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- Federal Reserve rate cuts, Bitcoin’s strong correlation with the S&P 500, and historical price trends can push the BTC price surging to $70K.
- The expected return of Binance founder Changpeng Zhao is likely to generate positive sentiment, further supporting Bitcoin’s upward trajectory.
Bitcoin price has regained momentum with a splurge above $59,000. Moreover, numerous upcoming developments and ongoing market trends are fueling optimism for a potential Bitcoin price surge to $70,000. These events include upcoming macroeconomic developments like the Federal Reserve rate cuts on September 18.
Reasons Why Bitcoin Price May Hit $70,000 Soon
The S&P 500’s equal-weighted index recently reached an all-time high (ATH) of $176.55 gaining momentum on September 11. With continued liquidity flow into the stock market, Bitcoin price could follow suit. Here, its historically strong correlation with the S&P 500 comes into play.
According to data from IntoTheBlock, Bitcoin’s correlation with the S&P 500 is currently measured at 0.73. This suggests that BTC is closely tracking the stock market’s movements. With the S&P 500 in an uptrend, a bullish Bitcoin price move could be imminent.
A U.S. Federal Reserve rate cut, expected following the Federal Open Market Committee (FOMC) meeting on September 18, could provide a boost to BTC, per the CNF report. According to historical precedent, Bitcoin has benefited from interest rate reductions, as lower rates encourage investment in riskier assets.
If the Fed decides to cut rates, it may increase liquidity in the Bitcoin market. Another important development that could support BTC’s price is the anticipated release of Binance founder Changpeng Zhao (CZ) on September 29. On the other hand, countries like Bhutan have continued to increase their BTC stash to more than 13,000, per the CNF report.
Zhao is a highly influential figure in the crypto community, and netizens expect his return to the public sphere to generate positive sentiment around the overall market. Hence, Bitcoin, the flagship crypto, could benefit the most.
Other Favorable Factors
Historically, Bitcoin has performed well during the fourth quarter of Halving years. Data from Coinglass reveals that in both the 2016 and 2020 halving cycles, Bitcoin experienced positive monthly returns throughout October, November, and December.
Hence, with the final quarter of 2024 approaching, investors are looking to historical trends for guidance. Out of these, many expect a similar rally in the upcoming months. October, in particular, could mark the beginning of a price increase. Eventually, it could push Bitcoin price past $70,000 as liquidity and investor interest rise, reported CNF.
Also, the Bitcoin Halving event, which occurred on April 20, 2024, has now passed the 150-day mark. Generally, BTC prices have experienced significant price rallies approximately 150 to 170 days after each halving event.
This trend was particularly evident in the 2021 bull run when the post-halving rally began 160 days after the event. Given that 151 days have passed since the 2024 Halving, many analysts are expecting the post-halving rally to begin soon.
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