Bitcoin and crypto stocks sink after last week’s rally

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Bitcoin and crypto stocks sink after last week’s rally

Bitcoin.

Nurphoto | Getty Images

Bitcoin and crypto stocks retreated on the final trading day of September, following a rally last week, but are still poised to post a positive month.

The flagship cryptocurrency was last lower by 3.5% at $63,612.63, after briefly reclaiming the $65,000 level last week, according to Coin Metrics. Crypto stocks such as Coinbase fell 3% in premarket trading and MicroStrategy slid 5%.

Investors are bracing for strikes at ports up and down the East Coast and along the Gulf Coast after midnight Monday, which could shake the economy ahead of the holiday season.

data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw==

Bitcoin is set to post its best September ever

Analysts have also warned about overbought conditions as bitcoin last week climbed nearly 5% in the five days ending Sept. 27 – as net inflows into global crypto exchange traded products accelerated to their highest level since mid-July. In the same *******, Coinbase and MicroStrategy gained 12% and 21%, respectively. On Friday both stocks jumped 6%.

The combined net buying volume of U.S. bitcoin ETFs last week (16,774 BTC) exceeded a typical one-month supply of newly mined bitcoin (13,500), according to Bitwise-owned ETC Group. This was largely due to the policy reversal by the People’s Bank of China, the firm said.

For the month, bitcoin is on pace to finish its strongest September ever with an 8% gain and its second positive September – historically the cryptocurrency’s weakest month – in a row.

Coinbase is poised for a 4% monthly gain but is down nearly 14% for the quarter. Some analysts see that downtrend continuing in the coming weeks. Meanwhile, MicroStrategy is up 33% for the month and almost 28% for the quarter.

The market is heading into a seasonally strong quarter for crypto and risk assets broadly.

Bitcoin’s narrative is often debated — whether it’s a store of value or a risk asset — but its correlation is currently closer to that of the S&P 500 than to gold, and investors expect it to benefit from rate cuts, clarity following the U.S. presidential election and seasonal and favorable market conditions translating into greater flows into crypto ETFs.

Don’t miss these cryptocurrency insights from CNBC PRO:

This is the hidden content, please

• Sign In
• or
• Sign Up

#Bitcoin #crypto #stocks #sink #weeks #rally

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up