Bitcoin Rallied After Rate Cut, BlackRock’s Bringing Bitcoin ETF Options to the Market

September is usually one of the worst-performing months for Bitcoin. The digital currency only ended in the green in a handful of Septembers in the last 15 years.

But not this time!

Bitcoin rallied 8% to close the month at $64,000, finally breaking away from the mid to high-50,000 range.

It feels like we were stuck there for an eternity.

Most of this rally was due to the Fed's 50 bps rate cut, the first cut in almost four years.

But there’s more! We also had some exciting news from BlackRock: options will soon be available on the IBIT Bitcoin ETF.

And then there's Michael Saylor, who continues to show why having Bitcoin on your balance sheet is a no-brainer. Since adopting BTC with MicroStrategy, he has casually outperformed the entire S&P 500.

OK, let’s dive in!

The Fed cut rates by 50 points, and Bitcoin loved it 📈

The last time the Fed cut rates, Sam Bankman-Fried was still a free man, there was no conflict in Ukraine or the Middle East, and crypto market sentiment was overwhelmingly bullish. 

That was almost four years ago.

Not too long after that, inflation soared (as a result of money printing) and rates were hiked in an attempt to curb incredibly high inflation rates. 

Fast-forward to today: Jerome Powell announced a 50 bps rate cut and didn’t rule out further cuts in upcoming meetings as inflation is at “reasonable” levels again in the U.S. 

As soon as Powell announced the rate cut, markets soared—including Bitcoin—and investors smiled again. 

Bitcoin surged so much that it became the best-performing asset since the rate cut. 

This September was the best in Bitcoin’s history, at least when looking at monthly performance year by year.

At one point, the world’s largest cryptocurrency crossed the $66,000 mark, finishing the month at $64,000.

The (somewhat) expected “Uptober” rally took a hit when an escalation of the conflict in the Middle East affected global markets, taking Bitcoin a leg lower to $60,000. 

But what’s becoming increasingly clear is that rate cuts are considered Bitcoin-positive by investors, so with more rate cuts we could see the price of BTC move higher in the coming months. 

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Options on BlackRock’s ETF (IBIT) are now a thing 🤝

BlackRock’s spot Bitcoin ETF (IBIT) is the largest among all ETF issuers and had the most successful ETF launch in history.

It’s undoubtedly one of the best marketing tools for educating institutional investors about Bitcoin because it operates in a familiar environment with trusted partners where they can allocate capital.

BlackRock doesn’t seem to be slowing down! 

The SEC has given them the green light, approving their plan to offer options on top of their Bitcoin ETF.

This is a significant development, as it will allow investors to trade volatility and enable institutions to use advanced strategies to optimize their positions.

The only remaining step is to receive final approval from the OCC (Office of the Comptroller of the Currency) and the CFTC (Commodity Futures Trading Commission).

Once these approvals are granted, BlackRock will offer Bitcoin ETF options, and we can eagerly anticipate the demand for this product.

MicroStrategy outperformed the entire S&P 500 🚀

In the eyes of many financial “experts,” Michael Saylor took a significant risk over four years ago when he began buying Bitcoin and using it as a strategic treasury reserve asset.

However, we all know he didn’t just make the right decision—look at how he turned the company around and how MicroStrategy’s stock has soared ever since!

This month, Saylor shared the graphic above, comparing the performance of MSTR stock to the S&P 500 since August 10, 2020.

Looking at the price development, MSTR has performed over 10 times better than the S&P 500 and has outperformed all 500 companies in the index individually!

All Saylor did was buy Bitcoin by issuing debt and holding it on the company’s balance sheet. The strategy seems simple, but it’s highly effective, as charts like the one above demonstrate.

Perhaps this is why Saylor "felt cute" again and purchased another 7,420 BTC, bringing the total Bitcoin on the company’s balance sheet to 252,220 BTC.

Given how bullish Saylor is on Bitcoin, I wouldn’t be surprised if we see another purchase announcement on his X account in the coming weeks.

Why 95% of teams fail despite the perfect draft ⚾️

If you’ve been tuning in to my Proof of Words Podcast, you’ll know that our guests aren’t just Bitcoiners. I have had quite the range of interesting individuals on to discuss a broad spectrum of topics that loosely fall under Bitcoin, liberty, and the pursuit of happiness. 

This time, we did something completely different. We discussed fantasy baseball for the upcoming season, took a look at some of the best teams in history, and had a casual conversation between two passionate baseball fans.

If that’s your jam, tune in here to watch the full episode!

 It was such a blast, and I hope you get some nice picks for your own fantasy baseball season! 

Your fellow stacker in sats, 

Patrick Lowry