Three reasons why Bitcoin refused to drop in September

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Last Updated on 6 November 2023 by CryptoTips.eu

A new month, a new beginning. Bitcoin is entering October after refusing to move lower in September. That is remarkable, because normally September is historically very bad for the largest cryptocurrency (while October is very good). So why did Bitcoin continue to trade stubbornly above $25,000? We believe there are three reasons for this.

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Inflation

First, global inflation in the West appears to finally be coming down. We clearly say the West, so don’t count on Turkey or Argentina seeing skyrocketing inflation falling to these levels any time soon.

In the eurozone, the official inflation level fell to 4.3% in September, mainly due to the fall in energy prices and the price ceilings imposed by some countries on basic products sold in supermarkets (aka Spain and France).

Investors see this as a sign that sooner or later the ECB (and the Fed over in the US) will finally stop raising interest rates. That is of course positive news for all markets, including the crypto market, and especially Bitcoin, which is seen as a risky investment.

In times of low interest rates, investors dare to put more money into risky investments, so pay close attention to tech companies and crypto when interest rates finally go lower.

Halving

Secondly, many companies on Wall Street now realize that Bitcoin is historically very bullish in the months before and after a halving, again proving that the scarcity of Bitcoin (there are 21 million of them, no more and no less) in particular affects the price. The next halving will take place in less than a year and so investors are stocking up.

ETF

Thirdly, the American stock exchange watchdog SEC is still trying to stop it, but the same companies on Wall Street also realize that a Bitcoin ETF (for which even Blackrock has submitted an application) will one day actually be given a green light. If that application is approved, traditional investors will invest directly in Bitcoin via a trusted Wall Street advisor, which will create very high demand.

That is why analysts are convinced that Bitcoin has been refusing to go below $25,000 for months, because Wall Street banks are buying up any available Bitcoins below that price.

The number of long-term investors in Bitcoin now stands at 76%, an absolute record.

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Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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