Bitcoin (BTC) started the new week with a decline, falling to $ 57,000 levels. Having fallen from $ 64,000 to $ 57,000 levels in the last week, further declines are expected in the face of negative historical data for September.
However, one analyst thinks that Bitcoin could break its downward trend this year.
At this point, speaking to Coindesk, Innokenty Isers, founder of cryptocurrency exchange Paybis, stated that the decline in BTC is in line with the downward trend observed in September, while FED interest rate cuts could disrupt this trend.
“September is a historically negative month for Bitcoin, as data shows it has an average value depletion rate of 6.56%.
If the Fed cuts interest rates in September, it could help Bitcoin rewrite its negative history, as interest rate cuts typically lead to an excess influx of US dollars into the economy, further strengthening Bitcoin’s outlook as a store of value.
“Also, overall, factors such as macroeconomic indices, increasing adoption of spot Bitcoin ETFs, and hash rate could make September a relatively better month for BTC this quarter.”
Bitcoin has been struggling to break out of its downtrend since its ATH in March. At this point, analysts predict that BTC will break out of its downtrend and rise thanks to factors such as the Fed rate cut in September and the US presidential election in November.
*This is not investment advice.