Miles Deutscher, a popular cryptocurrency analyst, shared his market outlook and thoughts for September 2023 in a recent statement.
He said Bitcoin fell by 11.2% and many altcoins performed even worse. He also warned that September has historically been the worst-performing month in Bitcoin's history, with an average return of -7%.
Deutscher said the most important catalyst to watch for the crypto market is the spot Bitcoin ETF approvals by the SEC, which are still pending and will likely be delayed until late 2023 or early Q4.
He said that any concrete development in this regard would undoubtedly affect market dynamics and prices, but in the absence of such news, the market would remain apathetic and jaded.
Additionally, the US government's Silk Road Bitcoin sale, Mt. Gox pointed out that there was a significant oversupply for Bitcoin, especially before the 4th quarter, due to various factors such as Bitcoin distribution, FTX token sale, and many altcoins reaching the middle supply curve. This oversupply could have a significant impact on prices in this low-liquidity environment unless there is renewed interest from market participants, Deutscher noted.
The analyst said he thinks buyers will step in at some level, as ETF applications have been delayed but not rejected, and are statistically more likely than ever after the Grayscale victory.
He stated that the real question is whether there is significant interest at $25,000, $23,000 or lower levels, depending on how long the approval period extends and how the macro environment changes.
He also highlighted two important dates that could impact the crypto market in September: the US CPI release on September 13 and the FOMC meeting on September 20. He shared with his followers that these events will reveal whether the latest inflation increase is permanent or an exceptional situation and how the FED will react to it.
*This is not investment advice.