Bitcoin has reclaimed the critical $60,000 level for the first time in two weeks, marking a pivotal moment for the cryptocurrency. While September is historically a bearish month for Bitcoin, this time analysts believe things might be different. The current rally is backed by growing institutional interest, suggesting a potentially stronger foundation for future gains.
On September 13, Bitcoin surged past the $60,000 mark, a price level it hadn’t reached since the end of August. Crypto analyst Rajat Soni highlighted the significance of this move in a post on X (formerly Twitter). According to Soni, this time, the rally is not driven by emotional retail investors, but by institutional participants who are ready to buy up Bitcoin that individual traders may sell.
Soni pointed out that while Bitcoin has been consolidating above $50,000 for the last six months, this price zone previously saw heavy selling pressure, especially from retail investors in 2021. Back then, many traders were quick to sell based on fear or excitement, leading to price volatility. Now, with large institutions stepping in, the market dynamics seem to have shifted.
“Institutional investors are here, and they’re ready to buy everything retail investors want to sell,” Soni emphasized. He also warned that traders who sell Bitcoin now may find themselves paying more to re-enter the market later. This shift in the investor landscape could lead to more sustained price support, making this rally potentially more stable.
September has traditionally been a challenging month for Bitcoin, with data showing that the asset tends to underperform. According to Coin Glass, Bitcoin has posted an average monthly loss of 4.49% over the past 11 years. In fact, many traders expect a price dip during this time due to market corrections and reduced trading volumes.
However, this year may break the trend. Jelle, a pseudonymous crypto trader, noted that Bitcoin is on track to close September in the green, something that has only happened three times before—in 2015, 2016, and 2023. This unexpected performance has led some to speculate that Bitcoin could defy its typical September slump.
Bitcoin’s price has seen a notable 12.40% increase over the past week, trading at $60,596 as of September 14, according to Coin Market Cap. This upward movement stands in stark contrast to its usual September performance, where it typically struggles to maintain momentum.
As Bitcoin continues to climb, its market dominance has reached the highest levels of the current cycle. Bitcoin’s dominance, a metric that measures the percentage of the total crypto market cap held by BTC, is now sitting at 57.80%, according to Trading View data. This dominance suggests that while other cryptocurrencies (known as altcoins) are struggling, Bitcoin is becoming the go-to asset for investors seeking safer returns in the crypto space.
Reflexivity Research co-founder Will Clemente pointed out some “early signs of life” in Bitcoin’s technical indicators. Clemente believes that Bitcoin may soon reclaim its 200-day moving average (200dma), which would mark its first higher high in six months. This would be a critical technical signal for traders looking for a confirmation of a sustained upward trend. If Bitcoin continues to hold above these key levels, it may trigger renewed interest in altcoins, though for now, BTC remains the dominant player.
What makes this particular rally stand out is the growing involvement of institutional investors. In 2021, Bitcoin’s price movements were largely driven by retail traders, who are known for their emotional responses to market fluctuations. These investors often sell at the first sign of trouble, leading to sharp declines in Bitcoin’s price. However, in 2024, institutional interest has become a more significant factor, with large players like hedge funds and asset managers entering the market in greater numbers.
Institutional investors tend to take a long-term view and are less likely to react impulsively to short-term price movements. This shift in the investor base could provide a more solid foundation for Bitcoin’s price, potentially reducing the volatility that has plagued the market in the past. With institutions holding large amounts of Bitcoin, the market could see less selling pressure during downturns, creating a more stable price environment.
Furthermore, Bitcoin’s status as “digital gold” is becoming more pronounced as it continues to attract investors looking for a hedge against inflation and economic uncertainty. The ongoing rise in BTC’s market dominance, combined with its resilience during a traditionally bearish period, suggests that Bitcoin may be maturing into a more reliable store of value, much like its precious metal counterpart.
While Bitcoin’s recent surge above $60,000 is encouraging, it remains to be seen whether this momentum can be sustained. Historical data suggests that September could still bring some challenges, but the increasing participation of institutional investors could change the dynamics this time around.
If Bitcoin can continue to consolidate above $60,000, it may pave the way for further gains, especially if traditional financial institutions keep pouring capital into the crypto market. Analysts will be watching closely to see if Bitcoin can maintain its current upward trajectory, especially as it nears the end of a historically difficult month.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
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