With the Fed expected to make two more interest rate cuts later this year, there is a high chance that Bitcoin will extend its bullish rally into the next quarter.
Bitcoin on the rise in September (MidJourney / Livecoins)
September is considered the worst month for Bitcoin, with a 8x drop in the last 11 years. However, this pattern is about to change as Bitcoin prepares to close its best September ever.
With exactly one week left in the month, Bitcoin is trading at $63,400, up 7.5% from the start of September.
For comparison, the best September so far was recorded in 2016, when Bitcoin closed the month with 6% gains. On average, returns are â3.75% in this period.
Bitcoin Reacts After Fed Cuts Rates
It's not just Bitcoin that suffers in the months of September. Historical data shows that even the S&P500, an index that brings together the 500 largest American companies, falls during this period.
This is due to several factors, experts explain, including traders returning from their vacations in the northern hemisphere and reorganizing their portfolios, as well as the psychological anticipation of this data.
Bitcoin fell by 19.3% between the end of August and the beginning of September, leading many to believe that this would be another month that would contribute to this statistic.
However, the largest cryptocurrency on the market took off in the following days. The big turning point came last Wednesday (18) after the Fed cut the interest rate by 0.5%, a move considered aggressive, which lets the American economy breathe again.
With that, Bitcoin surpassed the US$ 64,500 range this Monday (23), reaching its highest price in the last 28 days as it heads towards closing its best September in history.
Bitcoin defies statistics and is about to close its best September in history. Source: TradingView.
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Data shows that this is the best September for Bitcoin in its entire history. Source: Coinglass.
Will Bitcoin's bull run continue in the last quarter of 2024?
Another detail that draws attention in the image above is Bitcoin's excellent performance in the months of October and November, with average returns of 22.9% and 46.8%, respectively.
With the Fed expected to make two more interest rate cuts later this year, there is a high chance that Bitcoin will extend its bullish rally into the next quarter.
Furthermore, the market has been under heavy selling pressure in recent months, both from the German government and private companies like Mt. Gox and Genesis. Now that the pressure has passed, Bitcoin has a clear path to rise.
Added to this, another point is that former FTX customers may be paid later this year (in dollars), which could create buying pressure of R$70 billion.
