<\/p>\n
Bitcoin could be headed for a historically low month \u2014 particularly given some volatile macroeconomic factors.<\/p>\n
August\u2019s final trading day saw bitcoin give up its gains Thursday on news that the US Securities and Exchange Commission once again delayed decisions<\/a> on a bitcoin spot ETF.<\/p>\n More broadly, September has been a red month for bitcoin for the past six years. The S&P 500 similarly struggles at the end of the summer, averaging a 3.2% loss in September for the past five years.\u00a0<\/p>\n \u201cEven in 2021, during the final upward leg of the last bull cycle, [bitcoin] (BTC<\/a>) lost 7% in September only to gain 40% the following month,\u201d Noelle Acheson, author of Crypto is Macro Now and former head of market insights at Genesis, wrote in a newsletter Friday.\u00a0<\/p>\n \u201cTimes are different now, however. In September 2021, bond yields were around 1.1%, the S&P 500 was up a whopping 40% year-to-date, risk sentiment was high and BTC had already gained over 60% since early January,\u201d Acheson added.\u00a0<\/p>\n The Federal Reserve is scheduled to release its next interest rate decision<\/a> on Sept. 20, along with the central bank\u2019s summary of economic projections. Markets are currently pricing in 93% probability that the Fed will opt for another pause and keep interest rates where they are, around 5.25%.\u00a0<\/p>\n Last month, Fed Chairman Jerome Powell reiterated that the economy is proving more resilient than central bankers originally anticipated. He suggested more aggressive rate increases might be necessary down the line.\u00a0<\/p>\n \u201cSince inflation exploded last year, the Fed has been more closely focused on the so-called \u2018super-core\u2019 inflation rate, which is Core Services PCE less Housing,\u201d said Tom Essaye, founder of Sevens Report Research. \u201cThat figure jumped considerably to 3.9% from 3.2% in June.\u201d<\/p>\n The Fed will lean hawkish, Essaye predicted, which markets and cryptos have not yet priced in.\u00a0<\/p>\n Crypto investors should also keep an eye on the growing US budget deficit, Acheson advised. An increased deficit means more debt issuances, but with lower global demand for American government debt and a central bank that\u2019s trying to cut its balance sheet holdings, buyers could be in short supply.<\/p>\n \u201cTrue, the Fed could be encouraged to change its strategy in case of urgent need, in which case we would be back to the money-printing days of 2020-21,\u201d Acheson said. \u201cThis should lead to a scenario where yet again BTC outperforms stocks given its sensitivity to liquidity, its inverse relationship to the dollar and its detachment from the economic doldrums affecting the world\u2019s large economies.\u201d\u00a0\u00a0<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Bitcoin could be headed for a historically low month \u2014 particularly given some volatile macroeconomic factors. August\u2019s final trading day saw bitcoin give up its gains Thursday on news that the US Securities and Exchange Commission once again delayed decisions on a bitcoin spot ETF. More broadly, September has been a red month for bitcoin […]<\/p>\n","protected":false},"author":2,"featured_media":146874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-146873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/146873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=146873"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/146873\/revisions"}],"predecessor-version":[{"id":146876,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/146873\/revisions\/146876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/146874"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=146873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=146873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=146873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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