Cryptocurrency Bitcoin is poised to achieve one of its strongest Septembers yet, thanks to a series of interest rate cuts by central banks that are channeling funds into this asset class. This shift is helping Bitcoin break the downward trend it has experienced in September over the last ten years.
In September, the US Federal Reserve, the European Central Bank, and the People’s Bank of China all reduced borrowing costs to stimulate economic growth, resulting in a rise across various asset classes.
Sean McNulty from Arbelos Markets noted in a Bloomberg News report that Bitcoin's relationship with monetary policy is particularly strong with the Federal Reserve.
So far this month, Bitcoin has increased by 10%, a notable contrast to the average decline of 5.9% it has faced in September over the past decade, according to Bloomberg data. Historically, September has been a challenging month for Bitcoin, often resulting in negative returns.
As reported by Coindesk, this positive momentum has set Bitcoin up for a robust start in October. The period from October to December has typically been bullish, with some analysts predicting a rise to $70,000 in the coming weeks. A strong close in September has historically led to a more favorable October to December period over the last ten years.
