Bitcoin Defies Hawkish Fed with Surprising September Rally

The US Dollar Index (DXY) has had its best month since June, gaining nearly 2% in September. This hawkish turn at the Federal Reserve signals further tightening is likely needed to bring inflation back to target.

Despite this, Bitcoin (BTC) has not blinked, gaining a surprising 6.14% this month. Historically, the largest cryptocurrency tends to move inversely with the dollar, but its price has bucked expectations in September, averaging a 2.42% loss for the month.

Experts point to two signals that earlier cycles tied to recoveries: Bitcoin posting its first weekly close above its 50-week moving average since November 2021, and its golden cross on September 8 after 293 days below its 200-day average. Binance Research noted that past crosses under similar deep resets have preceded stronger rallies.