and MicroStrategy gained 12% and 21%, respectively.
The combined net volume of U.S. Bitcoin exchange-traded fund purchases last week (16,774 BTC) exceeded the typical month’s supply of newly mined Bitcoin (13,500), according to ETC Group, owned by Bitwise. This is largely due to the People’s Bank of China’s policy reversal, the company said.
Federal Reserve Chairman Jerome Powell spooked investors mid-afternoon on Monday, warning that while more rate cuts are coming, the central bank has no set path. Investors are also bracing for strikes at ports on the East Coast and along the Gulf Coast after midnight Monday, which could shake the economy as the holiday season approaches, as well as data ISM Manufacturing Tuesday.
The market is heading into a seasonally strong quarter for crypto and risk assets in general.
Bitcoin’s narrative is often debated – whether it is a store of value or a risk asset – but its correlation is currently closer to that of the S&P 500 than to that of gold, and the Investors expect it to benefit from rate cuts and clarity following the US presidential election. and seasonal and favorable market conditions resulting in greater flows into crypto ETFs.
—CNBC’s Nick Wells contributed reporting.
