Bitcoin Sprints Towards Best Quarter Since Q4 2024 Amid Cooling Momentum

Bitcoin's price has been hovering around $83,600 after briefly pushing past $86,000. This recent surge has set it up for the strongest quarter since Q4 2024, with a more-than-40% advance from July to September.

The catalyst behind this rally is largely due to steady cash inflows into bitcoin exchange-traded funds (ETFs). However, bond yields have recently increased, tempering the mood and potentially signaling a pullback. Researchers at CryptoQuant warn that traders are taking profits and more coins are heading to exchanges, a pattern often preceding selling.

Looking ahead, October has historically been bitcoin's strongest month, with an average gain of 19.1% according to Dow Jones Market Data. If this trend continues, it could help offset some of the recent cooling. Nevertheless, momentum is impressive but the backdrop is getting trickier.