Key Points
- The crypto market enters September with expectations of increased volatility and a potential bullish recovery, led by Bitcoin’s mild recovery.
- Several key events in September, including potential interest rate cuts, unemployment rate releases, and crypto hearings, could significantly impact the crypto market.
The cryptocurrency market kicked off September with high hopes of increased volatility, anticipating a possible bullish rally in the fourth quarter. Leading the altcoin sector, Bitcoin (BTC) saw a slight recovery on Monday after concluding the previous week and month on a bearish note. As per the most recent crypto price predictions, Bitcoin price was around $58.4k during the early New York session on Monday, a rise of approximately 1 percent in the last 24 hours.
Despite the rebound above $58k, the fear of further crypto correction in September persists. Bitcoin’s fear and greed index lingered around 26 percent, indicating high fear of additional crypto capitulation.
September: A Month of Significant Crypto Events
September promises to be an eventful month for the entire crypto market, considering the positive correlation between Bitcoin, altcoins, and major stock indexes. The potential economic shift in the United States, suggested by Fed Chair Jerome Powell’s possible interest rate cut this month, is at the top of the list.
On September 6, the US Bureau of Labor Statistics will announce the unemployment rate, predicted to be around 4.2 percent by Wall Street analysts. The US Bureau of Labor Statistics will release US Consumer Price Index (CPI) data on September 11, followed by the US Department of Labor releasing the number of individuals who filed for unemployment insurance for the first time during the previous week. These figures will significantly influence the Fed Commission’s decision on the next phase of the interest rates on September 18th.
The upcoming US general elections also bring significant events for the crypto space. The September 10th debate between Donald Trump and Kamala Harris, as well as the September 10th and 23rd crypto hearings in the United States, will provide more clarity on the regulatory landscape.
In the altcoin sector, the BNB and EOS teams will execute network hard forks on September 26th and 25th, respectively. After serving four months of prison time in the United States, former Binance CEO Changpeng Zhao (CZ) is set to be released on September 29.
Market Outlook
Despite significant losses in the crypto industry, particularly in the altcoin market, some analysts predict a major bullish surge akin to previous bull cycles. If the US Fed implements the first interest rate cuts for the first time since the COVID-19 pandemic, liquidity in the crypto industry is expected to gradually increase in the following months.
The crypto industry is predicted to reach new heights, driven by institutional investors seeking to expand their global operations through the Web3 space. Major global economies, led by China and Russia, have been preparing to enter the crypto sphere through regulated channels.
