Grayscale September Market Report: Bitcoin remains strong despite global market turmoil

PANews reported on October 5 that according to the September market report released by Grayscale, Bitcoin performed well amidst the global market fluctuations in September 2023. Bitcoin rose 4.1% in September, while most traditional assets suffered significant losses. The losses, especially amid rising U.S. bond yields, demonstrate Bitcoin’s qualities as a “store of value” and “crisis haven.” Reports further suggest that the next price catalyst for Bitcoin could come from the approval of a Bitcoin spot ETF. In particular, the SEC has until October 13 to seek a rehearing of Grayscale’s defeat in the court’s recent ruling. If the SEC abandons the appeal, it will reconsider Grayscale’s application to convert GBTC to a spot ETF, as well as other related bits. Coin spot ETF application.

Still, Grayscale warned that the broader financial market environment remains challenging. The Fed's tightening policy and government bond yields may still be looking for a new balance, and a "soft landing" for the U.S. economy is uncertain. While Bitcoin’s transaction volume fell in September, various on-chain metrics improved: funding addresses, active addresses, and the number of transactions all increased. Given the progress made by spot Bitcoin ETFs in late August, a pick-up in on-chain activity could represent new investors taking positions ahead of possible regulatory approval. Its valuations may start to recover once the macroeconomic backdrop improves. This also hints at its potential value as an investment asset.