Bitcoin's history shows that September is usually a bearish month. However, this year may prove to be an exception due to improving global liquidity and NASDAQ's embrace of Bitcoin.
Bitcoin's Performance in September
Bitcoin [BTC] will end August with a lower value than its opening price unless it rallies above its current weekly high within the next three days. This indicates that the responsibility of delivering positive monthly gains will carry over into September. Historically, September has been a bearish month for Bitcoin, with the cryptocurrency delivering a bearish performance in eight out of 11 Septembers since 2013. However, several key factors suggest that BTC may be extremely bullish in the upcoming month.
Global Liquidity and Bitcoin
Recent data shows that global liquidity is recovering and reaching new highs. Although Bitcoin hasn’t received a large share of this liquidity, the positive trend in liquidity is beneficial for the market. The increase in global liquidity, along with expected rate cuts in September, could give Bitcoin the boost it needs to yield positive returns during the month. A CryptosRus analysis suggested that a mix of rate cuts, growing liquidity, the halving, and the U.S. elections closely resembled Bitcoin in 2016 and 2020. BTC experienced a robust rally in both instances.
Bitcoin's Major Market Breakthroughs
Access to Bitcoin is higher than ever, especially with the launch of ETFs earlier this year. This increased access could soon extend to the stock market, thanks to a recent NASDAQ filing. NASDAQ plans to introduce Bitcoin options trading, which may further enhance positive sentiment among investors. Bitcoin investors may also be gearing up for a price rally in September. Large holder inflows have spiked in the last 24 hours, reaching the fourth-highest level observed in the past three months. Inflows peaked at 77,400 BTC during the same period, with only 11,240 in outflows recorded during the same period. Despite Bitcoin’s price dipping below $60,000 once again, investor optimism remains high, as evidenced by the intense accumulation at lower prices. Bitcoin has also maintained a significant dominance against Ethereum [ETH] and other altcoins, positioning it to benefit from most of the liquidity flowing into the crypto market. As a result, Bitcoin continues to command most mainstream attention, despite the presence of numerous altcoins. Bitcoin is poised for a potentially bullish September if interest rates decrease. Improved global liquidity and increased adoption in mainstream markets could favor BTC’s performance by the end of the year.
Bitcoin faces the opportunity to alter its historical bearish trend in September due to a combination of several favorable factors, such as improving global liquidity, decreasing interest rates, and growing mainstream adoption.
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