A Historic September For Bitcoin, The US Elections As The Next Challenge!

Bitcoin closes a historic month of September despite a recent decline. Analysts are looking ahead, pointing to the U.S. elections as a potential catalyst for the market.

A turbulent end of the month for Bitcoin

Against all odds, Bitcoin ends its best September in over a decade. Despite a drop of nearly 4% in the past 24 hours, the leading crypto shows a monthly increase of around 7%.

This performance stands in stark contrast to the reputation of September, which is usually considered an unfavorable month for digital assets.

However, this overall increase masks a more nuanced reality. The crypto market as a whole experienced a difficult day on Monday, with significant declines for several major altcoins. XRP, Cardano, and Polkadot all recorded drops of over 5%. Even sector-related stocks were not spared, with Marathon Digital and Coinbase dropping 10% and 6% respectively.

Eyes on November

While October historically enjoys a favorable reputation in the crypto world, nicknamed “Uptober” by aficionados, experts remain cautious about the short-term outlook. Charlie Morris, founder of ByteTree, highlights the risk of a trend reversal, precisely because of the prevailing optimism: “The popularity of an idea often indicates that investors have already placed their money before the event.”

The real catalyst could be the U.S. elections in November. Jake Ostrovskis, a trader at Wintermute, observes a positioning of investors in the options market that suggests “support for a post-election rally“. This anticipation of a deferred rise is mainly due to the political uncertainty that could weigh on the markets in the coming weeks.

In conclusion, although Bitcoin surprised in September, caution is still required. The coming weeks could see a consolidation of the market before a potential post-election surge. Savvy investors will keep a close eye on the evolution of the U.S. political landscape, a key factor for the near future of the crypto market.