Bitcoin, the market's largest cryptocurrency, is defying history, recording its best September ever according to onchain data.
This September has become a memorable moment for Bitcoin, as the market-leading cryptocurrency has seen a 13% increase in its price, surpassing $66.000 for the first time in its history during this month.
For experts, this rally not only marks a significant milestone in Bitcoin's performance, but also defies historical expectations that have made September a generally negative month for the leading cryptocurrency.
A historic September for the price of Bitcoin
Recent data from CoinMarketCap platform indicates that the price of Bitcoin reached a monthly high of $66.200 per BTC on September 27. Although, at the time of writing this article, the price of the cryptocurrency has corrected to around $65.700, this represents a The best performance recorded by Bitcoin during the month of September, which is historically considered the “worst month” for cryptocurrency.
How has informed this medium, this remarkable increase in the bitcoin price This comes amid economic stimulus measures in China and a more lax monetary policy by the US Federal Reserve, which has decided to cut interest rates by 50 basis points after 4 years.
Source: CoinMarketCap
In addition to the economic outlook, institutional demand has also been a crucial factor in the rally in Bitcoin’s price over the past month. Key players in Bitcoin investing, such as BlackRock and Fidelity Investments, have increased their holdings of the cryptocurrency significantly, driven by growing investor interest in spot Bitcoin exchange-traded funds (ETFs).
In its latest weekly report, CoinShares highlighted that cryptocurrency-based investment products, especially Bitcoin, were recording significant inflows for the second consecutive week, evidencing the Renewed investor interest in cryptocurrencies following the Federal Open Market Committee (FOMC) decision to cut interest rates in the United States. This trend has led to significant inflows into Bitcoin ETFs, reaching $365 million in inflows over the past week.
Bitcoin breaks theories about September
As mentioned, September has historically been a tough month for the price of Bitcoin. Matt Hougan, Bitwise’s chief investment officer, posted in a recent report that the market-leading cryptocurrency has seen an average decline of 4,5% since it began trading in 2010.
The month of September has seen sharp declines in nine of the thirteen years on record, making it one of the worst months for the leading cryptocurrency. In its reportHougan discussed this phenomenon, known as the “September effect,” which has remained a constant in Bitcoin’s behavior.
According to his theory, September has been a rough month for all risk assets, not just Bitcoin. In fact, he noted that since 1929, this month has been the only one in which stocks tend to fall more frequently than they rise. Hougan noted that this could be attributed to a number of factors, including the volatility that comes after the summer months and the tendency for mutual funds to reap losses at the end of their fiscal year. He further mentioned that the SEC’s “enforcement season,” which typically intensifies in September, may have also contributed to the pressure on the prices of cryptocurrencies and other risk assets.
However, as the data shows, this September has seen a radical change in this narrative, with the price of Bitcoin breaking expectations and defying the historical pattern.
October, a promising month for Bitcoin
Unlike September, Bitcoin's price has historically performed positively during the month of October, so analysts suggest that the leading cryptocurrency could experience a significant recovery over the next month, especially considering the strong institutional demand and the macroeconomic environment that seems to be increasingly favorable for risk assets.
October has been a positive month for Bitcoin, which is why it is known as “Uptober”. During this month, the leading cryptocurrency has recorded an average increase of 30% in its value.
Because of this, analysts remain bullish on the price of Bitcoin, and current conditions appear to align with historical patterns of institutional accumulation preceding strong price movements, which may propel Bitcoin to continue to defy expectations and showcase its resilience and importance as a key player in the financial landscape.
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