The Crypto Roundup: 04 September 2024 | CryptoCompare.com

Bitcoin, the world’s largest cryptocurrency, has endured a sharp decline so far in September, dropping from over $61,000 to now trade at $56,600 as investors grapple with growing economic uncertainty.

Concerns over a potential economic slowdown in both the United States and China have rattled investor sentiment, leading to a wider sell-off that saw equities lose $1 trillion in market capitalization in a single session. The impending release of the U.S. jobs report on Friday has traders on edge, as they seek clues about the trajectory of the economy.

The options market is reflecting these anxieties as demand for hedges against Bitcoin keeps growing. Sean McNulty, director of trading at liquidity provider Arbelos Markets, noted a surge in demand for these hedges, particularly in the aftermath of the upcoming jobs data and the November presidential election.

One notable trend is the growing interest in options contracts expiring on November 29 at a strike price of $35,000, which suggests that some investors are hedging against the possibility of pro-crypto presidential candidate Donald Trump losing the race for the White House.

Other caution indicators include a slide in the aggregate open interest for CME Group’s Bitcoin futures contracts to the lowest level since May, while spot Bitcoin exchange-traded funds (ETFs) have experienced their longest streak of net outflows in months.

Historically, September has been a challenging month for Bitcoin, with an average decline of more than 8% over the past five years.

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• Source: https://www.cryptocompare.com/email-updates/daily/2024/sep/04/