The price of bitcoin has settled at $63,259 today, the best result for the cryptocurrency in September in recent years.
Writes UNN with reference to Investing.
On Monday, bitcoin fell to $63,259, losing 2.64% over the past day. Analysts attribute this to technical signs of an overbought market. This drop was part of a broader correction that began after the cryptocurrency reached a resistance line in a downward trend channel. From this point, bitcoin has fallen by more than 5%, and further declines could bring it down to support levels around $63,000 or lower.
Despite the current decline, bitcoin is having its best September in recent years, up at least 7% since the beginning of the month. Historically, September has been a problematic month for cryptocurrencies, as bitcoin has suffered losses in eight of them over the past 11 years. However, the current gains create favorable conditions for October, when the average increase was 23%.
Bitcoin-focused funds raised more than $1 billion, and Ethereum-based products broke a five-week slump by adding $87 million.Bitcoin's decline also coincided with similar trends in the US stock markets, reflecting a decline in risk sentiment ahead of several important economic reports, including US employment data and a speech by Federal Reserve Chairman Jerome Powell.
Futures contracts related to the federal funds rate currently suggest that interest rates are likely to decline slightly by 25 basis points, which is traditionally a positive factor for bitcoin.
Bitcoin's drop also came after reports of Israeli air strikes on central Beirut, the first such attack in almost a year amid the ongoing conflict with Lebanon's Hezbollah. A similar reaction of bitcoin to regional unrest was observed five months ago, when the cryptocurrency lost more than 10% after an Israeli strike on Iran.
Although bitcoin is often positioned as a hedge against volatility, it often sees sell-offs during geopolitical crises as traders exit risky assets in favor of safer alternatives.
Recall
Last week, the price of bitcoin rose to a one-month high amid expectations of an interest rate cut by the US Federal Reserve, which encouraged traders.