Bitcoin has surprised investors this September by defying its historical trend of negative returns for the month. With a gain of at least 9%, Bitcoin is set to record a positive performance, marking only the third instance of growth since 2013. This unexpected turn of events has put Bitcoin in a strong position as it gears up for October, a month that traditionally favors the cryptocurrency.
October has historically been a favorable month for Bitcoin, with only two instances of negative returns since 2013. Current market conditions, including global monetary policies and U.S. political support, suggest a continued bullish trend for Bitcoin. Some traders are even setting their sights on a potential push towards $70,000 from the current price of around $64,000.
The positive performance of Bitcoin in September has laid a solid foundation for the cryptocurrency as it enters October. Historically, a green September has resulted in Bitcoin closing higher in the following months of October, November, and December. In contrast to the volatility often seen in September, October has proven to be a more stable month for Bitcoin, with gains as high as 60% and an average increase of 22% since 2013.
Seasonality plays a significant role in the cryptocurrency market, with assets experiencing regular and predictable changes throughout the year. While these fluctuations may seem random, there are underlying factors at play. For example, profit-taking around tax season in April and May can lead to drawdowns, while the “Santa Claus” rally in December indicates increased demand for cryptocurrencies.
Despite historically negative trends in September, Bitcoin managed to gain amidst a backdrop of global monetary easing policies, a weakening yen, and increased institutional investments in the cryptocurrency. Additionally, both political parties in the U.S. have shown a favorable sentiment towards the crypto market ahead of the November elections, influencing market movements in a positive direction.
Looking ahead, industry experts expect the current trend to continue, with crypto correlations remaining high to macro assets. Augustine Fan, head of insights at SOFA, believes that the favorable macro background will serve as a strong tailwind for crypto prices into the fourth quarter. With political figures like Kamala Harris voicing support for cryptocurrencies as part of their campaign rhetoric, investors are likely to adopt a “buy-the-dip” mode, leading to increased price action in the near term.
Overall, the positive performance of Bitcoin in September and the promising outlook for October indicate a potential bullish trend for the cryptocurrency. As the market continues to evolve and adapt to global economic conditions, Bitcoin remains a strong contender for investors looking to capitalize on its growth potential. Stay tuned for more updates on Bitcoin and the cryptocurrency market as we head into the final months of the year.
