After a summer of sluggish performance and waning market share, Bitcoin may be poised for a short-term resurgence in September.
BTC has trailed Ethereum’s explosive rally in recent months, but experts believe the largest crypto by market cap could reclaim its dominance this month.
In August, Bitcoin’s market share declined by more than 5%, according to data from TradingView’s dominance index.
Yet, in a market flooded with new crypto-linked stocks and heightened volatility, BTC’s reputation as a “safe haven” asset within crypto could attract traders seeking stability and short-term upside.
What will drive Bitcoin’s strength in September?
A whole bunch of factors could tilt momentum back in Bitcoin’s favour in September.
With Ether outperforming and the ETH-BTC ratio nearing local highs, some experts see a reversal that could benefit Bitcoin.
According to Satraj Bambra, chief executive of Rails, for example, “ETH-BTC should cool off”, which would mean relative strength for Bitcoin.
Additionally, the Federal Reserve is scheduled for its next policy meeting on September 16-17 as well. If Chair Jerome Powell signals a dovish stance or hints at rate cuts, liquidity conditions could improve – historically a bullish backdrop for BTC.
Meanwhile, retail appetite for newly listed crypto stocks may wane, potentially redirecting capital back into BTC. VanEck’s Matthew Sigel believes Bitcoin could outperform if investor enthusiasm for crypto equities fades.
Tom Lee’s bullish forecast for BTC
Fundstrat’s head of research, Tom Lee, remains one of Bitcoin’s most vocal bulls – and his latest remarks only reinforce that stance.
Speaking recently with CNBC, Lee reiterated his long-standing view that BTC is “structurally set up for a breakout”, especially in environments where liquidity is expanding.
He pointed to ETF inflows and institutional accumulation as key drivers, suggesting that “Bitcoin’s fundamentals are stronger than ever.”
According to him, Bitcoin is poised for a strong final quarter, emphasizing the historical pattern of a BTC rebound in October (Uptober) – where BTC has posted average gains of over 20% since 2013.
Even if September doesn’t prove particularly strong for Bitcoin, Tom Lee is fully convinced that the crypto’s weakness will be short-lived, paving the way for a strong Q4 performance.
How to play Bitcoin in September?
While September has historically been a red month for Bitcoin, there’s growing sentiment that this year could actually prove different, with BTC surprising to the upside.
As macro conditions begin favouring liquidity and ETH cools off, Bitcoin’s role as “OG crypto” may once again attract capital.
ETF inflows, institutional buying, and a possible shift away from speculative crypto equities all point to a window of opportunity.
While risks remain, especially if broader markets sell off, BTC’s resilience and historical October rallies suggest that September could be the setup phase for a bullish end to the year. Investors will be watching closely.
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