Bitcoin entered September facing significant headwinds after posting its best August performance since 2017, with a 25% monthly gain. The cryptocurrency fell below $77,000 as macroeconomic pressures mounted across financial markets.
Historically, September has been Bitcoin's weakest month, delivering an average loss near 3% since 2013, with only five positive returns across thirteen years. However, Bitcoin ended September in positive territory each of the last three years.
Macro Pressures Mount
Fed Chair Kevin Warsh's Jackson Hole speech highlighted elevated inflation concerns, triggering a strong market reaction. Sovereign yields climbed to new cycle highs, with the US 10-year Treasury reaching 4.784%. Markets are currently pricing a 66% chance of a 25-basis-point interest rate hike at the September 16 Federal Open Market Committee meeting, with potential for additional hikes before year-end.
Rising oil prices added to market pressure. Continued US strikes against Iran pushed West Texas Intermediate crude to $88 per barrel, up 2% on the day and the highest level since late July. Higher interest rates and a stronger dollar typically pressure risk assets, including Bitcoin and gold.
Market Performance
Major cryptocurrencies declined 2-4% following the broader market selloff. Bitcoin fell 2% to $76,600, Ethereum dropped 3% to $2,376, and Solana lost 4% to $98. Altcoins saw mixed results, with Filecoin up 10%, Pyth up 7%, and Uniswap up 6%.
Bitcoin ETFs recorded $237 million in net outflows on Tuesday, while Ethereum ETFs saw $8.6 million in inflows and extended their positive streak.
Banking Sector Developments
Twenty-one banks and asset managers including Citi, Goldman Sachs, Bank of America, and UBS announced plans to form a stablecoin company in the second half of 2026, with a dollar-denominated token expected to launch in the first half of 2027.
The SEC proposed modernizing transfer agent rules to allow blockchains to serve as official ownership records. The agency also scheduled a September 17 roundtable on 24-hour trading with major market participants including NYSE, Nasdaq, DTCC, Citadel Securities, and Robinhood.
Platform Growth
Robinhood Chain set new records with $3.38 million in fee revenue and $1.3 billion in decentralized exchange volume. Pumpfun's launchpad recorded $162 million in volume, a new all-time high.
