The world’s most popular cryptocurrency, Bitcoin, is having a great September, with the price posting its best September since 2016. On Wednesday, September 30th, BTC sellers have their eyes set on 27.5K, as optimistic investors continue to drive the digital currency to new highs. The renewed surge in prices comes after a month of record-breaking growth in August and continuing into September, with the growth showing no signs of slowing down.
1. Bitcoin Prices Surge in September — Best Month Since 2016
Cryptocurrency enthusiasts and traders welcomed a surge in Bitcoin prices during the month of September 2020. The digital asset rose almost 25%, bringing the price up from approximately USD$10,300 to USD$12,800 – its highest level since May 2019.
The increase marked Bitcoin’s best month since October 2016, a feat only achieved due to a strong market rebound and the entry of numerous institutional investors into the space. Institutional-level traders are believed to have driven the bulk of the surge, since smaller retail investors have generally been overshadowed by larger, more experienced players.
The surge corresponded with a host of trends in the industry, including:
- More centralized exchanges adopting crypto. Large exchanges like PayPal and Square Inc. have started to offer cryptocurrency-based services, resulting in more access and exposure to the industry.
- Growing number of Bitcoin derivatives. With new investment banking products like CME Bitcoin futures entering the space, more investors are able to trade on Bitcoin prices without actually buying the coins.
- Record-breaking transactions. The month of September saw a new daily transaction record, reaching a whopping 554,255 subject to a USD$23 billion activity.
Though the future of Bitcoin’s price remains to be seen, September certainly provided good news to those in the space.
2. BTC Sellers Eye $27,500 Price Point
Bitcoin (BTC) sellers look on optimistically to the upcoming $27,500 price point. The upward momentum on the crypto-market continues and BTC sellers believe the surge should continue to the next significant price point in November.
Last month’s all-time-high of $19,860 was set on November 8th, before sellers had to endure a bit of a price correction. The resulting dip in BTC’s value had many believing a reversal in momentum had taken place. After some weeks, however, BTC sellers are more positive than ever, forecasting the next $27,500 point.
What to look for this month:
- Expect BTC’s value to near $27,500 before the month’s end.
- Virtuous cycle of BTC value increases could continue beyond.
- Watch for sites predicting short-term price points.
3. Factors Contributing to BTC Rally
The Bitcoin rally of 2021 saw some of the greatest gains in the history of cryptocurrency markets. Many experts point to a number of key factors that have contributed to its newfound success. The most decisive of these are listed below.
Positive Regulatory Environment – Although the regulatory environment of cryptocurrencies remains unclear in many jurisdictions, there has been a marked shift towards acceptance in the US and Europe. This has prompted strong institutional investment from some of the biggest Wall Street players such as Microstrategy and Square. Institutional capital has been essential to the rally seen in recent months, as it provides both financial stability and public legitimacy to the market.
Weak US Dollar – The US Dollar Index has been on a continuous downward trend since March 2020. This trend has kept up some of the buying pressure on cryptocurrencies, particularly Bitcoin, as it is seen as a store of value when traditional currency loses its purchasing power.
Increased Adoption of Bitcoin – As more and more businesses, from Tesla to JPMorgan Chase, start to accept Bitcoin as payment, its adoption is climbing. This influx of buyers has provided additional fuel for the rally, pushing prices higher. Moreover, as financial institutions start to offer Bitcoin-based products, such as futures contracts, more entry points for investors have been created.
4. Analysts Weigh In On Bitcoin Price Performance
Bitcoin’s price performance is a hot topic for anyone interested in digital currencies, and analysts in the industry have weighed in to provide their viewpoint. Here are some of the most salient points from their insights.
- Increased Regulation and Institutional Adoption: Analysts have argued that while investment in Bitcoin is still in its early stages, increasing regulations from governments worldwide could make the cryptocurrency safer and more attractive to institutional investors.
- Drastically Varied Prices: Bitcoin prices can vary wildly depending on market conditions. Analysts believe that understanding the nuances of these prices is key to predicting the cryptocurrency’s future performance.
- Educated Investment: Despite Bitcoin’s potential for swift increases in value, analysts recommend that all investors should conduct their due diligence in order to make the most educated investments.
Ultimately, analysts agree that Bitcoin’s price performance should be closely monitored and assessed on a case-by-case basis as the market dynamics shift and evolve. Having the latest knowledge of the trends and developments in this rapidly changing area is crucial to making informed decisions.
September is coming to an end and so is the tremendous success Bitcoin has seen this month, with prices posting their best September since 2016. Although a rise up to $27.5K for BTC sellers seems possible, only time will tell if this trend is set to continue throughout the rest of the year. Whatever happens, this strong month has certainly given Bitcoin bulls something to be thankful for.