Bitcoin and crypto stocks saw a pullback on the final trading day of September, despite a recent rally. The flagship cryptocurrency dipped 3.5% to $63,612.63, following a brief return to the $65,000 mark last week. Meanwhile, notable crypto stocks like Coinbase and MicroStrategy also faced declines of 3% and 5% respectively in premarket trading.
Bitcoin is facing a number of headwinds including low liquidity which is contributing to volatility. U.S. regulators are also heavily scrutinizing the crypto industry.
As the market approaches the holiday season, investors are bracing for possible strikes at ports along the East Coast and Gulf Coast.
Despite the recent downturn, Bitcoin is on track for its strongest September ever with an 8% gain, marking its second consecutive positive September—historically a weak month for the cryptocurrency. In the past week, Bitcoin ETF inflows reached their highest levels since mid-July, driven by a policy reversal from the People’s Bank of China.
Analysts have noted that Bitcoin's recent climb of nearly 5% may indicate overbought conditions. Coinbase is projected to finish the month with a 4% gain, although it has dropped nearly 14% for the quarter. Conversely, MicroStrategy has surged 33% this month and 28% for the quarter.
As the market heads into a seasonally strong quarter for crypto and risk assets, Bitcoin's correlation with the S&P 500 suggests it may benefit from anticipated rate cuts and favorable market conditions following the U.S. presidential election.
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