Bitcoin Investors Brace for Volatility in September and Look Ahead to Mid-October
Bitcoin investors may need to buckle up for a bumpy ride as historical data suggests that September is typically a challenging month for the cryptocurrency. However, two ETF analysts are advising investors to keep an eye on mid-October as the next crucial period to watch.
According to data from the past 13 years, Bitcoin has closed in the red at the end of September on nine occasions. Well-known crypto analyst Will Clemente also highlighted the negative trend in September, noting that it has had the “least number of positive-returning months” and has been on a negative streak for the past six years.
Adding to the cautionary signs, Material Indicators, a monitoring resource, warned that a “full retrace” of the gains made after Grayscale’s victory over the SEC could be in store for Bitcoin. This implies a potential reversal of gains and a challenging period in September.
Looking ahead, ETF analyst James Seyffart at Bloomberg suggests that investors should focus on mid-October. This is because it marks the second decision deadline for the SEC regarding seven pending spot Bitcoin ETFs. The ETFs under consideration are from prominent players in the industry, including BlackRock, Bitwise, Valkyrie, WisdomTree, VanEck, iShares, and Invesco.
Seyffart stated that the upcoming mid-October dates, especially October 16th, are essential to watch. He also noted that delays in the approval of spot Bitcoin ETF filings were expected, and it would have been surprising if they had been approved in the first round of deadlines.
To put it in perspective, Seyffart and fellow Bloomberg ETF analyst Eric Balchunas previously estimated a 75% chance of a spot Bitcoin ETF receiving approval by the end of this year. The mid-October deadlines could be the last opportunity for the SEC to make a decision on spot Bitcoin ETFs in 2023.
After initially surging on the news of Grayscale’s victory, the price of Bitcoin has seen a 4.5% drop in the past 24 hours. At the time of writing, Bitcoin is trading at $26,066, according to CoinGecko.
In conclusion, September poses challenges for Bitcoin investors, as indicated by historical trends and industry experts. However, the focus shifts to mid-October when crucial decisions regarding spot Bitcoin ETFs will be made. Investors are advised to monitor the market closely during this period.
(Source: CoinGlass, CoinTelegraph)