Why Bitcoin Is Starting Q4 on Stronger Footing Than Traditional Markets

Strong ETF inflows and Strategy's latest Bitcoin purchase supported prices in September and gave crypto stronger momentum entering the fourth quarter.

Bitcoin outperformed stocks and gold in September as it entered the fourth quarter on a high note, according to Santiment. The world’s largest crypto asset gained around 8% during the month. In comparison, the S&P 500 saw little movement, while gold fell by more than 6%.

Several altcoins also recovered as investor interest returned to the market.

What Changed in September?

Fresh capital inflows supported Bitcoin’s rally. US-listed spot BTC exchange-traded funds (ETFs) attracted billions of dollars in September, including several large inflow days toward the end of the month. Meanwhile, Strategy added another 1,665 BTC to its holdings, which was indicative of continued corporate accumulation. Strive also expanded its corporate Bitcoin holdings by purchasing 1,107 for $94.5 million.

Improving economic conditions also helped the market. US inflation data for August came in below expectations, easing pressure on Treasury yields as well as reducing concerns about another Federal Reserve rate hike. While stock markets showed a limited response, cryptocurrencies recorded stronger gains following months of weak sentiment and heavy short positions.