Bitcoin (BTC) and Ethereum (ETH), the two largest crypto projects by market cap, have hit new all-time highs this month. According to CoinGecko’s Bitcoin data, BTC climbed to a new peak of $124,128 on Aug. 14. ETH, on the other hand, hit a new high of $4,946.05 on Aug. 24. Despite the incredible bullish move, both BTC and ETH have fallen by more than 10% from their respective all-time highs. Let’s discuss if things will improve in September.
Will Bitcoin and Ethereum Hit Another All-Time High In September?
September has historically been a bearish month for Bitcoin (BTC). Given that BTC is the market leader, and other assets follow its trajectory, September has been a bearish month for the general crypto market. If BTC continues to follow its historical pattern, we may see the asset face further correction. Ethereum’s (ETH) price will also suffer under such circumstances.
However, there is a high chance of an interest rate cut in September. A rate cut could help BTC’s price. Federal Reserve Chair Jerome Powell stated after his Jackson Hole meeting that current conditions “may warrant adjusting our policy stance.” This may mean that the Fed is eyeing an interest rate cut next month. The Federal Open Market Committee (FOMC) meeting is scheduled for Sept. 17. A rate cut could provide substantial cushioning to any price correction Bitcoin (BTC) and Ethereum (ETH) may face.
Also Read: Trillions of Dollars Could Flow Into Bitcoin, Ethereum, Cardano, SHIB
Despite the high chances of a rate cut, the path ahead may not be as clear as it needs to be for Bitcoin (BTC) and Ethereum (ETH) to hit new all-time highs. According to Lisa Shalett, chief investment officer at Morgan Stanley, “Although we are aware of the extreme political pressures on the Fed to ease, and we acknowledge cracks emerging in some labor market data, from our perch … the case for cuts looks modest.“
Macroeconomic conditions could present challenges to the crypto market. BTC and ETH could face price consolidations in such a scenario.
