After a brief period of price decline, major indicators indicate that Bitcoin and other cryptocurrencies are likely to rise this month. This article explores what this means for investors.

Investors will return from vacation and be ready to take profits by the end of the year. Cryptocurrencies have had disappointing results over the past year, but there are signs that a strong bull market is on the way. Keep reading as we explain the metric and what it means for investors.

curse of september

September was not a good month for Bitcoin. Statistics show that on average, currency prices fall by 3% to 7%. The biggest decline was in 2014, when it fell by a whopping 19.1%. From 2013 to 2023, September is one of the few months with an average decline of just over 5%.

However, not every September has bad results. Last year, Bitcoin gained 3.91%. However, prior to that, there had been six months of negative results, and the last time the yield was positive was in September 2016.

Despite this negative outlook, past data is not necessarily a sign of the future. Looking at the trend of negative revenue months in August, 43% of those months were positive in September. A rebound is possible and has happened before.

Of course, all of this has to be in context. In contrast, October was one of the highest returning months with an average return of +22.90%. This means that next month could be an ideal time to buy and take immediate profits.

Could central bank interest rate cuts spark a bull market?

Another major factor contributing to the potential for a bull market is interest rate cuts by a number of major central banks. This includes the European Central Bank, the Bank of England, and the US Federal Reserve. This is despite the fact that inflation remains high.

When interest rates rise high, investors look to play it safe and reduce their risk levels. When interest rates are low and rates continue to decline, investors are more likely to make riskier and more volatile investments. This includes: Bitcoin and other cryptocurrencies.

Cryptocurrency exchange owner Arthur Hayes explained that this will also help expand the money supply. This could lead to more inflation, but Bitcoin is a deflationary asset with fixed supply. While this may be detrimental to some companies, the supply of Bitcoin is limited and its value will only increase.

Bitcoin sales decline

One sign of the beginning of a price rise and crash is that Bitcoin sales, especially those of some major companies, are declining. The US government continues to hold 203,000 BTC. This helped maintain market stability. Other long-term holders held about 262,000 BTC in investments in August. All of these investors own 75% of the total supply, providing even more stability. No other major wallets have shown any signs of activity, and this is going on further.

Some major companies sold significant amounts of Bitcoin in July and August. Genesis Trading, Mt.Gox, and the German government all sold assets amounting to a total of 170,000 BTC.

Results of ETF inflows

Bitcoin ETFs are a fairly new phenomenon. It is an exchange traded fund (ETF) and will be available from January 2024. Since then, the funds have generally been trading in positive territory, but some funds suffered their first losses at the end of August. For example, BlackRock’s Ibit lost £13.5m on August 29th.

With a new wave of investment in Bitcoin ETFs, it is clear that this situation could turn around. The August decline could result in inflows of $500 million to $1.5 billion.

Nasdaq is also believed to be asking regulators to include spot Bitcoin ETF-based options trading. This will be a decision of the U.S. Securities and Exchange Commission. As a result, Bitcoin becomes a safer option for traders, offering a safe and regulated space. Traditional financial platform.

year of bitcoin

Entering January 2024, Bitcoin’s value has skyrocketed by 150%. Since then, it has been a tumultuous year, with many believing the bull market would last until 2025, but instead it has been a year of ups and downs with major periods of stagnation. It started the year at $44,000, rose toward May, and then fell. Much of this increase was due to spot ETF approvals.

ETFs are exchange-traded funds. This is done through the financial company that buys Bitcoin. This is then offered to investors as shares. Therefore, people who buy ETFs do not own Bitcoin themselves, but are part of an ETF that tracks the value of Bitcoin. This is because it provides a low-cost way to invest in Bitcoin without the need to access a cryptocurrency exchange. This security creates additional interest. individual investor Wealth management advisors are starting to take notice as well.

However, much of the year-to-date rally could also be due to the impending Bitcoin halving event. This occurs in April and occurs approximately every four years. This is when the mining reward is cut in half and the supply of Bitcoin is reduced. The past two halving events have seen significant increases, most of which occurred approximately 6 months after the event. This suggests a date in October when the coin’s value will increase significantly.

These are all factors that could contribute to a Bitcoin bull run from now until the end of the year. As all crypto speculators know, nothing is certain and all that is required is a change of direction from the market. federal reserve system or exchange to change course. Declining sales, ETF inflows, and the lingering effects of the halving could cause Bitcoin to skyrocket. If the September Curse becomes a reality, it could be a great buying opportunity.