After falling in August, QCP Capital experts think that Bitcoin will fall again in September. However, they do say that a possible change in Federal Reserve policy could help.
The company that trades digital assets pointed out Bitcoin’s historical trend, which suggests that the price of the cryptocurrency may drop another 5% this month, following the downward trend that began in August.
In the past, Bitcoin has lost funds on the market in six of the last seven Septembers, with average declines of up to 4.5% during those months. QCP Capital, on the other hand, thinks that this drop could eventually help a possible comeback.
Bitcoin Support At $54,000 Expected
The company thinks Bitcoin will find support around $54,000. This is a level from which it has recovered before, before going on to rise to $70,000 in July. BTC is now worth $58,000, which is an increase of almost 2% during an insignificant market rebound.
Even though September is usually an awful month for Bitcoin, Philipp Zentner, CEO of Li.Fi, told that a rise could be caused by an expected change in U.S. Federal Reserve monetary policy.
Fed Chair Jerome Powell hinted at a possible change in interest rates in his Jackson Hole speech last month. Most investors are now expecting cuts of 25 to 50 basis points later this month.
Zentner also mentioned a number of positive signs, such as the fact that BTC is becoming more popular, crypto exchange balances are going down, and there are more BTC miners on the open market.
BTC now controls 58% of the cryptocurrency market. Investors prefer BTC to other cryptocurrencies like Ethereum, which have not done as well.
Over the last 30 days, billions of dollars worth of Bitcoin have been taken out of platforms like Binance and Coinbase, according to data from CoinGlass.
The amount of Bitcoin and Ethereum on platforms hit a four-year low in June. Even though these trends make investors think the market will go up, sentiment is still not clear ahead of the predicted rate cuts.
