Key facts:
So far this month, its price has risen by more than 7%.
The interest rate cut announced by the Fed boosted its price.
September is usually a difficult month for financial markets due to seasonal reasons. In the northern hemisphere, summer is ending and the pace of economic activity slows down due to the holidays.
For example, bitcoin (BTC) has shown a bearish trend in September, as In only 3 of the last 11 years has there been a price increase in that month, which shows its historical behavior.
However, the current performance of the digital currency created by Satoshi Nakamoto is breaking with that pattern and at the time of publication of this note it records an increase of 7.17% so far in the ninth month of 2024.
According to records collected since 2013 by the explorer CoinglassBTC is having its best performance in September.
Despite improving its performance at this time of year, the price of the digital asset has been in a corrective consolidation phase for the past 6 months, when it hit the $73,700 barrier in March 2024its historical maximum.
At the time of writing, the price of bitcoin is $63,200.
The Fed’s announcements
As CriptoNoticias reported, the United States Federal Reserve (Fed) confirmed a reduction of the annual interest rate by 0.5 points, bringing it to 5%. The announcement is having a direct impact on the price of the asset, which registers an increase of more than 6%, its highest level since the end of August.
This is the Fed’s first cut since March 2020, which takes some pressure off the aggressive monetary policy of the organization led by Jerome Powell to combat inflation.
Following the announcement, Powell assured“This decision reflects our growing confidence that, with an appropriate recalibration of our policy stance, the strength of the labor market can be maintained.”
While the market may have reacted with volatility following the cut, upcoming US employment data could provide more certainty about the direction the Fed will take in its monetary policy.
This is important for bitcoin and cryptocurrencies because a rate cut lowers the cost of borrowing and increases liquidity. That’s when the market wakes up. the appetite of companies and investors for assets considered riskywhich generate higher returns but are exposed to market fluctuations.
