Bitcoin Blows Past Historical September Slump With 10% Surge as ‘Coinbase Premium’ Surges
The price of Bitcoin, the leading cryptocurrency, has exceeded $66,000 ahead of the end of September, defying its usual weak performance during this month. This surge in price comes as interest rates are being cut and the ‘Coinbase Premium’ continues to grow.
Julio Moreno, the Head of Research at CryptoQuant, highlighted on Twitter that the demand for Bitcoin in the US has driven its price to $65,000, as indicated by the increasing Coinbase Premium Index. This index measures the price difference between Coinbase’s BTC/USD trading pair and Binance’s BTC/USDT pair. A positive premium suggests increased buying pressure on the exchange.
In the past, when American investors showed weak buying pressure, marked by a deeply discounted premium, it coincided with Bitcoin reaching price bottoms.
The performance of Bitcoin in September from 2010 to 2023 has typically shown an average drop of 4.51%, making it the worst-performing month historically. In contrast, April and November have demonstrated the highest average returns.
Central banks such as the Federal Reserve, European Central Bank, and People’s Bank of China have all cut borrowing costs in September to stimulate economic growth. This move has received a positive response from investors, leading to an increase in stock prices, gold prices, and other assets.
Gold, in particular, has reached a new all-time high of nearly $2,700 per ounce, surging by over 30% this year. This marks its best year-to-date performance of the century, fueled by the continuous growth of the U.S. M2 money supply, which now stands at $21.2 trillion.
Societe Generale, a French bank, has shifted its entire commodity allocation to gold, increasing its gold holdings to 7% of its total asset allocation. This change signifies growing confidence in gold as a safe-haven asset amidst ongoing uncertainties in global markets.
Despite the historical trend, Bitcoin has defied its poor September performance with a notable surge, reflecting the increasing interest and demand in the cryptocurrency market.
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