cryptobriefing.com
Bitcoin surged to $66k today, setting a fresh two-month high and marking its best performance ever in September. This rally comes as global economic factors and institutional demand combine to drive the token price upward.
Bitcoin’s price increase mirrors the sharp rise in Chinese stocks, fueled by China’s recent economic stimulus measures. The Shanghai Composite Index recorded its best week since 2008, thanks to the stimulus, which also boosted BTC by 3% week-to-date.
“This feels frighteningly familiar,” commented trading resource The Kobeissi Letter on the sudden market rise.
In the US, the FED’s recent 50-basis-point rate cut, announced on September 18, provided further momentum. The S&P 500 has set repeated all-time highs following the announcement, while the Personal Consumption Expenditures (PCE) Index print for August met market expectations.
The next Fed meeting in November could see another rate cut, with the odds of a 50-basis-point cut standing at 52% according to the CME Group’s FedWatch Tool, further fueling market optimism.
Institutional demand remains strong, with BlackRock, continuing to buy Bitcoin. BlackRock has purchased more Bitcoin this week than any exchange-traded fund (ETF) has sold in the past three weeks. Positive inflows continue across other institutions offering Bitcoin ETFs, with yesterday’s ETF inflows reaching $365 million—the highest in over two months.
Adding to the bullish sentiment, Binance founder Changpeng Zhao (CZ) will be released from jail today. With China printing money, the Federal Reserve cutting rates, and institutional interest at an all-time high, Bitcoin’s strong September could pave the way for continued bullish action in October, which has historically been the best month for Bitcoin.