While Bitcoin (BTC) is still on track to end its six-year losing streak in September 2023, a minor setback ahead of a federal government shutdown could jeopardize this month's progress.
The largest cryptocurrency by market cap changed hands at USD 26,800 during Friday afternoon hours, posting a 3.2 percent return in September so far. However, BTC has fallen 1.6 percent from the USD 27,400 it touched briefly on Thursday.
Extending this weak price action into the weekend could jeopardize BTC's temporary positive monthly returns as the crypto started September at just around USS 26,000.
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Examining Bitcoin Price Prospects Amid US Government Shutdown Sentiment
by Elga Nurmutia updated 30 Sep 2023, 20:48 IWST
Bitcoin illustration. Liputan6.com/Mochamad Wahyu Hidayat
The potential closure of the United States (US) government or government shutdown could disrupt bitcoin prices. Liputan6.com/Mochamad Wahyu Hidayat
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Liputan6.com, Jakarta - While Bitcoin (BTC) is still on track to end six consecutive years of losses in September 2023, a small setback ahead of the federal government shutdown could jeopardize this month's progress.
The largest cryptocurrency by market cap changed hands at USD 26,800 during Friday afternoon hours, posting a 3.2 percent return in September so far. However, BTC has fallen 1.6 percent from the USD 27,400 it touched briefly on Thursday.
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Extending this weak price action into the weekend could jeopardize BTC's temporary positive monthly returns as the crypto started September at just around USS 26,000.
Ether (ETH) traded mostly flat around USD 1,660, as market participants anticipated a futures-based exchange-traded fund (ETF) to launch early next week.
Ripple's XRP, Solana's SOL, and the Tron network's native token TRON posted gains of 3-5 percent, outperforming the broader digital asset market. The CoinDesk Market Index (CMI) fell 0.5 percent.
"Oppressive macro uncertainty remains a major obstacle," Macro Analyst Noelle Acheson, quoted from Yahoo Finance, Saturday (30/9/2023)
He said bond markets around the world are showing signs of pressure, as yields have hit multi-year records in the United States, Britain, Germany and Japan, among many other markets.
US Government Shutdown Adds Uncertainty
According to him, the approaching US government shutdown added to uncertainty and noted that US consumer spending growth in the second quarter was revised lower, an indication that consumers may not be so resilient to tightening financial conditions.
“While this may sound scary, during the 21 government shutdowns [in the past], the S&P 500 rose 55 percent, generating an average return of 0.3 percent,” advisory firm Asgard Markets wrote in a market report on Friday.
Digital asset investment firm NYDIG said the government shutdown could delay regulatory decisions, as the US Securities and Exchange Commission (SEC) staff will be drastically reduced.
"Bitcoin spot ETFs will have to wait until SEC employees return from possible leave," wrote Greg Cipolaro, head of research at NYDIG, in the report.