Bitcoin Drops Toward $57.5K, Extends Weekly Loss to 10% at Start of Seasonally Bearish September
2024-09-02

Bitcoin {{BTC}} slumped to near $57,500 on Monday, extending its seven-day drop to over 10%, with the broader crypto market falling in tandem.
BTC shed 1.2% in the past 24 hours, with majors solana {{SOL}}, BNB Chain’s BNB, xrp {{XRP}} and Cardano’s ADA falling as much as 3%. Dogecoin {{DOGE}} lost 5% to lead losses among the largest cryptocurrencies, while the broad-based CoinDesk 20 Index (CD20), a liquid fund tracking the largest tokens, fell 1.88%.
U.S.-listed exchange-traded funds (ETFs) tracking BTC posted total net outflows of $175 million on Friday, extending a losing streak to four days. Ether {{ETH}} ETFs had zero net inflows or outflows despite $173 million in trading volume, data tracked by SoSoValue shows. Traditional markets will remain closed in the U.S. due to the Labor Day holiday.
Some traders noted that BTC’s loss is in line with the bearish seasonality observed in September, but stated that interest-rate cuts by the U.S. Federal Reserve could break the trend.
“September is a historically negative month for Bitcoin, as data shows it has an average value depletion rate of 6.56%,” Innokenty Isers, founder of crypto exchange Paybis, said in a Monday email. “Should the Feds cut the interest rate in September, it might help Bitcoin re-write its negative history as rate cuts generally lead to excessive US dollar flow in the economy – further strengthening the outlook of bitcoin as a store of value.”
Seasonality is the tendency of assets to experience regular and predictable changes that recur during the calendar year. While it may look random, possible reasons range from profit-taking around tax season in April and May, which causes drawdowns, to the generally bullish “Santa Claus” rally in December, a sign of increased demand.
“Overall, the macroeconomic indices, spot Bitcoin ETF adoption, and favorable hashrate might make September a relatively better month for BTC this quarter,” Isers wrote.