This month, Bitcoin has risen by more than 10%. Analysis suggests that the failure to "decisively" break through $65,000 may indicate that Bitcoin is entering a soft period
Loose financial conditions have ignited market risk appetite, with Bitcoin poised to achieve one of its largest gains in September.
According to data compiled by Bloomberg, Bitcoin has risen by over 10% this month, while over the past decade, September has seen an average decline of 5.9%. The small coin index has surged by over 20%.
This month, central banks such as the Federal Reserve, the European Central Bank, and the People's Bank of China have all lowered borrowing costs to support economic growth. Investors have quickly responded to the looser monetary environment, with this risk appetite reflected in trading of stocks, gold, and other assets besides digital currencies.
Sean McNulty, trading director at Arbelos Markets, stated: "For the Federal Reserve, Bitcoin still has the highest correlation with monetary policy. The accommodative policies of other central banks are certainly helpful as well."
As of the time of writing, the price of Bitcoin stands at $65,149, marking a 47% increase in price since the beginning of the year.
Caroline Mauron, co-founder of Orbit Markets, mentioned that due to a large number of options contracts expiring on Friday, the $65,000 level may prove to be "resilient" within a few hours.
According to a statement from the cryptocurrency exchange Kraken, failing to "decisively" break through $65,000 could signal a softening period for Bitcoin.
Furthermore, the U.S. presidential election may also boost digital assets. Market expectations suggest that in the months following the election, cryptocurrency regulation in the U.S. will become clearer, which will uplift market sentiment