Bitcoin posted its first quarterly loss of the year at the end of September
In its first quarterly fall this year, Bitcoin is set to end the quarter on a negative note as September draws to a close.
The most valuable cryptocurrency by market cap has decreased by nearly 11% since June and last traded in New York on Saturday at about $26,970. It increased 83% in the first half of this year after falling 64% in the previous six months as a result of scandals and bankruptcy that rocked the digital asset sector in 2022.
Since the end of the second quarter, Bitcoin has been stuck in a constrained trading range due to an unreliable macroeconomic forecast. Last Wednesday, the Federal Reserve left interest rates unchanged but gave the impression that they will stay higher for longer. Higher rates usually make risky assets less appealing.
According to Hosam Mahmoud, a research analyst at CCData, “The Federal Reserve‘s hawkish stance has increased investor apprehension, leading to declines in both traditional and digital asset markets.”
Investors removed about $500 million from cryptocurrency products during the nine weeks that ended in mid-September, according to a CoinShares analysis. Bitcoin accounted for $45 million, or 85%, of outflows.
Just days after delaying decisions on Ark 21Shares and GlobalX until January, the U.S. Securities and Exchange Commission postponed decisions on BlackRock Inc.’s spot Bitcoin ETF proposals on Thursday.
According to Peter Tchir, head of macro strategy at Brean Capital, “Current investors got very excited about the possibility of a Bitcoin ETF spurring a new wave of demand.” “A few years ago, it would have been quite helpful since owning cryptocurrency was challenging, but now it’s not really that challenging. It still has yet to happen, and there may be some skepticism about when it will, at least in the near future.
However, some proponents of Bitcoin are forecasting a surge similar to the one that occurred in response to the regional bank crisis earlier this year as a result of the growing likelihood of a U.S. federal government shutdown. Three small- to mid-sized U.S. banks failed in a span of five days in March, causing Bitcoin to increase by about 25% over a month.
According to Will Tamplin, senior analyst at Fairlead Strategies, “There are indications that Bitcoin’s corrective phase is maturing. It has broken through the 50-day moving average and has gained momentum as a result of oversold conditions.
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