While September often sees downward pressure on various asset classes, including cryptocurrencies, crypto analysis firm QCP Capital is highlighting a potential bullish trend for Bitcoin in the coming months. Their analysis points to a consistent pattern of strong bullish seasonality for Bitcoin in October, with positive returns in eight of the last nine years and an average gain of 22.9%. This historical trend has not gone unnoticed by traders, with QCP Capital reporting significant call option buying in the market, particularly a notable 150 contracts for $80,000 Bitcoin calls expiring in December. This buying suggests bullish sentiment among investors.
The analysis suggests a strategic approach for investors: accumulating Bitcoin during September’s potential dip, with an eye on potential profits in October or towards the year-end. While the price of Bitcoin has dropped by 6.7% in the past seven days, falling to a low of $58,892, Casey Grooms, co-founder of Soulbound, attributes this decline to macroeconomic uncertainties, particularly surrounding Federal Reserve policy decisions. Grooms highlights the potential for earlier-than-expected interest rate cuts, given that the Personal Consumption and Expenditure (PCE) reading, the Fed’s preferred inflation gauge, remains steady at 2.5%, close to the 2% target. He also points out that other central banks, including the Bank of England and the Bank of Canada, are already implementing rate cuts.
“If these monetary policies become prevalent, global financial market liquidity is bound to increase, a trend that might crunch the buying power of fiat,” Grooms explained, suggesting potential tailwinds for Bitcoin and other cryptocurrencies. The upcoming Benzinga’s Future of Digital Assets event on Nov. 19 is poised to be a crucial platform for discussing these trends and their potential impact on the future of Bitcoin and the wider digital asset ecosystem.
