Bitcoin Rebounds After September Slump, Market Eyes Macro Catalysts and Election Impact

Bitcoin is experiencing a strong recovery, gaining 5% and reaching over $57,000 after a difficult start to September, where its price briefly dipped below $53,000 last Friday. The crypto market leader is outperforming the broader market, with the CoinDesk 20 Index only advancing by 4.2%. Meanwhile, Ethereum (ETH) is trailing behind, posting a 3% rise to $2,341.

The cryptocurrency market’s gains coincide with a recovery in U.S. stocks, where the Nasdaq and S&P 500 both saw a 1.15% increase on Monday. Despite this bounce, Bitcoin remains down about 3% for September and has dropped over 20% since its all-time high of over $73,000 in March.

Greg Cipolaro, global head of research at NYDIG, commented on the lack of significant near-term catalysts for Bitcoin in his weekly update. He pointed out that August and September are historically weak months for the cryptocurrency, but reminded that October and Q4 have generally seen stronger price performance.

With a few weeks left until Q4, Cipolaro suggested that Bitcoin’s short-term movement could be influenced by external factors like employment data, inflation reports, and Federal Reserve policies. He also mentioned the upcoming U.S. presidential election in November, noting that while Donald Trump has been supportive of crypto, Kamala Harris’ stance remains less clear. The outcome of the election could have significant implications for the industry, but until then, Bitcoin may continue to follow broader market trends.