Bitcoin and Crypto Stocks Plummet After Last Week’s Euphoric Surge: What Investors Need to Know
Bitcoin and crypto stocks experienced a decline on the final trading day of September after a robust rally the previous week. Despite this downturn, Bitcoin is still set to record a positive month. The cryptocurrency’s price dropped by 3%, settling at $63,446.02, after momentarily surpassing the $65,000 mark last week, as per Coin Metrics. In the crypto stock market, Coinbase plunged by 6% and MicroStrategy decreased by 3%.
Investors are bracing for potential economic disruption due to anticipated strikes at ports along the East and Gulf Coasts starting after midnight on Monday, which could impact the economy as the holiday season approaches.
Notably, Bitcoin is on track to achieve its best September ever, despite analysts cautioning against overbought conditions. Last week, Bitcoin surged nearly 5% over five days ending on September 27, with global crypto exchange-traded products experiencing their highest net inflow since mid-July. During the same timeframe, Coinbase and MicroStrategy saw gains of 12% and 21%, respectively, and both stocks rose by 6% on Friday.
According to Bitwise-owned ETC Group, U.S. Bitcoin exchange-traded funds witnessed net buying volume of 16,774 BTC last week, surpassing the usual one-month supply of newly mined Bitcoin (13,500 BTC), a shift attributed to the People’s Bank of China’s policy reversal.
For September, Bitcoin is set to close with an 8% gain, marking its strongest September to date and its second consecutive positive September—a month typically weak for the cryptocurrency.
Contrarily, Coinbase is projected to finish the month with a 1% loss and a nearly 18% decline for the quarter, with some analysts predicting this downtrend will continue. Meanwhile, MicroStrategy has climbed 30% for the month and 25% for the quarter.
As the market enters a seasonally strong quarter for cryptocurrencies and other risk assets, Bitcoin’s role as either a store of value or a risk asset continues to be debated. Currently, its correlation aligns more with the S&P 500 than with gold. Investors anticipate that Bitcoin will benefit from rate cuts, post-U.S. presidential election clarity, and favorable market conditions increasing inflows into crypto ETFs.
Original Story https://www.cnbc.com/2024/09/30/crypto-market-today.html
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