Bitcoin Investors Anticipate Rollercoaster Ride as September Volatility Looms and Focus Shifts to Mid-October ETF Decision
Summary:
Bitcoin investors brace for a potentially turbulent ride as historical data shows September is often challenging for the cryptocurrency. Analysts suggest keeping an eye on mid-October for crucial developments with pending Bitcoin ETFs. Material Indicators warns of a possible retracement in Bitcoin's gains. Bloomberg ETF analyst predicts a 75% chance of a spot Bitcoin ETF approval by year-end. Bitcoin's price has fallen 4.5% following a brief surge.
Bitcoin investors should prepare themselves for a potentially turbulent journey in the coming months. While historical data reveals that September has often been a rough period for Bitcoin, two analysts specializing in exchange-traded funds (ETFs) are suggesting that investors keep a close eye on mid-October as the next crucial period to monitor.
According to the data, Bitcoin's returns for September have closed in the negative nine times out of the past 13 years. Notably, popular crypto analyst Will Clemente highlights that September has had the fewest number of months with positive returns and has experienced a streak of negative returns for the past six years.
In addition to this historical trend, monitoring resource Material Indicators has warned of a potential "full retrace" of gains following Grayscale's victory against the Securities and Exchange Commission (SEC). They predict that Bitcoin, as the leading cryptocurrency, may face some challenging times ahead.
However, looking ahead, Bloomberg ETF analyst James Seyffart advises investors to pay attention to mid-October. This period marks the second decision deadline for the SEC concerning seven pending spot Bitcoin ETFs, including applications from BlackRock, Bitwise, Valkyrie, WisdomTree, VanEck, iShares, and Invesco. Seyffart emphasizes that these dates hold significant importance.
On August 30, Seyffart and fellow Bloomberg ETF analyst Eric Balchunas estimated the chance of a spot Bitcoin ETF approval by the end of this year to be 75%. The mid-October deadlines represent the last chance for the SEC to approve these applications in 2023. Seyffart added that delays in the recent round of filings for spot Bitcoin ETFs were widely anticipated, stating that he would have been surprised if they were approved within the initial deadline.
Following the initial surge sparked by the Grayscale news, the price of Bitcoin has experienced a 4.5% decrease over the past 24 hours, currently standing at $26,066 based on data from CoinGecko.
Published At
9/1/2023 6:01:29 AM
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