Bitcoin and crypto stocks sink after last week’s rally, but still head for a positive September
Bitcoin.
Nurphoto | Getty Images
Bitcoin and crypto stocks retreated on the final trading day of September, following a rally last week, but are still poised to post a positive month.
The flagship cryptocurrency was last lower by 3% at $63,752.20, after briefly reclaiming the $65,000 level last week, according to Coin Metrics. Crypto stocks Coinbase slid 5% and MicroStrategy fell 2%.
Investors are bracing for strikes at ports up and down the East Coast and along the Gulf Coast after midnight Monday, which could shake the economy ahead of the holiday season.
Bitcoin is set to post its best September ever
Analysts have also warned about overbought conditions as bitcoin last week climbed nearly 5% in the five days ending Sept. 27 – as net inflows into global crypto exchange traded products accelerated to their highest level since mid-July. In the same period, Coinbase and MicroStrategy gained 12% and 21%, respectively. On Friday both stocks jumped 6%.
The combined net buying volume of U.S. bitcoin ETFs last week (16,774 BTC) exceeded a typical one-month supply of newly mined bitcoin (13,500), according to Bitwise-owned ETC Group. This was largely due to the policy reversal by the People’s Bank of China, the firm said.
For the month, bitcoin is on pace to finish its strongest September ever with an 8% gain and its second positive September – historically the cryptocurrency’s weakest month – in a row.
Coinbase is poised for a 4% monthly gain but is down nearly 14% for the quarter. Some analysts see that downtrend continuing in the coming weeks. Meanwhile, MicroStrategy is up 33% for the month and almost 28% for the quarter.
The market is heading into a seasonally strong quarter for crypto and risk assets broadly.
Bitcoin’s narrative is often debated — whether it’s a store of value or a risk asset — but its correlation is currently closer to that of the S&P 500 than to gold, and investors expect it to benefit from rate cuts, clarity following the U.S. presidential election and seasonal and favorable market conditions translating into greater flows into crypto ETFs.
In this photo illustration, a person is holding a smartphone with the logo of US GPU hardware company Lambda Inc. (Lambda Labs) on screen in front of website.
Timon Schneider | SOPA Images | AP
Cloud computing startup Lambda announced on Monday a multibillion-dollar deal with Microsoft for artificial intelligence infrastructure powered by tens of thousands of Nvidia chips.
The agreement comes as Lambda benefits from surging consumer demand for AI-powered services, including AI chatbots and assistants, CEO Stephen Balaban told CNBC’s “Money Movers” on Monday.
“We’re in the middle of probably the largest technology buildout that we’ve ever seen,” Balaban said. “The industry is going really well right now, and there’s just a lot of people who are using ChatGPT and Claude and the different AI services that are out there.”
Balaban said the partnership will continue the two companies’ long-term relationship, which goes back to 2018.
A specific dollar amount was not disclosed in the deal announcement.
Founded in 2012, Lambda provides cloud services and software for training and deploying AI models, servicing over 200 thousand developers, and also rents out servers powered by Nvidia’s graphics processing units.
The new infrastructure with Microsoft will include the NVIDIA GB300 NVL72 systems, which are also deployed by hyperscaler CoreWeave, according to a release.
“We love Nvidia’s product,” Balaban said. “They have the best accelerator product on the market.”
The company has dozens of data centers and is planning to continue not only leasing data centers but also constructing its own infrastructure as well, Balaban said.
Earlier in October, Lambda announced plans to open an AI factory in Kansas City in 2026. The site is expected to launch with 24 megawatts of capacity with the potential to scale up to over 100 MW.
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