Bitcoin Poised for potential September Rebound as Ether Cools
Bitcoin’s market dominance may see a resurgence in September,despite a summer of underperformance compared to other cryptocurrencies. while Bitcoin is down 7% in August, Ether (ETH) has gained 17%. Over the last two months, Bitcoin has risen less than 1%, significantly trailing ETH’s 74% climb, leading to a 5% decline in bitcoin’s market share.
However, analysts suggest that a choppy September trading environment, coupled with the influx of publicly traded companies heavily invested in crypto, could favor Bitcoin as a short-term investment. Matthew Sigel of VanEck notes that if retail investor appetite wanes, these stocks may suffer, perhaps making Bitcoin an outperformer.
Historically, September is a weak month for Bitcoin, averaging a 3.7% decline (median 4.3% as 2013). Though,Bitcoin has rallied in all but two Octobers as 2013 - a period known as “Uptober” – with average and median October returns around 21%.
Satraj Bambra, CEO of Rails, predicts Bitcoin will ”chop around” at the beginning of September, representing potential local highs for the ETH-BTC ratio. This suggests Ether’s outperformance may cool, allowing Bitcoin to regain some ground. The ETH-BTC ratio measures Ether’s performance against Bitcoin; a rising ratio indicates Ether is outperforming.
Investors are closely watching the Federal Reserve’s September 16-17 meeting, following Chair Jerome Powell’s hints at a potential interest rate cut. Bitcoin typically thrives in environments with increased liquidity. Despite remaining vulnerable to market sell-offs, Bitcoin is expected to be supported by continued accumulation and ETF inflows. bitcoin previously reached a high of nearly $125,000 on August 13th.
