September has historically been a challenging month for Bitcoin, with the market rarely delivering positive returns. Since 2017, Bitcoin has only posted a positive return once—last year, with a modest 3.99% gain. However, this September might just break that trend. In the past 30 days, Bitcoin has surged by 10.1%. Wondering why? Join us as we dive in deep.
What Do Interest Rate Cuts Mean for Bitcoin?
The month kicked off on a hopeful note after Federal Reserve Chair Jerome Powell hinted at a potential 50-basis point interest rate cut. Buyers quickly took action, with Bitcoin’s upward momentum starting as early as September 7.
On September 18, the US Federal Reserve confirmed the rate cut, and the market reacted accordingly. However, the days leading up to the announcement weren’t entirely smooth. Between September 14 and 16, Bitcoin’s price briefly dipped from $60,477 to $58,259. Despite this setback, buyers regained control just before the official announcement. By the day of the news, Bitcoin opened at $60,309, and since then, it has seen an impressive rise of over 8%.
The US wasn’t alone in cutting rates. Major central banks like the European Central Bank and the People’s Bank of China followed suit, further boosting Bitcoin’s rally. However, the US Federal Reserve’s move had the most significant impact on Bitcoin, thanks to its strong correlation with US monetary policy.
Historical Struggles in September
Despite last year’s modest gain, September has generally been tough for Bitcoin. Since 2017, the market has posted a positive return in only four Septembers, excluding this year. A positive close this month could not only break Bitcoin’s September losing streak but also reverse the overall trend for Q3.
While July saw an impressive return of 3.09%, August’s performance lagged with an 8.73% drop. If the current optimism persists, Q3 2024 may end on a high note.
Bitcoin’s Journey So Far in 2024
Bitcoin started the year at $44,164 and hit a new all-time high of $73,000 in mid-March. Currently, the price stands at $65,510, reflecting a year-to-date gain of 48.33%. However, it remains about 11% below its all-time high.
Looking Ahead: It’s Looking Bullish!
The crypto community remains confident in Bitcoin’s current momentum. Many believe that the next US administration will be forced to adopt crypto-friendly policies, given how prominently cryptocurrency has featured in the presidential election campaigns. If things go as expected, Bitcoin could soon close that 11% gap and surpass the $73,000 mark.
