Bitcoin Price Surges Past $57K, Yet NYDIG Warns of Limited Positive Triggers
September 9, 2024
The leading cryptocurrency is experiencing a notable recovery on Monday following a rough start to September, which saw its price dip below $53,000 last Friday. Bitcoin (BTC) is currently trading slightly above $57,000, marking a 5% increase over the past 24 hours and surpassing the broader market performance indicated by the 4.2% rise in the CoinDesk 20 Index. Meanwhile, Ether (ETH) is struggling in comparison to bitcoin and the overall market, showing a 3% gain at $2,341.
The crypto market’s upturn coincides with a positive trend in U.S. stocks, which also faced challenges the previous week. Both the Nasdaq and S&P 500 saw a 1.15% increase on Monday. Despite today’s significant rebound, bitcoin remains down approximately 3% for September and has declined by over 20% since reaching a record high above $73,000 in March.
Greg Cipolaro, the global head of research at NYDIG, mentioned the current lack of imminent catalysts for bitcoin. In his weekly update, Cipolaro highlighted the historical weakness of bitcoin prices in August and September. However, he pointed out that October and the fourth quarter generally tend to be favorable for price movements.
Looking ahead to the fourth quarter, Cipolaro suggested that bitcoin enthusiasts may need to seek positive influences from sources beyond the crypto realm, such as macroeconomic indicators like employment data, inflation rates, and Federal Reserve policies. Additionally, the upcoming November presidential election could play a crucial role, with uncertainties surrounding the candidates’ stances on cryptocurrency. While Donald Trump has shown support for crypto, less is known about Kamala Harris’s position.
Cipolaro emphasized that the industry might face a pivotal moment in November, depending on the election outcome. Until then, bitcoin’s performance may be influenced by broader market conditions. The fourth quarter is still a few weeks away, and during this interim period, bitcoin’s trajectory could be shaped by external factors rather than internal crypto dynamics.
