Bitcoin gained around 8% in September while the S&P 500 barely moved and gold dropped more than 6%, according to Santiment. ETF inflows and fresh corporate buying carried the asset into the fourth quarter, with traders now watching whether it can clear resistance just below $86,000.
Bitcoin enters the fourth quarter stronger than traditional markets after outperforming stocks and gold in September, according to Santiment. The asset gained around 8% during the month, while the S&P 500 saw little movement. Over the same stretch, gold fell by more than 6%. Several altcoins also recovered as investor interest returned to the market.
ETF Inflows and Corporate Buying Drive the Rally
Fresh capital inflows supported the rally. US-listed spot Bitcoin ETFs attracted billions of dollars in September, including several large inflow days toward the end of the month. Meanwhile, Strategy added another 1,665 BTC to its holdings, continuing its pattern of corporate accumulation. Strive also expanded its position, buying 1,107 BTC for $94.5 million.
Improving economic data added further support. US inflation for August came in below expectations, easing pressure on Treasury yields and reducing concern over another Fed rate hike. Stock markets showed a limited response to the data, but cryptocurrencies posted stronger gains after months of weak sentiment and heavy short positions. Santiment said crypto markets enter the fourth quarter with several potential growth drivers. According to Santiment: "crypto currently has catalysts that traditional assets simply haven't matched". The firm cautioned, however, that higher yields and crowded leverage can still trigger sharp pullbacks.
What Traders Are Watching Next
Bitcoin is stuck just below $86,000, and Crypto Patel believes this level could decide where the asset heads next. If BTC breaks above that level and holds, a move toward $100,000 could be back on the table. If it fails, traders will instead watch $82,886, $80,300, and $76,400 for support.
BIT Research has put a bigger number on the current cycle. The firm said the bear market has likely ended and predicted an upside range of $185,000 to $215,000.
Source: CryptoPotato
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