As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull and bear runs, and September’s notorious reputation for being “Rektember” is nothing new to me. The consistent pattern of poor performance by digital assets during this month is well-documented, and it seems Bitcoin and its related ETFs are once again feeling the heat.
In the past few days, there hasn’t been an increase in the inflow of funds for U.S.-based Bitcoin exchange-traded funds (ETFs). Instead, these ETFs have collectively experienced a net outflow of approximately $1.2 billion over the last eight days.
Over the past period, we’ve seen a prolonged trend of Bitcoin ETFs experiencing consecutive withdrawals, marking their longest run since their debut in early 2024.
As per recent information from Bloomberg, a significant amount of funds were withdrawn from the twelve Bitcoin ETFs that are publicly traded over the period from August 30 to September 6, by investors.
It’s worth noting that the significant decrease in Bitcoin (BTC) price seems to align with a massive outflow. Despite reaching an all-time high of $64,668 on August 26, BTC has experienced a steep drop of more than 17%, reaching a low of $53,491 on September 7.
September’s Rektember Trend Haunts BTC Prices
Despite some investors feeling uneasy due to the drop in Bitcoin’s price, it isn’t unexpected for those well-versed in the crypto market, as September has typically presented difficulties. This is a pattern that even financial analysts acknowledge.
Due to Bitcoin and other digital assets demonstrating a recurring trend of subpar performance over multiple years, the crypto community has given September the nickname “Rektember”. This label signifies that September tends to have a negative impact on investors’ portfolios, yet optimism for recovery remains high in October.
As a researcher exploring the dynamics of the cryptocurrency market, I find myself looking forward to October, often referred to as “Uptober” within the crypto community. Historically, this month has presented a more optimistic outlook for the market.
Bitcoin ETFs Continue to Dominate Despite Outflows
Remarkably, Bitcoin ETFs still lead the ETF sector, even with recent withdrawals. It’s worth mentioning that the market has witnessed an extraordinary increase in new listings during 2024, with a whopping 400 new ETFs introduced this year alone.
Among all Exchange-Traded Funds (ETFs), four of the biggest ones specialize in Bitcoin. These include BlackRock’s iShares Bitcoin Trust, known as IBIT, and Fidelity’s Wise Origin Bitcoin Fund, denoted as FBTC. Moreover, information from The ETF Store indicates that 10 ETFs focused on Bitcoin are among the top 25 ETFs in terms of investment inflows.
As September persists in affecting Bitcoin and related ETFs’ prices negatively, there’s optimism within the financial community for a quick recovery. Additionally, considering that October has traditionally been favorable to cryptocurrencies, many are confident that Bitcoin will recover some of its lost worth over the next few weeks.
When Bitcoin’s price increases, as is typical, Exchange-Traded Funds (ETFs) associated with cryptocurrency might start to reverse their current trends, potentially attracting investments once more.
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2024-09-09 16:12