Analysis of the September crypto market and alts season

The recent performance of the crypto market is closely related to US fiscal policy and liquidity. Treasury Secretary Yellen is enhancing market liquidity by increasing the issuance of short-term government bonds, which may boost the crypto market in September.

With the outflow of funds from the reverse repurchase program (RRP), the price of Bitcoin is expected to rise. The Treasury plans to issue $271 billion in government bonds before the end of the year, along with a $30 billion repurchase program, totaling about $300 billion in liquidity injection. If general account funds (TGA) are also utilized, the liquidity injection could reach $1 trillion.

This will create a favorable environment for risk assets including cryptocurrencies. Bitcoin is expected to rebound quickly, with a target price of $100,000. However, alts may have to wait until Bitcoin breaks $70,000 and Ethereum breaks $4,000 before they can strengthen significantly.

In September, the crypto market is expected to break free from the sideways downtrend. In October, ahead of the U.S. elections, liquidity may peak. However, there is uncertainty regarding the election results, so it is recommended to take profits on some speculative positions during this period. After the debt ceiling issue is resolved, ( is expected to re-enter the market in January-February next year ).

In the long run, the target of 100,000 USD for Bitcoin remains valid. In 2025, both China and the United States may synchronize easing, which is expected to bring a brilliant crypto bull market. Investors should pay attention to liquidity changes and adjust their strategies accordingly.