Bitcoin recorded a 4.8% price gain in July, followed by a 25.2% jump in August, and rose another 10.9% to around $86,140 throughout September. This three-month streak of green returns in the third quarter has revived a pattern rarely seen in the market.
Throughout its trading history, a rally spanning every month of the third quarter has only happened once before, in 2012. At that time, price action posted a 41.0% surge in July, rose 6.4% in August, and closed out September with a 24.4% gain.
A Brief Pause Before an Extended Trend
Looking back at the 2012 cycle, the series of third-quarter gains did not immediately send prices skyrocketing without pause. After three consecutive green months, market momentum briefly reversed with a 9.7% correction in October.
That temporary pullback served as the starting point for an even larger bull cycle. The October correction was immediately followed by a steady 165-day bull run. This unbroken uptrend continued until Bitcoin surpassed $230 in April 2013, representing a total gain of more than 2,000%.
Two Different Market Structures
While the monthly percentage patterns look similar, today’s trading landscape cannot be equated directly with conditions of the past. Analysts note that modern Bitcoin market structure is far more mature, underpinned by institutional liquidity inflows on a multi-trillion-dollar scale.
This stands in stark contrast to the industry landscape in 2012. When that rare pattern first emerged, Bitcoin’s market capitalization was still microscopic. At the time, the digital asset traded around $10 per coin and was not yet supported by global corporate capital.
Given this vast difference in market depth, this year’s third-quarter rally presents a real test. For asset holders, October’s price action will test whether the 2012 rally will repeat itself, or if institutional liquidity will steer this trend onto a new path.
Sourced from CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
