September’s positive return on Bitcoin was last recorded in 2016.
Although Bitcoin (BTC) is still expected to stop its six-year losing streak in September, this month’s gains may be in peril due to a little retreat ahead of what may be an impending federal government shutdown.
The biggest cryptocurrency by market capitalization saw a 3.2% return so far this month as it traded hands at $26,800 on Friday afternoon. Nevertheless, Bitcoin has lost 1.6% of its value from the $27,400 it briefly touched on Thursday.
Since Bitcoin started September at over $26,000, continuing this negative price action into the weekend could jeopardise the cryptocurrency’s preliminary positive monthly return.
Since market players think that futures-based exchange-traded funds (ETFs) would go online early next week, ether (ETH) traded relatively flat at $1,660.
Outperforming the overall digital asset market, Tron’s native token (TRON), Solana’s SOL, and Ripple’s XRP all saw rises of 3% to 5%. It was a 0.5% decline in the CoinDesk Market Index (CMI).
How will the government shutdown affect cryptocurrencies?
Noelle Acheson, a macro analyst and the writer of the Crypto Is Macro Now newsletter, stated on Friday that “the oppressive macro uncertainty is still a major headwind.” “Yields in the US, UK, Germany, and Japan, to mention a few markets, have reached multi-year records, signalling distress in bond markets around the world.”
She also pointed out that the impending government shutdown in the United States increases uncertainty and that the revised downward estimate of Q2 consumer expenditure growth suggests that Americans may not be as resilient to tighter financial conditions.
In a Friday market analysis, advice firm Asgard Markets stated, “As scary as this may sound, during the 21 government shutdowns [in the past] the S&P 500 rose 55% of the time, generating an average return of 0.3%.”
Due to a significant reduction in the number of employees at the U.S. Securities and Exchange Commission (SEC), digital asset investment firm NYDIG stated that the government shutdown may cause a delay in regulatory decisions.
According to NYDIG’s head of research Greg Cipolaro, “a spot bitcoin ETF will have to wait until after SEC employees come back from a potential furlough.
Bitcoin Slips Below $27000,Bitcoin Slips Below $27000
What is the future price of bitcoin (BTC)?
However, in contrast to the current stock market sell-off, cryptocurrency markets performed admirably. For risk assets in Q4, Asgard has a more positive outlook, notwithstanding the challenging macro environment.
“Asgard stated that Bitcoin and Ethereum are currently attempting to break higher above the range that they have been in for the past month and a half.” As long as Bitcoin does not retreat below 26,000, we anticipate a short-term move between $28,500 and a potential high of $30,000.
In the past, October has been a positive month for bitcoin, according to Markus Thielen, Head of Research at Matrixport, who was recently on CoinDesk TV.
He noted that “eight of those times in October over the last ten years, the market was actually up with an average of 22%,” and he predicted that bitcoin would “break out quite aggressively” as soon as interest rates started to decline.
Additionally, Thielen contended that miners of bitcoin, especially Marathon Digital, are starting the upcoming quarter with far more effective operations.
Everyone is still thinking about the halving, though, as Thielen reports that Marathon Digital predicted their mining expenses will rise from $24,000 to $29,000 per bitcoin.
Bitcoin Slips Below $27000,Bitcoin Slips Below $27000