Investing.com – The stock has rebounded after briefly dropping below $63,000 earlier in the week. The leading cryptocurrency, currently trading at $63,950, ended September with a gain of 7.3%, marking its best-ever performance for the month.
“The last few days have been a series of coincidences that have simultaneously reignited optimism in global markets, with cryptocurrencies at the forefront. “Bitcoin is once again feeling the force of FOMO (Fear of Missing Out), which suggests that the market is prepared for further gains,” Kristian Haralampiev, director of structured products at Nexo, told Investing.com.
“However, this bullish outlook is tempered by warnings such as a peak in public sentiment, signaling potential headwinds ahead of even more bullish times ahead.”
The broader cryptocurrency markets took a hit on Monday, with Bitcoin falling 3.7% while other coins such as and saw smaller losses of 2.8% and 1.9% respectively. Several altcoins, including , , and , fell more than 5%.
The stock market was also hit by cryptocurrency-related stocks, with major miners such as Marathon Digital (NASDAQ:), Bitdeer Technologies Group (NASDAQ:), Hut 8 Corp (NASDAQ:) and Pure spark (NASDAQ:) is down 5% to 10%. The largest U.S. cryptocurrency exchange Coinbase (NASDAQ:) fell 6%, while MicroStrategy Incorporated (NASDAQ:) closed down more than 3%.
Meanwhile, US stock indices remained mostly unchanged throughout the day, but fell at the end of the session. Federal Reserve Chairman Jerome Powell addressed expectations of interest rate cuts, stating that while additional cuts are planned, they may not be as aggressive as previous ones.
Despite market volatility, Bitcoin continues to show resilience. Historically, September has been a challenging month for Bitcoin, but this year’s gains mean October could be even stronger.
Known in the cryptocurrency world as “Uptober”, Bitcoin has recorded positive returns on nine of the last October 11s since 2013.
“Unexpected setbacks” coming?
Despite the recent optimism, analysts at research firm Canaccord Genuity advise caution. In a recent report, the broker noted that widespread bullish sentiment could lead to unexpected setbacks.
“We believe the healthiest response for the long-term future of cryptocurrencies in such a scenario would be for BTC to decline, reflecting less need for inflation hedging as interest rates fall and ETH and other crypto assets rising alongside risk stocks as investors become more willing to underwrite long-term growth and innovation.”
The Canaccord analyst further explains that Bitcoin’s halving cycle is often a “critical factor influencing its price action,” and we are currently 163 days post-halving. Historically, major BTC rallies begin around 6-12 months after a halving, so “we could see significant growth soon if previous patterns hold true.”
Despite continued macroeconomic uncertainty, Bitcoin traders remain positive about Q4. Powell’s comments follow a positive period for major cryptocurrencies as Bitcoin posted a third straight week of gains.
