cryptoglobe.com
The price of the flagship cryptocurrency Bitcoin has topped the $66,000 as we near the final days of September as it appears to be bucking its historically poor performance for the month amid a wave of interest rate cuts and as the ‘Coinbase Premium’ grows.
In a post shared on the microblogging platform X (formerly known as Twitter), CryptoQuant’s Head of Research Julio Moreno noted that demand in the US helped BTC’s price rally to $65,000, as evidenced by its growing Coinbase Premium Index.
The Coinbase Premium Index s an indicator showing the price gap between Coinbase’s BTC/USD trading pair and Binance’s BTC/USDT pair. When the premium is positive, it shows buying pressure on the exchange is heating up.
A deeply discounted premium suggests weak buying pressure from American investors, a trend that has coincided with past Bitcoin price bottoms.
Higher demand in the US made Bitcoin rallied today towards $65K.
— Julio Moreno (@jjcmoreno) September 27, 2024
The Coinbase premium increased to the highest level in two weeks. pic.twitter.com/YhJItIGNvY
The cryptocurrency’s performance in September from 2010 to 2023,according to CCData, has been an average drop of 4.51%, making it its worst-performing month on record. In contrast, April and November typically show the highest average returns.
The Federal Reserve, European Central Bank, and People’s Bank of China all lowered borrowing costs in September to stimulate economic growth, a move that was met with a positive response from investors who bid up stocks, gold, and other assets.
Gold, as reported, has reached a new all-time high near the $2,700 mark per ounce after surging more than 30% so far this year, marking its best year-to-date performance of this century as the U.S. M2 money supply is reaching a new high.
The M2 money supply, which includes physical currency in circulation, savings and time deposits, and money market funds, has been growing every month since February and is now standing at $21.2 trillion according to Trading Economics.
Notably, Societe Generale has shifted 100% of its commodity allocation to gold, driven by geopolitical risks and a weakening broader commodity market.
The French bank increased its gold holdings to 7% of its total asset allocation, reflecting a 40% quarter-over-quarter rise. This pivot toward gold signals growing confidence in the yellow metal as a safe-haven asset amid ongoing uncertainties in global markets.
Featured Image via Unsplash