Leading cryptocurrency Bitcoin and altcoins started the day with a decline. While Bitcoin fell below the $65,000 level for the first time in the last six days, the likely cause of this decline was Mt. Gox creditors selling Bitcoin, but a decline in market sentiment and seasonal trends.
First of all, CryptoQuant CEO Ki Young Ju stated in his post on his X account that the sudden decline that was worried after the Mt.
Ju said that a possible decline in Bitcoin price will be due to market sentiment, not Mt.Gox.
The Drop in Bitcoin is Seasonal!
Like Ju, many analysts attribute the decline in Bitcoin to market sentiment and seasonal factors. One of them was Timothy Peterson, founder of Cane Island Alternative Advisors.
Timothy Peterson attributed Bitcoin's poor performance and declines to these months of the year, which have historically seen poor performance.
According to Peterson, between July and September, BTC underperforms, but then comes October, which is known as the bullish month and is known as Uptober.
“Our research shows a steady trend of underperformance in Bitcoin from July 22 to September 22.
The positive results of Bitcoin's seasonal cycle appear a little later in the year. “After the weak July and September period, the “Uptober” period comes.”
Spot Ethereum ETFs Have Been Bad for Both Bitcoin and ETH!
Finally, Charles Edwards, founder of Capriole Investments, also evaluated the weakness in the market and attributed this situation mostly to spot Ethereum ETFs.
Claiming that the timing of the ETH ETF launch was wrong, Edwards said, “The entire market would be better off if ETH ETFs did not exist in 2024.”
Stating that Ethereum has performed poorly for a long time, Edwards said that with this weakness, ETFs increase the uncertainty in the market.
“The Spot Ethereum ETF launch has been bad for both BTC and ETH. ETH has performed poorly this entire cycle, and now with the launch of the ETF, uncertainty has increased at the market and institutional level.
“There is a good chance of turning the ship around, but it would be better for the entire market if the launch of the ETH ETF was not in 2024.”
*This is not investment advice.