Bitcoin.
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Bitcoin Cryptocurrency stocks retreated on the final trading day of September after rising last week, but are still on track to have a positive month.
After briefly regaining $65,000 levels last week, the flagship cryptocurrency was last down 3.5% at $63,612.63, according to Coin Metrics. Cryptocurrency stocks such as Coin library Down 3% in pre-market trading micro strategy down 5%.
Investors were bracing for strikes at East Coast and Gulf Coast ports after midnight Monday that could shake up the economy ahead of the holidays.
Bitcoin is set for its best September ever
Analysts have also warned of overbought conditions. Bitcoin rose nearly 5% last week in the five days to September 27, and net inflows into global cryptocurrency exchange-traded products accelerated to the highest level since mid-July. During the same period, Coinbase and MicroStrategy rose 12% and 21% respectively. Both stocks rose 6% on Friday.
Total net buying of U.S. Bitcoin ETFs last week (16,774 BTC) exceeded the typical one-month supply of newly mined Bitcoin (13,500 BTC), according to data from Bitwise’s ETC Group. The company said this was mainly due to a policy reversal by the People's Bank of China.
For the month, Bitcoin is on track to end September with its strongest performance ever with an 8% gain, marking a second straight September gain – the weakest month for cryptocurrencies in history.
Coinbase was expected to gain 4% monthly but fell nearly 14% for the quarter. Some analysts believe this downward trend will continue in the coming weeks. Meanwhile, MicroStrategy gained 33% for the month and nearly 28% for the quarter.
Cryptocurrency and risk asset markets are entering a seasonally strong quarter.
Bitcoin's narrative has often been controversial – whether it's a store of value or a risk asset – but its correlation is currently closer to the S&P 500 than to gold, with investors expecting it to benefit from interest rate cuts, post-U.S. presidential election Clarity as well as seasonal and favorable market conditions translate into greater inflows into crypto ETFs.