Key Takeaways

• Shares of Coinbase Global and MicroStrategy declined along with the price of bitcoin and other cryptocurrencies.

• Industry observers believe the drop in crypto prices was simply a pullback after digital coins posted a strong September, historically the worst month for them.

• Crypto demand surged recently on excitement about more Federal Reserve interest-rate cuts.

Shares of crypto-related companies Coinbase Global (COIN) and MicroStrategy (MSTR) fell Monday following a bitcoin price pullback after a surge this month.

The stocks retreated along with the prices of bitcoin, ether, and most other major cryptocurrencies on the last day of what has been historically the worst month for them. CoinDesk noted that even with Monday's declines, bitcoin should end the month with a 7% gain. It reported that since 2013, bitcoin has had an average loss of 3.6% in September and a 23% jump in October.

Inflows of $1.2B Last Week Reportedly Due To Hopes of More Fed Rate Cuts

The news site also pointed to data from European alternative investment company CoinShares showing digital asset funds had $1.2 billion in inflows last week, the most since the week ending July 19. CoinShares said that the inflows were driven by expectations of further Federal Reserve interest-rate cuts after the central bank slashed them by 50 basis points (bps) two weeks ago.

Markus Thielen, founder of digital asset management research firm 10K Research, told CoinDesk that bitcoin appears to be overbought in the short term, and that current signals have turned bearish.

Shares of Coinbase Global fell 5.5% in late-morning trading Monday but are up 4% this year. MicroStrategy shares slipped about 2% but have nearly tripled in 2024.

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