Bitcoin
and other cryptocurrencies plunged Friday, beginning what is historically the worst month of the year for crypto on the wrong foot after bad news on the regulatory front undid gains from a recent rally. History says this is just the start of a bad September.
The price of Bitcoin has fallen 4% over the past 24 hours to $26,000, having traded around $27,500 before news Thursday that the Securities and Exchange Commission had delayed decisions on spot Bitcoin exchange-traded fund (ETF) applications.
The largest digital asset had rallied earlier in the week up to $28,000 following a court ruling that had looked to pave the way for the approval of a spot Bitcoin ETF, long heralded as a critical catalyst for crypto markets. But those gains are now gone.
“Bitcoin ended August down 11% at $26,000, its worst performance since last November,” said Alex Kuptsikevich, an analyst at broker FxPro. Bitcoin’s fall in November 2022 came after the collapse of crypto exchange FTX, a catastrophic development for token markets that only a tough August 2023 was able to compete against.
History suggests it gets worse. September is typically the worst month of the year for Bitcoin, just as it is for the
Dow Jones Industrial Average
and
S&P 500
in the stock market. Bitcoin has fallen in each of the past six Septembers, and has averaged a decline of 6% in each September on record, according to Dow Jones Market Data.
“Bitcoin’s 200-day average is now acting as a resistance … a drop to $24,700 looks like an impressive short-term target for the bears,” said Kuptsikevich.
Beyond Bitcoin,
Ether
—the second-largest token—lost 4% to below $1,650. Smaller cryptos or altcoins were also weak, with
Cardano
crumbling 3% and
Polygon
plunging 6%. Memecoins were unspared, with
Dogecoin
down 4% and
Shiba Inu
shedding 2%.
Write to Jack Denton at [email protected]
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