Bitcoin (BTC) looks set to post its best September in a decade, surpassing $65,000. This unusual price raise can be attributed to several key factors.

Reasons for Bitcoin’s impressive September gains

Historically, September has consistently been the worst month for BTC in terms of prices. However, the peak cryptocurrency is currently on track to post its best September in at least a decade, driven by several macroeconomic events.

On September 18, the United States Federal Reserve (Fed) began its rate-cutting cycle for the first time in four years, cutting rates by 50 basis points (bps) in response to slowing inflation and rising unemployment.

The rate cut immediately impacted risky assets, including BTC, which has appreciated by over 10% since the cut. For comparison, according to the chart below published by CoinGlass, the average price decline of Bitcoin in September over the last decade was 3.45%.

In line with the Fed’s decision, the European Central Bank (ECB) and the People’s Bank of China (PBoC) have lowered borrowing costs to stimulate their economies. This further pushed the BTC price towards previous highs.

Bitcoin’s halving is another key factor that may now begin to show its impact on the digital asset’s price action. Bitcoin went through a halving earlier this year in April, reducing block confirmation rewards for miners from 6.25 BTC to 3,125 BTC.

Previous data indicates that halvings have typically been a bullish boost for Bitcoin due to the resulting supply shortage. For example, in May 2020, the BTC price rose from around $8,900 pre-halving to over $64,000 in April 2021 – an eightfold price raise in less than a year.

Meanwhile, U.S. Bitcoin Exchange spot funds continue to enjoy growing interest from both retail and institutional investors as they recorded total daily net inflows of $365.57 million on September 26, the highest since tardy July. Since their launch, cumulative net inflows of Bitcoin ETFs now stand at $18.31 billion.

Cautious optimism is the key to defeating the BTC wave

While BTC appears to have recovered from its typical September slump, it is worth emphasizing that the leading digital asset still has some challenges to overcome. essential price levels before reaching a modern all-time high (ATH).

As previously reported, Bitcoin’s Relative Strength Index (RSI) cut below 80 on the monthly chart, signaling that the cryptocurrency’s bullish momentum may be fading after an enthusiastic buying spree.

A recent one at that report by cryptocurrency exchange Bitfinex noted that despite its recent upward move, Bitcoin must decisively overcome the forceful resistance level of $65,200 to continue its positive momentum. The good news for bulls is that BTC is holding steady at $65,674, up 2% in the last 24 hours.

Featured image from Unsplash, charts from CoinGlass.com and Tradingview.com