Crypto News: Market Update September 2023
September 2023 was relatively calm, but a few notable events are worth mentioning. It is not often that Bitcoin has a positive month compared to the stock markets, but in September 2023, this was indeed the case. Below is a summary of the key financial events from the past month.
September 1: Strong Job Growth in August Exceeds Expectations
On September 1, the Nonfarm Payrolls and unemployment figures for August 2023 were released, both exceeding expectations negatively. This surprising news dampened investor sentiment and increased expectations for a possible interest rate hike by the Federal Reserve. (Source: CNBC)
September 6: Cathie Wood’s Ark Investment filed an application for an Ethereum ETF.
On September 6, 2023, Ark Investment filed a historic application for its first-ever U.S. spot Ethereum ETF, marking a milestone in the acceptance of digital assets. This move had an immediate impact on Ethereum’s price and promoted the acceptance of cryptocurrencies as investment assets. Currently, a significant number of financial institutions have applications for spot/futures Ethereum ETFs pending. (Source: Reuters)
September 13: Consumer Price Index (CPI) for August 2023 in line with expectations.
On September 13, the Consumer Price Index (CPI) for August 2023 was released, with the figures aligning with analysts’ expectations. This news led to instability in the financial markets and indicates that inflation will continue to be an issue for the time being, increasing the likelihood of further interest rate hikes in the future. (Source: CNBC)
September 20: The Federal Reserve maintained the interest rate at 525 basis points (5.25%)
On September 20, the Federal Reserve announced that it would keep interest rates unchanged at the current level. This decision was in line with analysts’ expectations. Chair Powell indicated that inflation has still not reached the desired level of 2% per year. Furthermore, he warned investors that if inflation and unemployment figures remain at this level, multiple rate hikes may be necessary. (Source: CNBC)
September 28: the Gross Domestic Product (GDP) for Q2 remained on course as expected.
On September 28, the growth figures for the U.S. Gross Domestic Product (GDP) in the second quarter were released, with the results aligning with analysts’ expectations. These figures confirmed economic growth and bolstered investor confidence. Despite this growth, it is not the scenario the Federal Reserve had hoped for with the current interest rate, as the economic expansion increases the likelihood of future rate hikes. (Source: Reuters)
On September 29, 2023, it was reported that crypto whales hold over 66% of the total Bitcoin supply.
On September 29, it was reported that large crypto investors, known as ‘crypto whales,’ hold over 66% of the total Bitcoin supply. This news attracted the attention of both investors and experts, as it suggests that the supply of Bitcoin is becoming increasingly scarce, which could positively impact the price in the future, especially if demand rises again. (Source: Binance)
September 29: The SEC delayed the Bitcoin ETF proposals from BlackRock and Valkyrie
On September 29, 2023, the U.S. Securities and Exchange Commission (SEC) announced that it had delayed the approval of Bitcoin Exchange-Traded Funds (ETFs) from both BlackRock and Valkyrie. This delay has drawn the attention of investors and market observers, as the approval of such ETFs is seen as a crucial step toward institutional involvement in the cryptocurrency market. The decision highlights the challenges and careful consideration involved in regulating cryptocurrencies. (Source: Blockworks)
The events of September 2023 had a clear impact on the financial markets. While the stock markets experienced losses, Bitcoin made a notable turnaround. For the first time in seven years, Bitcoin saw a positive month in September, which is particularly remarkable.
