Bitcoin gained roughly 7% in September while the S&P 500 barely moved and gold dropped more than 6%, according to Santiment Intelligence data. ETF inflows, Strategy's latest purchase and cooling inflation are fueling the advance, and several analysts expect the strength to carry into Q4.
Bitcoin enters the fourth quarter with a clear edge over stocks and gold. BTC gained roughly 7% in September, while the S&P 500 barely moved and gold dropped more than 6%, according to Santiment Intelligence data published October 1. Ether, XRP, Solana, Zcash and NEAR joined the rebound as capital rotated into crypto.
ETF Inflows and Corporate Buying Drive the Rebound
Fresh money is keeping the rally active. US spot Bitcoin ETFs pulled in billions during September, including several large late-month inflow days. Santiment added that Strategy added another 1,665 BTC to its treasury, helping sustain the upside. Cooling inflation also helped: August's reading came in softer than expected, briefly lowering Treasury yields and reducing bets on another Fed hike.
Stocks rose on the same news, but crypto responded more sharply after months of weak sentiment and heavy short positioning. Santiment cautioned that higher Treasury yields and crowded leverage could still trigger sharp pullbacks, even as continued ETF demand and corporate accumulation support the broader trend.
Analysts Expect the Rally to Extend Further
Bitcoin climbed above $84,000 alongside other risk assets after soft US PCE inflation data signaled another Fed rate hike is unlikely next month. BTC has rallied almost 45% in Q3, its biggest quarterly gain since 2024.
10x Research says October could mark the start of the next leg higher, pointing to a bottom confirmed when US federal debt crossed $40 trillion in August, pushing BTC above $80,000. Bitcoin later fell back to $76,000 on hawkish Fed fears before surging to $86,000 in under a week once Fed Chair Warsh signaled policy would stay accommodative.
BIT, formerly Matrixport, points to a break above the 21-week moving average as confirmation of the bottom and projects a rally toward $185,000-$215,000. The firm noted holders are in profit, with BTC trading above both the True Market Mean price and the average buying price of spot Bitcoin ETFs. CNBC Pro contributor Frank Cappelleri said Bitcoin could rally 400% from here if it repeats its 2022 pattern.
Source: CoinGape
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