Bitcoin Price Prediction for September 2024: Here’s What to Expect

As summer fades and fall arrives, the crypto market is set for some exciting changes. Bitcoin’s dramatic journey is far from over, and September could be a game-changer. With the Federal Reserve potentially lowering interest rates, significant movements are expected in the crypto world.

Are you ready to witness history in the making?

Fed Policy Shift Could Influence Crypto

One of the major factors driving the crypto market this September is a possible change in Federal Reserve policy. At the recent Jackson Hole symposium, Fed Chair Jerome Powell hinted that “The time has come for policy to adjust,” suggesting that rate cuts might be on the horizon.

While Powell suggested that a rate cut could occur in September, but even noted that the final decision will depend on upcoming economic data.

With U.S. money market funds reaching a record high of over $6.2 trillion, investors are betting on lower rates. Typically, lower rates weaken the dollar, making high-risk assets like Bitcoin (BTC) and Ethereum (ETH) more appealing.

Bitcoin ETF Investment Surges

Over the past 8 days, Bitcoin ETFs have experienced a massive influx of capital, totaling $17.86 billion by the end of August. This surge shows that traditional financial sectors are still very interested in Bitcoin. 

According to the Kobeissi Letter, institutional investors are adjusting their portfolios in response to this trend.

This strong backing from Wall Street may help protect Bitcoin and Ethereum from potential declines and highlight their growing appeal as alternative investments.

Stablecoins: An Indicator of Crypto Health!

In August, the total market cap of stablecoins grew from $163.8 billion to $169.8 billion, adding $6 billion. This increase shows that more money is flowing into the crypto market. 

Since stablecoins help traders and investors move in and out of positions, their growth suggests that liquidity in the crypto space is strong.

In terms of mining, Bitcoin’s difficulty is expected to rise slightly in the coming days, reflecting strong ongoing network activity. As of now, Bitcoin’s difficulty stands at 89.47 trillion at block 858,940, with a 0.93% increase over the past 24 hours.

Bitcoin: Historical Trends & Current Performance

Historically, September has been a month of correction for Bitcoin. Over the past decade, Bitcoin has never ended September with a major gain. This trend suggests that September often clears out panic sellers and sets a solid support level before a potential bull run.

Perhaps, Bitcoin’s recent performance shows a tight trading range between $59,013.54 and $60,927.12, reflecting some consolidation.

However, it is trading above key moving averages, including the 50-period, 100-period, and 200-period SMAs. This suggests a short-term bullish sentiment, with the potential for a strong move if these levels hold.

As of now, Bitcoin is currently trading at $59,489, showing a slight increase over the past 24 hours. However, despite this recent price rise, trading volume has dropped by 19%. The market cap stands at $1.17 trillion.

Will Bitcoin’s September surprise be a bull run or a bear trap? We are yet to see.