The start of interest rate cuts by central banks around the world and the US’s transition to a looser monetary policy in particular are increasing the likelihood that Bitcoin will make a historic gain in September. According to Bloomberg data, Bitcoin has gained more than 10 percent this month. This gain reversed the average 5.9 percent downtrend experienced by the largest cryptocurrency in Septembers over the past decade. The index, which includes smaller cryptocurrencies, increased by more than 20 percent, indicating that more expansionary financial conditions are directly boosting risk assets such as the cryptocurrency market.

Interest Rate Cuts Boost Cryptocurrency Market

The loosening of monetary policies by central banks around the world has a positive impact on the cryptocurrency market. In particular, the interest rate cut by the US Federal Reserve (Fed) and the expectation that this trend will continue have caused investors to turn to riskier assets. This trend has led to a noticeable rise in Bitcoin as well as smaller cryptocurrencies.

According to Bloomberg, the increase in Bitcoin’s value in September this year could be one of the biggest monthly increases since September 2016.

On the other hand, a report published by cryptocurrency exchange Kraken indicates that if Bitcoin fails to "definitely" exceed the $65,000 level, the market may enter a period of stagnation. For this reason, Bitcoin will be closely monitored in the coming weeks to see if it surpasses this critical level and finds permanence above it.

Market Awaits US Election Results

In addition to changes in interest rate policies, the cryptocurrency market is also closely following the results of the US presidential election. Many executives in the sector expect cryptocurrency regulations in the US to become clearer after the election results. It is predicted that these regulations will have a positive impact on the market and increase interest in cryptocurrencies.

Regulatory uncertainties, especially in the US, have negatively affected the cryptocurrency market in recent years. However, the decrease in uncertainty after the election and the introduction of clearer regulations could increase investor confidence. This could lead to significant increases in the prices of both Bitcoin and other cryptocurrencies.