Bitcoin Price has dropped 7% in September but saw a slight rebound, reaching $54,870 by Monday afternoon in Singapore.US Bitcoin exchange-traded funds (ETFs) are experiencing their longest streak of daily net outflows since their launch at the beginning of the year. Investors withdrew nearly $1.2 billion from these 12 ETFs over eight days through September 6.
According to the withdrawal has been triggered by apprehensions over economic performance indicators such as mixed US employment statistics and deflation in China. Like global shares and commodities, the cryptocurrency market has also been affected due to the unrest.
However, September has not been a good month for Bitcoin as the digital currency has declined by around 7%. But it was able to recover slightly over the weekend and was at about $54,870 as of Monday afternoon in Singapore.
Sean McNulty, director of trading at Arbelos Markets, said that the recent slight recovery of Bitcoin could be partly attributed to some personalities closing their short positions. For instance, Arthur Hayes, one of the co-founders of BitMEX, has recently expressed his market outlook on social media.
Also, Donald Trump’s growing stance in the race for the US presidency may be boosting market sentiment. The community is getting ready for potential fluctuations before the debate between Trump and Vice President Kamala Harris, who has not yet disclosed her attitude to cryptocurrencies.
The US Bitcoin ETFs that started trading in January were expected to propel Bitcoin to new heights and indeed, the cryptocurrency hit a new high of $73,798 in March. Since then, demand has slowed down and Bitcoin’s year to date appreciation has been around 30 percent.
The prolonged outflows from US Bitcoin ETFs highlight growing investor concerns about economic instability. This trend underscores how global market uncertainties are increasingly impacting the cryptocurrency sector.
How the Upcoming NFP Report Could Affect Bitcoin’s Price
Bitcoin’s Bearish Trend Continues
Bitcoin has been in a downtrend since March, and so far, there are no signs of a recovery. However, there are different views on what the future holds.
If the NFP report gives a stronger-than-expected job growth, Bitcoin could see a strong surge with the potential to reach $60,000 or higher.
If this scenario is reversed with the data coming out weaker than expected, Bitcoin price could see a temporary dip to $52,000 or $50,000. At the time of writing, Bitcoin is trading at $56, 143 according to Trading View.
