Bitcoin, the world’s leading cryptocurrency, appears to be facing a challenging September, historically a difficult month for the digital asset. This is due to a combination of factors, including the US Securities and Exchange Commission’s decision to delay its ruling on a Bitcoin spot Exchange-Traded Fund (ETF) and broader macroeconomic concerns.
Noelle Acheson, the author of “Crypto is Macro Now,” warns that an expanding US budget deficit may lead to increased debt issuances, but the confluence of lower global demand for American government debt and the central bank’s efforts to reduce its balance sheet holdings could result in a shortage of buyers. This could potentially reignite the money-printing days of 2020-21, leading to Bitcoin outperforming stocks given its sensitivity to liquidity, its inverse relationship to the dollar and its detachment from the economic doldrums affecting the world’s large economies.
Bitcoin has a historical pattern of struggling in the month of September, with six consecutive years of poor performance. Tom Essaye, the founder of Sevens Report Research, highlighted the Federal Reserve’s heightened focus on “super-core” inflation rates, which have surged to 3.9% from 3.2% in June. He predicts a more hawkish stance from the Fed, a factor not yet fully priced into the financial markets and the cryptocurrency sector.
Anthony Pompliano, a Bitcoin bull, believes that two potential shocks in the coming months could reignite a bull market reminiscent of 2020. He anticipates that regulators will eventually approve a spot-based Bitcoin ETF, providing a significant boost to BTC accessibility and adoption. Moreover, he suggests that the approval of a Bitcoin ETF coinciding with the next BTC halving, estimated to occur in April 2024, could propel Bitcoin into a full-blown bull market.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Tom Essaye, Noelle Acheson, Anthony Pompliano |
| Companies | US Securities and Exchange Commission, Corporate Finance Institute, SEC, Blockworks, Federal Reserve |
| Currencies | Ethereum, Bitcoin, US Dollar |
| Securities | None |
