Bitcoin breaks September curse, global rate cuts boost best performance in years
Bitcoin is expected to see one of the largest increases in recent years in September, rising more than 10% this month, driven by the Federal Reserve and global interest rate cuts. The small cryptocurrency index has risen by more than 20%, showing the impact of loose financial conditions. Bitcoin is currently trading at $65,334, up 56% since 2024. The market is paying attention to the upcoming U.S. presidential election and changes in cryptocurrency regulation
According to Zhitong Finance, Bitcoin is expected to see one of its largest September gains in recent years, as the global interest rate cut led by the Federal Reserve has helped the largest digital asset withstand seasonal downturns. Data shows that the token has risen by more than 10% this month, while the average decline in September over the past decade has been 5.9%. The index of small cryptocurrencies has risen by more than 20%, indicating that the loose financial environment has activated the riskier parts of the crypto market.
In September, the Federal Reserve, the European Central Bank, and the People's Bank of China all lowered borrowing costs to support economic growth. Investors responded to the loose monetary environment by pushing up all assets, from stocks to gold, as they expect further stimulus measures in the future. Sean McNulty, trading director at liquidity provider Arbelos Markets, said, "As far as the Federal Reserve is concerned, Bitcoin still has the highest correlation with monetary policy. The loose policies of other central banks are also helpful."
On Friday, Bitcoin rose by 1.2%, with a trading price of $65,334 as of the time of writing. Boosted by funds flowing into the U.S. Bitcoin spot ETF, Bitcoin has risen by 56% in 2024, but remains below the record high of $73,798 set in March.
Caroline Mauron, co-founder of digital asset derivatives trading liquidity provider Orbit Markets, stated that due to a large number of options contracts expiring on Friday, the $65,000 level may "stick" within a few hours. According to a report from the cryptocurrency exchange Kraken, failure to decisively break through $65,000 may indicate a weak period for the token.
In addition to monetary policy, the digital asset industry is also awaiting the results of the U.S. presidential election. Many executives expect that clearer cryptocurrency regulations in the United States after the election will boost market sentiment