Bitcoin Price Prepares for Best September Closing in Decade, Q4 Rally Started?
The world’s largest cryptocurrency, Bitcoin, is gearing up for its best September closing in a decade as it continues to show major strength in the market. With a surge of more than 3.5% in the last 24 hours, Bitcoin is currently trading at $65,213.85 with a market cap of $1.288 trillion. The daily trading volumes have also seen a significant increase of 50%, indicating strong investor interest in the digital asset.
The recent rate cuts by the Federal Reserve and the Chinese central bank have injected liquidity into the market, with $140 billion being infused by the PBoC. This surplus of money seems to be flowing into Bitcoin, propelling the cryptocurrency towards a historic September closing. The last time Bitcoin saw such strong double-digit returns in September was back in 2012.
Bitcoin’s correlation with macro indicators has been a key factor in its price movements. Sean McNulty, director of trading at Arbelos Markets, noted that Bitcoin’s correlation with monetary policy, especially with the Fed, remains high. The easing of monetary policies by central banks around the world has also contributed to Bitcoin’s upward trajectory.
Market analysts are closely watching the $65,000 level, as Friday’s Bitcoin options expiry could impact the price movement. With $5.8 billion worth of Bitcoin options set to expire, the put call ratio of 0.64 suggests that bulls are dominating the expiry. Chris Newhouse, director of research at Cumberland Labs, emphasized the importance of breaking out and maintaining the $65,000 level for sustained price discovery.
Large holders, including whales and sharks, have been consistently accumulating Bitcoin over the past six months, totaling $4.08 billion worth of the digital asset. This accumulation has helped prevent any significant downturns in the market, supporting Bitcoin’s price surge.
Institutional interest in Bitcoin is also on the rise, as US spot Bitcoin ETFs recorded a massive $365 million worth of inflows on Thursday, the highest single-day flows in September. The Ark Invest Bitcoin ETF (ARKB) and BlackRock’s IBIT led the inflows, with trading volumes reaching $1.52 billion for IBIT.
With investors turning bullish and expecting Bitcoin to surge to $100,000 and beyond in the fourth quarter, the market is anticipating a major rally ahead. BitMEX CEO Arthur Hayes even suggested that a volatility supercycle could lead to significant price gains for Bitcoin in the near future.
Overall, Bitcoin’s performance in September has exceeded expectations, setting the stage for a potentially bullish end to the year. As the cryptocurrency market continues to evolve, all eyes are on Bitcoin as it prepares for a potentially historic Q4 rally.