Bitcoin Stumbles in Week 38, Its Third Worst Week on Average

Core Insights - The 38th week of the year is historically the third-worst performing week for bitcoin, averaging a return of -2.25% [1] - Bitcoin is currently trading around $113,000, down nearly 2%, with September's monthly options expiry indicating a max pain level at $110,000, suggesting potential further downside [1][2] - Market enthusiasm for bitcoin has diminished, with perpetual funding rates dropping to 4%, one of the lowest levels in a month, indicating reduced demand for leveraged long exposure [2][3] Market Performance - Despite the weekly dip, bitcoin is 4% higher in September and up 6% for the quarter, with historical trends suggesting potential positive returns in the remaining weeks of the year [4] - Implied volatility for bitcoin is near historic lows at 37, reflecting subdued market expectations for future price swings [3][4] Competitive Landscape - The impressive rally in gold, which has increased more than 42% year to date, is impacting bitcoin sentiment negatively [4] - Gains in artificial intelligence and high-performance computing stocks, such as IREN, are also detracting from bitcoin's appeal in the short term [5]