Bitcoin.
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Bitcoin Crypto stocks fell on the last trading day of September after a rebound last week, but are still poised to record a positive month.
The flagship cryptocurrency was last down 3.5% at $63,612.63 after briefly regaining the $65,000 level last week, according to Coin Metrics. Cryptocurrency stocks such as: coinbase It fell 3% in pre-market trading. MicroStrategy It fell 5%.
Investors are bracing for strikes at ports along the East Coast and Gulf Coast after midnight Monday, which could shake the economy ahead of the holiday season.
Bitcoin is set to have its best September ever.
Analysts also warned of an overbought situation last week, with Bitcoin rising nearly 5% in the five days to September 27. This came as net inflows into products traded on cryptocurrency exchanges around the world accelerated to their highest level since mid-July. During the same period, Coinbase and MicroStrategy rose 12% and 21%, respectively. Both stocks were up 6% on Friday.
Last week, the total net long volume of U.S. Bitcoin ETFs (16,774 BTC) exceeded the typical one-month supply of newly mined Bitcoin (13,500), according to ETC Group, owned by Bitwise. The company said this was mainly due to a policy reversal by the People’s Bank of China.
This month, Bitcoin is on pace to finish its strongest September on record with an 8% gain, marking its second positive September in a row, historically the weakest month for the cryptocurrency.
Coinbase is forecasting a 4% monthly gain, but is down nearly 14% this quarter. Some analysts expect this decline to continue in the coming weeks. Meanwhile, MicroStrategy is up 33% for the month and nearly 28% for the quarter.
The market is in for a seasonally strong quarter for cryptocurrencies and risk assets overall.
Bitcoin’s narrative is often debated as to 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 that of gold, with investors hoping Bitcoin will benefit from lower interest rates, clarity and gains following the US presidential election. We expect to benefit from this. Seasonal and favorable market conditions are driving more funds into cryptocurrency ETFs.
