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Bitcoin tends to fall in September.
Dreamstime
The hot summer of cryptocurrencies shows no signs of cooling.
Bitcoin
(BTC) traded around $ 50,500 on Friday, up 1.7% in 24 hours, with a gain of more than 30% over the past month.
Ethereum
(ETH) hit record highs with a 5% gain, surpassing $ 4,000 for the first time. Other crypts are also being collected: Solana (SOL),
Litecoin
(LTC) and Avalanche (AVAX) had gained more than 10% in the last 24 hours.
The rally increases stocks related to cryptocurrencies, even as regulatory pressure increases at both the state and federal levels.
Coinbase
On Friday the global (ticker; COIN) rose 2%. He
ETF Global X Blockchain
(BKCH), a basket of cryptography-related companies, advanced 4.3%.
Bitcoin seems to have surpassed the technical resistance at $ 50,000. Its next resistance level is $ 58,000, according to Fundstrat Global Advisors.
It seems that some large investors are buying more Bitcoin. Bill Miller, the veteran value fund manager, had amassed 1.5 million shares of the
Bitcoin Trust grayscale
(GBTC) to his
Miller Opportunity Trust
mutual fund (LGOAX), according to the presentation of securities. This equates to approximately 1,400 underlying Bitcoin tokens, worth about $ 70 million at recent prices. However, the fund has not performed well this year, gaining 10% and lagging behind 98% of its peers, according to Morningstar.
Meanwhile, Ethereum is benefiting from a technical update to its underlying network a month ago. According to Fundstrat, more than 180,000 ETH tokens – some $ 720 million at recent market prices – have been “burned” or withdrawn from supply since then, prompting pressures that could raise the price.
Cryptographic apostles like Jack Dorsey, CEO of Twitter (TWTR) and Square (SQ), are expanding their investments with the goal of creating crypto-related revenue streams. Dorsey said on Twitter last week that Square is building an “open platform decentralized exchange” for Bitcoin. The platform, called TBD, will facilitate the financing of an unguarded Bitcoin portfolio anywhere in the world, expanding access from current encryption ramps such as Square’s Cash App or Coinbase, according to a tweet from Mike Brock, who leads the project for Square.
Some small banks are also getting into cryptography. Oklahoma-based Vast Bank has become the first federally contracted lender, backed by Federal Deposit Insurance Corp., which offers cryptography, according to Vast CEO Brad Scrivner. The bank offers encryption transactions in a mobile app, acts as a custodian and offers insurance on encryption assets through Coinbase.
However, financial investments are taking place in the face of a tougher regulatory climate. U.S. top securities regulator Gary Gensler, chairman of the Securities and Exchange Commission, warns cryptocurrency companies not to launch products or services without first registering with regulators, saying they should not come to “apologize.” after throwing it without doing so.
The SEC has launched an investigation into Uniswap Labs, the developer of one of the largest decentralized financial exchanges, or DeFi, according to a report published in The Wall Street Journal. SEC attorneys are seeking information on how investors use Uniswap and its marketing practices, according to the magazine. Uniswap said it is “committed to complying with the laws and regulations governing our industry and to providing information to regulators to assist them in any investigation.”
Gensler also appears concerned about DeFi (decentralized computer networks that can be used for various financial transactions and business transactions), indicating that they could take regulatory action, according to his recent public comments.
State securities regulators are also flipping through and analyzing credit platforms like BlockFi, where investors can get high returns with their digital assets. New Jersey regulators have ordered BlockFi to stop offering new interest-bearing accounts, even though the effective date has been postponed to Sept. 30.
BlockFi said in a statement that it considers its accounts to be “lawful and appropriate for cryptography market participants.”
Bitcoin prices may be due for a break. According to Fundstrat, September has been the only month with a negative average return since 2011. Cryptography has fallen by an average of 7% per month. Prices have recovered historically since then, with an average rise of 13% in October, 53% in November and 14% in December.
The pattern is one of the reasons why Fundstrat urges investors to consider setbacks as buying opportunities.
“We continue to maintain a bullish stance for the rest of the year,” his analysts wrote in a note this week. The Fed’s more ingenious stance lately should support broad liquidity for cryptocurrency assets as investors take advantage, Fundstrat says. While data trends can change rapidly, “we believe the setup for a prolonged bullfight remains intact,” he said.
Write to Daren Fonda at [email protected]