Due to the activities of Bitcoin Whales, the Bitcoin September price this year might end higher than it ever had in this decade.
This month’s global rate cuts have significantly bolstered the global cryptocurrency Bitcoin, the largest in the world. The current price of bitcoin is $65,213.85, with a market capitalization of $1.288 trillion, up over 3.5% in the past 24 hours. Additionally, the daily trading volumes have increased by 50%, indicating a robust level of investor interest.
The Chinese central bank, the PBoC, also announced a rate cut with $140 billion in liquidity infusion, following the 50 basis points rate cut by the Fed in mid-September. As the asset class prepares for the most successful September closing in the past decade, this money surplus appears to flow into Bitcoin. BTC’s most recent robust double-digit returns in September occurred in 2012.
Bitcoin has demonstrated a robust correlation with macro indicators throughout its history. According to Bloomberg, Sean McNulty, the director of trading at liquidity provider Arbelos Markets, stated:
“Bitcoin’s correlation with monetary policy continues to be highest with respect to the Fed. Other central banks easing certainly helps too.”
Additionally, some market analysts believe that the $65,000 level is somewhat impassed in light of the Bitcoin options expiration on Friday. The expiration of $5.8 billion in Bitcoin options is scheduled for later today, with a put call ratio of 0.64, indicating that bulls are in control of the expiration. Chris Newhouse, director of research at Cumberland Labs, stated:
“We’re at $65,000 levels now, and slowly testing higher, either we break out and maintain that as a new level of price discovery, or we don’t break higher and see a sharp decline.”
Santiment, a crypto analytics platform, reported that the price of Bitcoin has surpassed $65,000 for the first time since August 1. The consistent accumulation of large holders, such as whales and sharks, has significantly influenced the price surge. Wallets holding ten or more BTC have amassed $4.08 billion in Bitcoin over the past six months, preventing any sustained market downturns.
Spot Bitcoin ETF Inflows Increase in the Context of BTC Price Surge
The highest single-day flows in September were recorded on Thursday, September 26, when the US spot Bitcoin ETFs recorded a massive $365 million inflow. This has resulted in six consecutive days of inflows into the ETFs, indicating that institutional interest in Bitcoin is increasing in anticipation of the Q4 bull run.
The Ark Invest Bitcoin ETF (ARKB) was the most successful in the club, with $113 million in inflows. BlackRock’s IBIT followed with $93 million in inflows. Additionally, the trading volume for IBIT was an astonishing $1.52 billion.
Investors have become optimistic in response to the global rate cuts, anticipating that the price of Bitcoin will increase to $100,000 and beyond in Q4. Arthur Hayes, the CEO of BitMEX, predicted that a volatility supercycle could result in a substantial BTC rally soon.