Bitcoin Sets the Stage for Strong Quarter-End Performance

Bitcoin (BTC) $103,266 is preparing for a strong start to the final quarter of the year. According to Matrixport’s latest report, the period from October to December has historically seen an upward trend in the markets, and this year may not be an exception. Following a prolonged consolidation phase, a significant price increase for Bitcoin is anticipated. Positive forecasts made at the end of September 2023 proved accurate, leading to the expected rally by year-end. This year too, many anticipate that Bitcoin’s year-end surge could surprise many traders.

Price Performance of Bitcoin in Historical Context

Bitcoin entered a consolidation phase after reaching a new record level in March 2024. However, it has provided a return of 49% since the beginning of the year, closely aligning with historical predictions forecasting a 47% return. Observations indicate that Bitcoin could display a significant price increase starting in October, with an average rise of 40% seen from October to March and a 27% increase from April to September. October stands out as the strongest month, yielding an average gain of 20% in eight of the last ten years.

Impact of Fed’s Rate Cut on the Market

Recently, the U.S. Federal Reserve (Fed) cut interest rates by 50 basis points, causing notable market movements. Fed Chair Jerome Powell stated that this reduction signifies confidence in returning inflation to the 2% target. Additionally, this action was perceived as a precaution against potential weaknesses in the labor market.

Powell’s emphasis on the strength of the U.S. economy and his dovish remarks alleviated investor concerns, maintaining market momentum ahead of the upcoming U.S. presidential elections. Currently, 2025 is considered a pivotal period for Bitcoin and other cryptocurrencies, with expectations that digital currencies are nearing a threshold for mass adoption similar to past technologies. Matrixport indicated plans to explore this topic in detail in the coming weeks, while a slight recovery in Ethereum $2,476‘s (ETH) gas fees suggests that the cryptocurrency market might overcome its summer stagnation in October.