Bitcoin (BTC) kicks off the traditionally challenging month of September facing new multi-week lows with expectations of further price declines.
After opening the week at a low of $107,270, Bitcoin showed some recovery but continued to experience heightened volatility typical during low-volume trading periods like holidays.
The US Labor Day break adds uncertainty as traders await clarity on the repercussions of recent disruptions in US tariff policies.
Notably, gold is experiencing a strong breakout, nearing its historic highs, which casts a bearish shadow over Bitcoin’s prospects according to notable gold advocates.
Meanwhile, institutional interest in Bitcoin is faltering, with US Bitcoin ETFs reporting significant outflows amounting to $750 million in August, signaling caution among large investors.
Here are 5 critical things to track in Bitcoin this week:
- Bitcoin hits fresh local lows around $107,270 before volatile swings take it slightly higher.
- Uncertainty looms as the US Labor Day holiday stalls market reactions to tariff-related court rulings.
- Gold’s impressive price rally raises concerns over Bitcoin’s near-term performance.
- Institutional ETF outflows indicate waning confidence despite prior bullish exposure increases.
- September historically poses challenges for Bitcoin bulls; this year might test that trend again.
Bitcoin Price Sentiment and Targets
Bitcoin’s recent dip to $107,270 is confirmed by Coinstelegram Markets Pro and TradingView data, reflecting a cautious trading mood with some speculators eyeing a retest of the $100,000 support level.
Market participants note stacking short liquidations between $112,000 and $115,000, creating potential for a squeeze higher if bullish momentum emerges.
US Tariff Challenges and Market Impact
The federal appeals court ruling questioning the US tariffs’ implementation authority has thrown markets into uncertainty, with President Trump signaling a push to maintain tariff policies.
This disruption coincides with the Federal Reserve preparing to release key labor data ahead of an anticipated interest rate decision, with markets expecting a rate cut in mid-September to support risk assets.
Gold’s Surge and Implications for Bitcoin
Gold prices near all-time highs at $3,489 per ounce, buoyed by favorable inflation data and strong seasonal trends.
This resurgence contrasts with Bitcoin’s price challenges, leading Bitcoin skeptic Peter Schiff to warn that gold’s breakout could push Bitcoin prices substantially lower.
Institutional Investor Trends
Bitcoin dipping below its prior all-time highs has chilled institutional buying, with UK-based Farside Investors reporting $126.7 million in ETF outflows Friday alone.
Capriole Investments notes that institutional demand is at a multimonth low, yet overall demand still accounts for roughly twice the daily mined supply.
September Seasonality and Bitcoin Outlook
September marks Bitcoin’s weakest month historically, often seeing negative returns and subdued bull market activity.
August closed with Bitcoin’s fourth consecutive monthly loss, reinforcing the established seasonal pattern, according to market analysts.
Some investors speculate that post-halving Bitcoin dynamics are evolving due to increasing institutional participation, potentially altering traditional seasonal effects.
For those tracking the crypto markets, staying alert to these developments is crucial as volatility and macroeconomic factors interplay.
This information is for educational purposes and does not constitute investment advice. Always perform your own research before making financial decisions.
