“September: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, October, April, November, May, March, June, December, August and February.” - Mark Twain
As the US Securities and Exchange Commission (SEC) elected to delay judgments on seven Spot ETF applications, BTC price has erased all gains earned this week. Price is down 4.4% to $26k, has seen over $20 billion in trading volume, while its market capitalisation is barely above $507 billion. The rally of earlier this week wasn’t enough to take us outside the bearish quadrant.
Due to the ongoing delay in ETF approvals, short-term bullish gaming funds have exited. If investors rally behind it and purchase the dip, BTC will attempt another trend reversal from the now key support level of $26k.
The Federal Reserve in the US is likely done raising interest rates after a government report revealed that the unemployment rate rate climbed last month and pay growth slowed. The August unemployment rate was 3.8%, compared to 3.5% predicted and 3.5% last month. BTC was little altered, while traditional markets were mixed.
We'll follow the continuous tango between inflation statistics, economic growth – August jobs data was released today — and Fed rhetoric. With ETF aspirations on hold for the foreseeable future, bitcoin bulls may look to a slowing economy and lower interest rates as a possible catalyst.
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