Stock markets crumble while Bitcoin remains steady
Last Updated on 6 November 2023 by CryptoTips.eu
While we feared a decline for Bitcoin at the beginning of this month, it turns out that this was not really necessary now that we’re approaching the end of a traditionally bad month of September.
Global stock markets are having a bad month so far, but Bitcoin consistently refuses to go below $25,000.
Investment month
Historically, September has always been a bad investment month, for both stock markets and Bitcoin. It is therefore all the more striking that if we look at the price development of the AEX, for example, we find that September has resulted in a decline of about 3% (so far). In the United States, the S&P was down about 5% during the month of September until last night, making for the first negative quarter for the American stock market in the past twelve months.
This is mainly due to the message from the Federal Reserve that higher interest rates will probably have to remain for a longer period of time. Although inflation rates in most Western countries are now between 2 and 3%, Jay Powell (the chairman of the Federal Reserve) and Christine Lagarde (the president of the European Central Bank) do not want to take their foot off the accelerator yet. First they want to be sure that inflation can remain low if they allow interest rates to fall again.
Bitcoin, meanwhile, is still in good shape with a gain of 62% for the year, mainly due to a very strong first quarter. Meanwhile, it is also clear that the new support line is at $25,000, a level below which Wall Street companies are now also buying Bitcoin, as everyone expects a Bitcoin ETF to be approved before the end of the year.
Ever since Bitcoin rose to $25,000 in March of this year, it has almost never dropped below that price point, despite lawsuits against both Binance and Coinbase by the Fed, a threat of forbidding crypto trading in the US by the White House (which never materialized) and a (recently) declining stock market.
Bitcoin’s not really volatile, but is not suffering from bad news either.
With October, traditionally the best month for bitcoin, just around the corner, it could therefore be a very nice end of the year.
