Bitcoin Drops Nearly 2% in Historically Weak 38th Week

The 38th week of the year historically sees poor performance for Bitcoin, with an average return of -2.25%, as per Coinglass.
This week, Bitcoin is down nearly 2%, trading around $113,000. September's options expiry suggests a max pain level at $110,000, indicating potential further downside.
Max pain is where the largest number of options expire worthless, maximizing losses for option buyers.
Market enthusiasm has waned, with perpetual funding rates dropping to 4%, one of the lowest levels in a month, indicating reduced demand for leveraged long exposure.
Implied volatility (IV) is near historic lows at 37, suggesting low market expectations for future price swings.
Despite the weekly dip, Bitcoin is up 4% in September and 6% for the quarter, with most remaining weeks in the year historically yielding positive returns.
Gold has climbed another 1% on Tuesday, now over 42% higher year-to-date, impacting Bitcoin's appeal.
Gains in AI and high-performance computing stocks, such as IREN, have also diverted attention from Bitcoin.