Bitcoin Breaks Historical September Slumber with Positive Performance
In a surprising turn of events, Bitcoin has managed to break free from its historical September slump and achieve its first positive performance for the month since 2016. This milestone is even more impressive considering the significant resistance faced from the U.S. Securities and Exchange Commission (SEC) regarding Bitcoin spot exchange-traded fund (ETF) applications.
At the start of the month, Bitcoin was valued at around $25,800. However, it has surged almost 4% and reached nearly $27,000 at the time of writing. This rally has taken place despite the repeated postponement of multiple BTC spot ETF applications by the SEC. The regulatory body has delayed decisions on over seven applications in the past month, even with recent efforts to expedite the approval process.
According to Coinglass data, this price surge marks Bitcoin’s fourth positive September since 2013 and the first since 2016. Interestingly, two crypto analysts failed to predict its price movement correctly, as reported by BeInCrypto. However, it’s important to note that despite this strong September performance, Bitcoin has suffered its first quarterly loss of the year, shedding approximately 12% of its value over the past three months.
Investors are cautiously optimistic about a bullish October for Bitcoin. Historically, the cryptocurrency has performed well during this month. For example, even during a significant market downturn last October that led to the collapse of several crypto-related firms, Bitcoin still managed to record a 5.56% gain.
Crypto analyst Tedtalksmacro explained this strong October performance as “a period of positive seasonality.” He stated that October has been Bitcoin’s best-performing month on average over the past three years, and this positive seasonality typically extends into the first quarter of the following year. However, he also warned that the current high interest rates and inflationary pressures may impact Bitcoin’s performance compared to previous years.
Moreover, blockchain analytics firm Santiment highlighted that Bitcoin’s long-term prospects are promising. Whales, which are large Bitcoin holders, have been accumulating Bitcoin along with Tether’s USDT for the past six weeks. This accumulation indicates buying power and suggests that the rally could continue into October.
While expectations for a bullish October are high, it’s crucial to remember that the SEC’s decision regarding any of the spot-ETF applications could potentially impact Bitcoin’s price behavior. Therefore, investors should stay vigilant and closely monitor developments in the regulatory landscape.
In conclusion, Bitcoin’s positive performance in September, breaking its historical slump, is certainly a noteworthy achievement. However, the future performance of the cryptocurrency will depend on various factors, including regulatory decisions, interest rates, and inflation. As always, investors should exercise caution, conduct thorough research, and seek professional advice before making any investment decisions.
