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Bitcoin experienced significant market activity in September 2024. The month began with notable price volatility, starting at approximately $58,000, dipping below $52,000, and then recovering to close at nearly $65,700. This period was marked by economic and policy changes, including a U.S. Federal Reserve interest rate cut, which boosted market liquidity and increased institutional investment in Bitcoin.
Despite fluctuations, the overall sentiment remained positive, supported by strategic interest rate cuts and robust institutional engagement. The Bitcoin hashrate also saw significant fluctuations, reflecting dynamic mining activity throughout the month.
"With the highly anticipated bull run on the horizon, we’re thrilled to announce the 100% fulfillment of our funding round! We’re proud of this achievement and can’t wait to reveal all the exciting details soon—big things are coming!"
- Nick van Houtrijve Co-Founder | COO
This month, we completed a seed funding round, raising €1 million from angel investors at a valuation of €7.5 million.
Additionally, this funding positions us to advance our projects and expand our services in the coming months.
In September, Bitcoin's price showed marked volatility with an upward trend. It opened around $58,000, dropped to just below $52,000 early in the month, and then sharply recovered. The price fluctuated significantly, reaching a high of around $65,000. By the end of the month, Bitcoin had stabilised at nearly $65,700, closing higher than it had started.
In September 2024, several economic and policy developments impacted Bitcoin's market dynamics. On September 18, the U.S. Federal Reserve cut interest rates by 50 basis points to tackle slowing inflation and rising unemployment. This typically boosts market liquidity and enhances the appeal of risk-on assets like Bitcoin. This period also saw a significant rise in institutional investment, especially in Bitcoin ETFs, which recorded $365.57 million in net daily inflows on September 26, the highest since late July, driving demand and prices higher.
Additionally, central banks globally, including the European Central Bank and the People’s Bank of China, reduced borrowing costs, creating a favourable environment for Bitcoin as investors sought alternative assets. Despite these positive drivers, the market experienced volatility due to concerns that the Fed's rate cuts might signal broader economic issues, such as an impending recession.
Historical volatility patterns in September worries about global financial stability, and a 4.2% reduction in Bitcoin's mining difficulty further contributed to price fluctuations, reflecting the complex interplay of factors influencing Bitcoin's valuation throughout the month.
The Crypto Fear and Greed Index shifted from "Fear" to "Greed," reflecting growing investor optimism. The index rose from last month's score of 29 to 61 today. Last week, it was at a neutral 50, and yesterday's value stood at 63, indicating strong and sustained bullish sentiment.
Despite the fluctuations, the overall market sentiment towards Bitcoin remained resilient in September 2024, with robust institutional engagement and strategic interest rate cuts laying a solid foundation for its continued relevance and growth.
In September 2024, the Bitcoin hashrate opened at 676.4148 EH/s and quickly rose to 784.5112 EH/s before dropping to 630.2806 EH/s. It then surged to a monthly high of 845.6509 EH/s, followed by a sharp decline to 493.5305 EH/s.
The hashrate recovered to 793.2389 EH/s, dropped again to around 534.3308 EH/s, and peaked at 739.1886 EH/s. Towards the end of the month, it stabilised at approximately 694.0438 EH/s and closed at 617 EH/s. This month, significant fluctuations in mining activity were demonstrated.
In September 2024, daily Bitcoin mining revenue started strong, initially reaching $30 million. Over the first week, earnings slightly dipped, stabilising between $24 million and $26 million. The revenue experienced moderate fluctuations throughout the month, ranging from $26 million to $28 million. A notable increase occurred mid-month, peaking near $30 million before settling into the previous range. The month concluded with revenues consistently above $26 million.
In September, the average prices in the Bitcoin mining industry (according to ASIC Miner Value) were:
Bitmain Antminer S19j Pro+ (122TH/s)= $1,386.00
Bitmain Antminer S19 XP Hyd (255TH/s)= $6,166.00
MicroBT Whatsminer M50S (126Th/s) = $2,048.00
At Pantheon, we are proud that due to our scale and trusted partnerships, we can offer miners such as the Bitmain Antminer S21 Hydro (335T - 5360W) for $11,864 * including capex, + 1st and last two months electricity, in our fully managed data centres. This capex contribution enables us to offer electricity at a competitive rate of 4¢.
*Minimum order quantities apply.
The contents of this analysis are for informational purposes only and do not constitute investment advice. The study is based on the author's opinions and assumptions and may not reflect the actual state of the market or the future outcomes of any investment. The author is not a financial advisor and assumes no responsibility for the information's accuracy, completeness, or suitability.
Bitcoin investments are subject to high risks and volatility. The prices can fluctuate significantly due to factors such as supply and demand, regulatory actions, technological innovations, security breaches, hacking attacks, market sentiment, and global events.
Investors should be aware of these risks and conduct their diligence before making investment decisions.
