Bitcoin Surges Past $66K, Achieving Record September Gains

Key Insights

Bitcoin and global equities rise on the back of stimulus measures in China and interest rate reductions by the U.S. Federal Reserve.
Institutional investments, spearheaded by BlackRock, are fuelling significant inflows into Bitcoin, reaching the highest level for ETFs in two months.

Bitcoin climbed to $66k today, achieving a fresh two-month peak and recording its best September performance to date. This surge is attributed to favorable global economic conditions and substantial institutional interest.

The rise in Bitcoin’s value parallels a significant upturn in Chinese equities, spurred by the country’s recent economic stimulus efforts. The Shanghai Composite Index experienced its most robust week since 2008, a move that also elevated BTC by 3% week-to-date.

“This feels frighteningly familiar,” noted the trading analysis resource, The Kobeissi Letter, in reaction to the market surge.

In the U.S., the Federal Reserve’s recent 50-basis-point rate cut, announced on September 18, has further energized the market. The S&P 500 has reached new all-time highs following this announcement, while the Personal Consumption Expenditures (PCE) Index for August matched market forecasts.

The upcoming Fed meeting in November may result in another rate cut, with the likelihood of a 50-basis-point reduction estimated at 52% according to the CME Group’s FedWatch Tool, heightening market optimism.

Institutional demand remains vigorous. BlackRock has acquired more Bitcoin in this week than any ETF has liquidated in the past three weeks. Positive inflows are observed from additional institutions managing Bitcoin ETFs, with yesterday’s ETF inflows totaling $365 million—the most significant amount in over two months.

Amplifying the bullish outlook, Binance’s founder, Changpeng Zhao (CZ), is set to be released from custody today. Given China’s monetary easing, the Federal Reserve’s rate cuts, and peak institutional interest, Bitcoin’s impressive September performance could set the stage for continued upward momentum in October, historically regarded as Bitcoin’s strongest month.