The leading cryptocurrency Bitcoin began to recover after the sharp declines it experienced, rising above $ 57,000.
Despite the rally to $57,000, BTC is still down 3% in September and more than 20% from its March peak of $73,000.
NYDIG research head Greg Cipolaro said in his assessment that although this recovery is promising, the short-term bullish catalysts for Bitcoin are limited.
Speaking to Coindesk, Greg Cipolaro pointed out that Bitcoin has historically performed poorly in August and September, emphasizing that October and the last quarter could be stronger for the BTC price.
Cipolaro said that Bitcoin will need non-crypto bullish catalysts to rally through October and the fourth quarter, and that investors should focus on broader macroeconomic factors such as US data, Fed rate cuts and the upcoming US presidential election.
“Unfortunately, near-term potential catalysts for Bitcoin are currently few and far between.
Until the fourth quarter, Bitcoin bulls can look to factors other than just crypto for positive catalysts. These will include macro news like employment, inflation, and Fed policies. There’s also the presidential election in November.
“We can't predict which candidate will win the election, but November could be a pivotal moment for the industry.”
*This is not investment advice.