TechFlow news, on September 27, according to Bloomberg, bitcoin is on track for one of the largest monthly gains in its history in September, driven by the U.S. shift toward accommodative monetary policy and a global wave of interest rate cuts. Bitcoin has risen over 10% this month, compared to an average decline of 5.9% historically during Septembers over the past decade. Additionally, the small-cap token index has surged more than 20%, indicating that loose financial conditions are energizing the higher-risk segments of the cryptocurrency market.
Major central banks including the Federal Reserve and the European Central Bank cut borrowing costs in September to support economic growth. With investors expecting further stimulus measures, they have rushed into assets ranging from stocks to gold in anticipation of easier monetary conditions.
Sean McNulty, head of trading at liquidity provider Arbelos Markets, noted that bitcoin remains highly correlated with monetary policy, and easing measures by other central banks are also playing a role. Caroline Mauron, co-founder of Orbit Markets, mentioned that the $65,000 price level could remain stable in the short term due to a large volume of options contracts expiring on Friday.
