Crypto Market Recovery Ahead as Jim Cramer Says September Seasonally Weak?

Key Insights:

• The crypto market recovery odds rise a Jim Cramer called September a seasonally weak month, triggering an inverse-Cramer strategy.
• Fed rate cut in September could trigger a recovery in Bitcoin, altcoins, and crypto stocks.
• BTC, ETH, XRP, BNB, and SOL saw upside momentum after Jim Cramer’s post.

The popular inverse-Jim Cramer strategy could take effect in the stock and crypto markets as Jim Cramer said markets are usually weak in September.

The crypto community expects a recovery in Bitcoin, altcoins, and crypto stocks. At the time of writing, crypto prices rebounded in the last few hours. Will the crypto market witness Up-tember before Up-tober?

Will Inverse Jim Cramer Work in September for Crypto Market?

CNBC Mad Money host Jim Cramer took to X on September 2 and posted about the historically weak market performance in September.

He added that inflation bounced back and the labor market remained tight in the United States. However, he is confident that the Trump Administration will defy the seasonality impact this September.

Notably, US President Donald Trump and his administration urged the Federal Reserve to cut interest rates by 100 bps. Trump has attacked the Federal Open Market Committee (FOMC), primarily Chair Jerome Powell, to the independent government body denied his request due to tariffs.

Besides, Trump fired Federal Reserve Governor Lisa Cook, which raised concerns about the Fed’s independence. This caused global markets to fall, fading the bullish sentiment around Bitcoin price rally to at least $135K.

The crypto community has reacted to Jim Cramer’s post and expects a recovery in Bitcoin, altcoins, and crypto stocks in the coming days. Crypto Rover said the seasonality curse is broken.

As The Coin Republic reported, August and September have historically been the worst months for the crypto market. Bitcoin price performance since 2020 averaged 0.23% in August and -4.68% in September, as per Bitwise Asset Management.

The Fed’s September Rate Decision Is Key

As headwinds such as macroeconomic impacts, Bitcoin’s historical peak, and crypto seasonality jitters erased bullish sentiments, a Fed rate cut in September could bring crypto market recovery.

Notably, traders turned cautious after the US PPI inflation jumped 0.9% in July, raising core PPI inflation to 3.7%. Since then, Bitcoin price has plummeted almost 14% to $107K.

The market sentiment remained mixed after the Fed’s preferred measure of inflation, the Core PCE Index, moved up to 2.9%, the highest since February.

At the time of writing, the CME FedWatch Tool showed a 92% probability of a Fed rate cut by 25 bps on September 17. Also, traders now expect odds of two rate cuts this year.

The Fed will rely on upcoming macroeconomic data to announce a 25 bps rate cut in September. Moreover, declining inflation data and a weakening jobs report will trigger larger interest rate cuts this year.

Crypto Market: Bitcoin, Ethereum, and Other Altcoins Pump

BTC price jumped after Jim Cramer’s post, extending the 24-hour upside to more than 1.30%, with the price currently trading at $110,415. The 24-hour low and high were $107,480 and $110,678, respectively.

Furthermore, the trading volume has increased by 11% in the last 24 hours, indicating a slight increase in interest among traders as they await more cues.

ETH price jumped but fell again despite crypto market recovery expectations. The 24-hour low and high were $4,221 and $4,444, respectively.

Top altcoins XRP, BNB, and Solana climbed above $2.80, $850, and $204, respectively, amid massive institutional interest in altcoins.