Bitcoin will end August with a negative note despite a major victory for the crypto industry on the regulatory front. Market participants believe that the cryptocurrency may be stuck in a range throughout September. According to Coin Metrics, the cryptocurrency is expected to decline by 10% this month. Bitcoin jumped 7% recently after a federal appellate court sided Grayscale against the U.S. Securities and Exchange Commission on a crucial crypto exchange-traded fund case. This wasn’t sufficient to bring the flagship cryptocurrency back up to $29,000. Investors struggle with low trading volumes and lack of liquidity. Bitcoin prices could stay rangebound for the rest of September, despite crypto investors’ excitement. Rob Ginsberg of Wolfe Research said that if bitcoin is able to get some momentum, it will likely retest resistance between 29.5-30k within the next few weeks. We expect bitcoin to break through this level and start a new leg up, but if it fails to do so we may be back at the $25,000 level. He said that “these drawdowns have been saved YTD by rapid legs higher, which are largely driven primarily by catalysts.” Grayscale’s recent bitcoin spot ETF ruling was the latest [Tuesday]. This will encourage large institutions to become more involved in the market, further strengthening our bullish long-term view. Will Tamplin, from Fairlead Strategies, said that the initial rise is linked to the firm’s short term indicators. He also said that the indicator supports “follow-through within the context bitcoin’s trading band.” Bitcoin could experience a similar consolidation to the downtrends of May and June. Tamplin believes the next important level to be tested is $28,800. The next level to be watched is $31,900. Since the banking crisis in March, Bitcoin has fluctuated between $25,000 and $30,000. There have been brief movements above $30,000 but they failed to last. The market is still being held back by the lack of regulatory certainty, despite the fact that individual regulatory changes have been a positive step. Elliot Han, Cantor Fitzgerald, said that September is historically a volatile and down month for equity markets. Crypto has also followed this pattern. Han pointed out that bitcoin’s largest loss occurred in September, just before the 2020 halving. Bitcoin’s halving reduces the reward for mining cryptocurrency. It’s expected to happen again in spring of 2024. He added that “any positive news about U.S. regulations will be welcome, but apart from the ETF applications there is nothing expected.” This doesn’t mean that we can’t be surprised by the positive or negative aspects of a situation. Washington is on the verge of a new September, which will begin with an update from SEC regarding at least one spot Bitcoin ETF application. As early as September, the SEC will respond to Bitwise, BlackRock Fidelity VanEck, and other filings. The agency postponed its decision on the bitcoin ETF applications of WisdomTree, Invesco and others until Thursday afternoon. The regulatory landscape is important for the next phase, because institutions are interested in this and want more regulation. Kristin Smith CEO of the Blockchain Association, a policy-focused organization said. They’re afraid that if they rush in without a proper framework, it will come back to bite them. She added that “this kind of legislative progression has really captured the attention of traditional financial institutions. Maybe they had looked at it before, but now they want to be there when legislation is passed.” Michael Bloom, CNBC’s reporter, contributed to this report.