Bitcoin Shakes Off September Weakness: Will BTC Explode In October And Align With Historical Performances?

September is historically bearish for Bitcoin and crypto assets.

However, looking at events in the past few weeks, it is evident that September 2024 could be different.

At spot rates, the world’s most valuable coin is trading above the September open, which stood at around $59,000.

The shift in momentum and trend is a relief for Bitcoin holders who expected the worst this month.

After all, Bitcoin started on the weaker foot this month. By 6 September 2024, the coin was as low as $52,400, with analysts bearish, expecting a trend continuation set in motion in August.

Prices have since rebounded, and Bitcoin is up 20% from its September low, inching closer to $66,000–a local resistance level.

Bitcoin To Grow Stronger in October?

Taking to X, one analyst now thinks Bitcoin is expected to grow even stronger in October.

Comparing how BTC has been performing in all Octobers over the past few years, the analyst predicts the coin to grow by at least 27% in October 2024.

If that’s the case, not only will Bitcoin break $74,000 but register new all-time highs, rising to at least $80,000.

There are possible multiple drivers that would lift the world’s most valuable coin to fresh highs.

Rate Cut And Safe-Haven Appeal

Last week, the United States Federal Reserve slashed interest rates by 50 basis points. As the central banks expect inflation to drop to the 2% benchmark rate, their focus now is on ensuring the economy has a soft landing.

However, with an accommodative monetary policy and low rates, there is a chance that inflation will rise as money circulates.

Accordingly, to cushion themselves from a possible reduction in purchasing power, investors are pouring funds into safe-haven assets. Top of the list is gold–that’s also at all-time highs, and Bitcoin–the digital gold that’s easier to move and trustless.

Beyond this, the US SEC is also warming up to cryptocurrencies, thanks in part to policymakers realizing the good of crypto.

Donald Trump and Kamala Harris have promised to support the industry should they win.

BNY Receives Exemptions as Options of Spot Bitcoin ETFs Approved

After the approval of spot Bitcoin ETFs, the United States SEC gave BNY bank exemptions under SAB 121 rules. This approval could set the foundation for banks to become Bitcoin custodians in the coming months.

While at it, the regulator also approved the trading of options of Blackrock’s spot Bitcoin ETF. With investors now permitted to trade spot Bitcoin ETF options, the likelihood of volatility rising, impacting prices will be higher.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.