Grayscale September Market Report: Bitcoin still performs strongly amid global market turmoil

According to Grayscale's September market report released on October 5, Bitcoin performed well in the global market volatility in September 2023. Bitcoin rose 4.1% in September, while most traditional assets suffered significant losses, especially in the context of rising U.S. bond yields, showing Bitcoin's characteristics as a "store of value" and "crisis haven". The report further indicates that Bitcoin's next price catalyst may come from the approval of a Bitcoin spot ETF. In particular, the SEC must seek a retrial of Grayscale's recent court ruling by October 13. If the SEC abandons the appeal, it will reconsider Grayscale's application to convert GBTC into a spot ETF, as well as other related Bitcoin spot ETF applications.

Nevertheless, Grayscale warned that the broader financial market environment remains challenging. Fed tightening and government bond yields may still be looking for a new balance, and a "soft landing" for the U.S. economy is uncertain. Although Bitcoin's trading volume fell in September, various on-chain indicators improved: funding addresses, active addresses, and the number of transactions increased. Given the progress made by the spot Bitcoin ETF at the end of August, the pick-up in on-chain activity may represent new investors' positions before regulators may approve it. Once the macroeconomic backdrop improves, its valuation may begin to recover. This also hints at its potential value as an investment asset.