Key Points
- Bitcoin (BTC) experienced a 3.2% increase at the end of September, contrary to its typical trend of falling during this month.
- Bitcoin ETFs saw record inflows and mining operations expanded, indicating strong investor interest and growth in the mining industry.
Bitcoin (BTC) broke its usual trend by closing the week ending September 29 with a 3.2% rise, reaching $65,618. This is notable as September is typically a weak month for BTC.
Traditionally, September witnesses an average 3.7% drop in Bitcoin’s value. However, this year’s gains suggest a shift in this trend.
Monetary Policies Impacting BTC
Analysts believe that the unusual rise in BTC’s value is linked to global central banks easing monetary policy, with 21 rate cuts in September. Such actions often boost BTC prices, as demonstrated by BTC’s surge following the Fed’s recent rate cut.
However, geopolitical tensions between Israel and Iran triggered a sell-off in crypto markets on Oct. 1, causing Bitcoin to drop 3.9% and Ethereum (ETH) to fall over 6%. This conflict also had an impact on crypto-mining stocks, with shares in Marathon Digital and CleanSpark declining by about 9% and 6%, respectively.
Bitcoin ETFs and Mining Stocks
Spot Bitcoin ETFs saw over $1 billion in inflows last week, marking the first such weekly inflows since July. This suggests strong investor interest, with $494.4 million arriving on September 27 alone. Since January, these ETFs have accumulated $18.8 billion in total inflows.
Mining stocks also had a notable week, rallying 15.1% week-on-week as Bitcoin prices rose, leading to higher hash prices — a key metric that indicates miner profitability.
Growth in the Bitcoin Mining Industry
The Bitcoin mining industry is poised for growth according to analysts. Hut 8 began its GPU-as-a-service business, signing a five-year deal with an AI cloud developer. This deal is expected to generate $20 million in annual revenue.
Cipher completed its purchase of a new 300 MW mining site in West Texas for $67.5 million, expanding its operations.
Bitdeer tested its second-generation SEAL02 mining chip, hitting key efficiency targets and planning mass production in 2024.