Summary:
Bitcoin and crypto stocks retreated on the last trading day of September after a recent rally.
Bitcoin dipped 3.5% to $63,612.63 but is on track for its strongest September ever with an 8% gain.
Notable stocks like Coinbase and MicroStrategy also saw declines of 3% and 5% respectively.
Investors are preparing for potential strikes at ports which could impact the economy.
The recent rally was driven by high ETF inflows and a policy reversal by the Peopleās Bank of China.
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 Septemberāhistorically 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 Peopleās 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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