Crypto Market Update: Bitcoin and Ether Performance
This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
Latest Prices
| Asset | Price | Change |
|---|---|---|
| CoinDesk 20 Index | 1,843.91 | +0.88% |
| Bitcoin (BTC) | $58,458 | +0.67% |
| Ether (ETH) | $2,519 | +1.89% |
| S&P 500 | 5,658 | +1% |
| Gold | $2,400 | −0.15% |
| Nikkei 225 | 38,700.87 | +0.14% |
Market Overview
Bitcoin has been fluctuating around the critical $58,000 mark as the cryptocurrency market remains relatively calm, particularly on Labor Day in the United States. The largest cryptocurrency was trading at about $58,600 at the time of writing, representing a slight increase of approximately 1% over the past 24 hours. The broader digital asset market, according to CoinDesk Indices data, has seen a modest rise of 0.9%. Notably, other major cryptocurrencies like Ether (ETH) and Solana (SOL) have also shown positive movement, gaining around 1.9% and 0.5%, respectively.
In the context of exchange-traded funds (ETFs) that track Bitcoin, the situation is less optimistic. U.S.-listed Bitcoin ETFs have experienced total net outflows of $175 million on Friday, marking a continuation of a losing streak that has now lasted four days. Interestingly, Ether ETFs reported zero net inflows or outflows despite a considerable trading volume of $173 million, as indicated by data tracked by SoSoValue. This indicates a cautious sentiment among investors in the ETF market, despite the underlying strength of the cryptocurrencies themselves.
September’s Historical Trends
Many traders are aware that September has historically been one of Bitcoin’s most bearish months. According to data, Bitcoin tends to experience an average value depletion rate of 6.56% during this month. However, some analysts believe that a potential interest-rate cut by the Federal Reserve could change this narrative. Innokenty Isers, the founder of the crypto exchange Paybis, stated, “Should the Fed cut the interest rate in September, it might help Bitcoin rewrite its negative history, as rate cuts generally lead to an influx of US dollars into the economy, further strengthening Bitcoin’s appeal as a store of value.” This sentiment highlights the interplay between traditional financial policies and the performance of cryptocurrencies.
Political Factors Influencing Crypto Markets
In the political arena, election forecasts are showing a shift in favor of Republican candidate Donald Trump. According to data from Polymarket, Trump’s odds have increased significantly, while Democrat Kamala Harris’ odds have dropped to 47% from even odds just days prior. This change can be attributed to Harris’ declining appeal among traders, coinciding with her controversial proposal to tax unrealized gains for individuals worth over $100 million. Meanwhile, Trump’s odds have risen as he promotes a forthcoming decentralized finance project that could potentially offer “high yields” for crypto users, attracting attention from investors.
Conclusion
The current state of the crypto market reflects both the complexities of traditional financial influences and political dynamics. As Bitcoin hovers around the $58,000 mark and other cryptocurrencies show modest gains, traders remain cautiously optimistic, particularly with the potential for interest rate changes in the coming weeks. The performance of crypto ETFs and the shifting political landscape will continue to be critical factors in shaping the market’s trajectory.
