Bitcoin Faces Bearish September After $751M ETF Outflows and 10% August Drop
Bitcoin (BTC) has been going down steadily since it hit an all-time high of $123,731 on August 14.
Quick overview
- Bitcoin (BTC) has been on a downward trend since reaching an all-time high of $123,731 in August, losing nearly 10% of its value.
- Capital inflows into BTC-backed ETFs decreased significantly, resulting in a loss of $751.12 million over a 31-day period.
- September has historically been a challenging month for Bitcoin, with losses in 8 of the last 12 years, including significant drops during bull cycles.
- Experts suggest that while the current month may see continued downtrends, October and November typically offer better performance for stocks.
Bitcoin (BTC) has been going down steadily since it hit an all-time high of $123,731 on August 14. Over the next few weeks, it lost almost 10% of its value. As we go near the last quarter, what lies ahead for Bitcoin? Let’s dive deep.
In August, capital inflows into BTC-backed exchange-traded funds (ETFs) went down. SosoValue says that during the 31-day period, these investment products lost $751.12 million, which ended a four-month streak of stable inflows that had helped BTC increase in the months before.
September has been one of BTC’s worst months in the past, with prices generally going down and volatility going up. Data shows that the coin has had several red closures in September over the years. For example, it fell 8% in 2020, 7.3% in 2021, and 3.10% in 2022.
This month could see the downtrend return, but it did experience small gains of 4% and 7% in September 2023 and September 2024, respectively. This is because institutional demand is falling and market sentiment is becoming more gloomy.
This is an important event because the asset’s rise to new record highs has been directly linked to the amount of institutional money that has come in since the approval and debut of spot BTC ETFs. As more money flowed into ETFs, BTC’s price momentum grew stronger.
As the market moved into September, experts said that this month has historically been bad for the asset. Data shows that BTC set its monthly high or low within the first 12 days over 80% of the time, and this was generally during periods of significant volatility.
Bitcoin has had its worst month in September, with losses in 8 of the last 12 years, including bull cycles in 2017 and 2021 when it lost more than 7%. Some forecasts say that the price could drop to $100,000 before going back up, but historically, October and November are good months for stocks.
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