6 Reasons Why September Could Be a Bullish Month for Crypto and Bitcoin
As the cryptocurrency market enters September, the big question on the minds of every cryptocurrency investor is whether this month will spark the bull run that many have been waiting for. August turned out to be a difficult month for the market, just like the previous months, when Bitcoin and most altcoins were stuck in a correction phase.
Let's take a look at some of the biggest reasons why September could be the start of a bull run:
Bitcoin Looks Oversold: On the daily chart, Bitcoin is in oversold territory. In previous cycles, whenever this has happened, it has usually resulted in a reversal and strong bullish momentum. While this does not guarantee a rally, it does indicate that selling pressure may be drying up.
A stock market correction could help: U.S. stocks, including the S&P 500 and Nasdaq, are currently in a correction. If the stock market stabilizes in September, cryptocurrencies could benefit as risk sentiment returns. Many investors still view Bitcoin and Ethereum as high-beta coins, which influence overall market sentiment.
Federal Reserve and Increased Liquidity: The Federal Reserve is expected to cut interest rates this month, which will inject more liquidity into the market. Furthermore, the global money supply is expanding, especially in the US and China. Liquidity typically flows more into risk assets such as stocks, gold, and cryptocurrencies.
Ethereum and Altcoins on the Rise: Ethereum has been showing relative strength against Bitcoin recently. If this trend continues, it could spark an altcoin rally, which often happens after Bitcoin stabilizes. The altcoin market is in a key area, and a breakout here could turn bullish.
Political and regulatory upside: The US Senate is set to pass crypto-related legislation in October. Markets often move ahead of such events, and September could see positions build based on expectations. Meanwhile, global developments, such as China delaying new tariffs, are also easing the pressure.
Whale Accumulation Signals Confidence: Large Bitcoin holders, often referred to as “whales,” have been quietly accumulating. This is often seen as a bullish signal for the medium-term outlook. Their buying helps create a stronger price foundation, reducing the risk of a deeper correction.