Bitcoin has had one of its best Septembers in years, showing over 7% growth according to Coingecko data. Analysts at QCP Capital highlight the factors that could sustain this risk-on sentiment as we move into October.
As the third quarter wraps up, both U.S. equities and bitcoin have exceeded expectations. The S&P 500 index rose approximately 1.5% in September and 5.1% for the third quarter, marking its strongest year-to-date performance since 1997. Historically, September averages a loss of around 6% for bitcoin, making this month’s gains noteworthy.
QCP Capital maintains a positive medium-term outlook for bitcoin, suggesting that a breakout above $70,000 could provide further upward momentum. The analysts noted significant factors sustaining this risk-on sentiment, including China's benchmark stock index posting its largest daily gain since 2008 following economic stimulus measures.
Goldman Sachs reported hedge funds are purchasing U.S. tech and media stocks at a rapid pace, spurred by the Federal Reserve's recent policy changes. While the recent equity rally may face challenges during quarterly earnings announcements in mid-October, QCP Capital anticipates bitcoin will benefit from any equity market retracement, given its nature as a risk-on asset.
In summary, bitcoin's strong performance in September has set a positive tone heading into October, with various market dynamics indicating potential for continued growth.
