Bitcoin and other cryptocurrencies experienced modest gains on Thursday but remained within a well-established trading range. The positive aspect is that these digital assets are poised to defy historical trends by closing September in the green, a month traditionally challenging for the crypto market.
Over the past 24 hours, the price of Bitcoin increased by 0.5% to reach $26,375. Bitcoin, the largest digital currency, continues to hover around the $26,000 mark, which has provided strong support over the last month. This period has been marked by an unusual lack of volatility and trading activity, reflecting a decrease in investor enthusiasm for digital assets.
Katie Stockton, managing partner at Fairlead Strategies, expressed a short-term neutral stance on Bitcoin, citing the intact 50-day moving average and a slight loss of momentum. This neutral sentiment is consistent with the broader outlook on cryptocurrencies, which has not mirrored the recent excitement in the stock market. The stock market has reacted to macroeconomic factors that also impact Bitcoin.
Long-term, the absence of volatility could be detrimental to digital assets, as they have historically attracted traders seeking the rollercoaster-like nature of cryptocurrencies.
In the short term, Bitcoin, which has been relatively uneventful lately, is on course to make history by ending September with gains. If rare volatility doesn’t disrupt the trend before the end of the month, Bitcoin is likely to finish in positive territory. This would mark a significant milestone as Bitcoin has typically declined during each of the past six Septembers, averaging a 6% loss each September, according to Dow Jones Market Data.
Richard Mico, U.S. CEO of crypto payment and compliance infrastructure group Banxa, noted the resilience of Bitcoin and the broader digital asset market in recent times, especially when compared to sharp declines in equities. Bitcoin’s slight gain for the month is a promising sign for the fourth quarter, particularly for October, historically considered a bullish month.
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Beyond Bitcoin, Ethereum, the second-largest cryptocurrency, increased by over 1% to reach $1,620. Smaller cryptocurrencies or altcoins had more subdued movements, with Cardano remaining flat and Polygon down less than 1%. Memecoins, such as Dogecoin and Shiba Inu, also posted minor gains, with both rising by less than 1%.