Bloomberg: Rate Cut Drives Bitcoin to Strongest September in a Decade, Clear Break Above 65K Needed for Action

Bloomberg reports that in September this year, Bitcoin has defied the trend of previous years and achieved one of its best performances in recent months. A series of global interest rate cuts, particularly those by the Federal Reserve in the United States, have allowed the largest cryptocurrency to break the curse of the quarter and pave the way for a strong upward trend.

Bitcoin Sees 10% Increase in September, Reversing Historical Trend

Unlike previous years, Bitcoin has seen an increase of over 10% this month. According to Bloomberg data, September has historically been a bearish month for Bitcoin, with an average decrease of 5.9% over the past decade. Not only Bitcoin, but other smaller altcoins have also seen increases of over 20%, indicating a more relaxed financial environment encouraging investors to take on higher risks in the cryptocurrency market.

US Federal Reserve Policy Boosts Market Sentiment

The main driving force behind Bitcoin's strong surge in September is the global monetary policies. In order to stimulate economic growth, the US Federal Reserve, the European Central Bank (ECB), and the People's Bank of China have all implemented interest rate cuts in September. These loose monetary policies have led investors to shift towards various assets including stocks and gold, anticipating further stimulus measures in the future.

China's economic stimulus policies have caught the attention of Wall Street, with US investors saying: "Chinese stocks are much cheaper than US stocks! Bullish on China."

The trading chief at Arbelos Markets believes that Bitcoin's correlation with monetary policies, especially with the Federal Reserve, has been the highest, and the loose policies of other central banks have also contributed to Bitcoin's upward trend.

Potential Bitcoin Price Trends

Bitcoin price broke through $65,000 on September 27th, already achieving a 56% increase in 2024, mainly benefiting from the inflow of funds into the US Bitcoin ETF. However, Bitcoin is still below its historical high of $73,798 set in March this year. Nevertheless, the $65,000 price level could be a key point. Caroline Mauron, co-founder of Orbit Markets which provides liquidity for digital asset derivative trading, stated that due to a large number of options contracts expiring, this price level could become "sticky," with volatility potentially lasting for several hours. Failure to decisively break above $65,000 could signal the emergence of a downward trend, a view also shared in a recent report by cryptocurrency exchange Kraken.

In addition to the impact of monetary policy, the digital asset market is closely monitoring US political developments. The ongoing US presidential election is crucial for the crypto industry, with many insiders expecting clearer regulatory policies towards digital assets after the election, which could have far-reaching implications.