Bitcoin (BTC) is on track to end September with a 9% gain, marking its best performance for the month since 2013. Historically, September has been the worst month for Bitcoin, often ending in the red. However, this time, the cryptocurrency has broken the trend, positioning itself for a potential rally as it enters October—a month known for strong performance.
Bitcoin Defies Historical September Slump
Since 2013, Bitcoin has closed September in negative territory eight times, but this year it’s on track to gain at least 9%. This puts Bitcoin on a solid footing for October, which is typically a bullish period for the asset. Historically, when Bitcoin ends September in the green, it tends to close higher in October, November, and December.
In contrast to September’s usual slump, Bitcoin has only finished two Octobers in the red since 2013. During this time, the asset has experienced gains of up to 60% in October, with an average increase of 22%. This seasonal trend, known as seasonality, often drives predictable changes in asset prices throughout the year. For Bitcoin, the end of the year is particularly strong, with December benefiting from the so-called “Santa Claus” rally.
What’s Driving Bitcoin’s Rally?
Bitcoin’s surprising September gain can be attributed to several key factors. Global monetary easing policies, a weakening yen, and rising institutional investments have all contributed to Bitcoin’s recent surge. Additionally, both political parties in the U.S. have shown favorable sentiment toward cryptocurrencies ahead of the November elections, further boosting confidence in the market.
Experts believe this trend will continue into the final quarter of 2024.
With favorable conditions and political support, investors may turn to “buy-the-dip” strategies, pushing Bitcoin higher as the year progresses.
