September Bitcoin predictions: What's in store?

Analysts share their take.

Author

Daniel Akpobare
September 03, 2024

GM Explorer,

Are you a Bitcoin enthusiast eagerly awaiting the potential interest rate cuts in the US? Well, some analysts have insights that we’re sure you’ll want to hear!

Here’s what we got for you today:

  • 🤔 September Bitcoin predictions: What's in store?

  • 🤯 Crypto whales offload $326 million in Cardano!

  • 🧱 Around The Block: Ukraine is working to legalize cryptocurrency to fill its coffers.

🤔 September Bitcoin predictions: What's in store?

This September is shaping up to be a pivotal month for Bitcoin!

Historically, September has been a rocky month for Bitcoin, with average returns dropping by -4.78% since 2013.

But this year, the potential for Federal Reserve rate cuts adds another layer of complexity to market predictions.

And despite that, the predictions are already rolling in!

Bitfinex analysts have predicted that Bitcoin could dip to the mid-$40,000 range due to potential US interest rate cuts.

They point out that while Bitcoin fell by 50% during the last aggressive rate-cutting cycle in 2019, the current conditions are different this time around.

Bitcoin has gone through two halving events, and the world economy isn’t dealing with a global pandemic.

So, with that in mind, and assuming the price of BTC is around $60,000 before interest rates are cut, we could be looking at a potential bottom between the low $50,000 and $40,000 levels.

That's a pretty bold prediction, right? But hold on, there’s more!

The analysts even lay out two(2) possible outcomes for how things could play out:

  • If a 25-basis-point rate cut occurs, it could start a gradual uptrend for Bitcoin after an initial sell-the-news event.

  • While a more aggressive 50 basis point cut might trigger an immediate spike in Bitcoin's price of up to 8% due to heightened liquidity expectations, but that surge could be short-lived.

As convincing as all this might sound, don't forget the keywords here are ‘if’ and ‘could,’ so don't get too hung up on it.

And given September’s historical volatility, we better brace up for a rollercoaster month.

🤯 Crypto Whales Offload $326 Million in Cardano!

Cardano’s (ADA) price is struggling to break out of its bullish pattern, and it looks like a breakout might be delayed due to current market conditions.

For one, the altcoin appears overvalued, with its Network Value to Transaction (NVT) ratio hitting a yearly high of 6.43.

An overvaluation like this is often a bearish signal, suggesting corrections or slower rallies ahead.

In addition to being overvalued, the altcoin’s key investors and large wallet holders, the crypto whales, also show no bullishness.

Addresses holding between $100,000 and $1 million worth of ADA have offloaded over $326 million worth of ADA (about 15% of their holdings) in the last ten days, likely in response to the recent Chang hard fork event.

And here’s the thing: Such massive sell-offs, especially by major holders, can trigger a market correction.

This often happens as the initial excitement around significant events fades, causing a drop in token prices.

If the market and investor sentiment don't shift, we might be in for a long wait for recovery.

Check out the full story for all the details – there's more to uncover!

🧱 Around The Block

That's all we've got for you today.

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Catch you soon.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.

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