Bitcoin is expected to have its most optimistic September in more than ten years, despite a recent decline of over $3,000. Here are several possible explanations for this sudden upsurge, which occurred particularly in the second half of the month, along with some observations about whether or not it can continue.

Strong Inflows into Bitcoin ETFs Coincide with Price Movements

Significant net inflows have been observed by CryptoQuant into spot Bitcoin ETFs, which drew over $1 billion last week and have demonstrated profitability for 13 out of the previous 15 days. On September 9, not long after Bitcoin fell below $53,000, this pattern began. After crossing the 155-day threshold, certain ETF investors are now Long-Term Holders, a development that CryptoQuant cautions may indicate the end of a bull market.

Fed Rate Cut Boosts BTC Surge

The Federal Reserve's 0.5% interest rate drop on September 18, the first in more than four years, has been a major contributor to Bitcoin's price increase since early September. As riskier assets like Bitcoin become more appealing due to decreasing interest rates, BTC increased from $59,000 to over $66,500. By year's end, Bitcoin might continue to rise and possibly hit new all-time highs due to more rate cuts that are anticipated.