Bloomberg: Global rate cuts drive Bitcoin to one of its biggest September gains ever

Bitcoin is on track for one of its biggest September gains ever, driven by a wave of global rate cuts, including the U.S.'s aggressive shift to loose monetary policy. Data compiled by Bloomberg show that bitcoin prices have risen more than 10% so far this month, compared with an average September decline of 5.9% over the past decade. The small-cap token index has climbed more than 20%, suggesting that loose financial conditions are activating riskier sectors in the cryptocurrency market. To support economic growth, the Federal Reserve, the European Central Bank and others lowered borrowing costs in September. Investors are anticipating more stimulus measures, so they are rushing to buy assets from stocks to gold in response to looser monetary conditions. "Bitcoin remains the most correlated with monetary policy as far as the Fed is concerned," said Sean McNulty, head of trading at liquidity provider Arbelos Markets. "Easy policies from other central banks are certainly helping." Caroline Mauron, co-founder of Orbit Markets, said the $65,000 level could "hold strong" for a few hours as a large number of options contracts expire on Friday. (Bloomberg)