As we welcome the unique term “Uptober”, the crypto market takes a leap forward, influenced by a variety of stimulating factors. One significant mover that has contributed to the rise is the relieved atmosphere created by the US government’s decisive action to avert a shutdown, upscaling the total crypto market cap by $3.7 billion to a staggering $1.1 trillion on October 2nd. For crypto enthusiasts, this is not a wave to enjoy passively; it’s a signal to ride!
The onset of October bears historical significance in the crypto realm, commonly known as a period that shoots up the returns in the market. Yet, rising from $27,991, BTC marvels us by a 5% bump over $28,500. While the utopian view of the term “Uptober” sounds appealing, it has failed to achieve gains only three times in the past. Historical data may show us that October is a strong month for Bitcoin gains, but it’s important to consider that nothing is set in stone in the volatile world of crypto.
On a more varied note, an alluring $92 million was liquidated across the market due to a rally that started on October 1. The short-seller losing streak hasn’t deterred 50.5% of the futures market from maintaining short positions. The imbalance might sound alarming to some, but in the crypto cosmos, a skewed ratio is merely a potential opportunity for a lucrative short squeeze.
On the macro level, the crypto market was given a surprise boost with the US government’s successful dodge of a shutdown, which effectively wiped out a whopping $70 million in shorts. The SEC’s continued stance against the crypto market and its refusal to approve a Bitcoin ETF hasn’t dampened the institutional interest in the space. Recent launches of Ethereum ETFs by VanEck and Bitwise emphasize this ongoing interest, which ultimately buoyed the market sentiment. The Bitcoin Fear and Greed Index recorded an 11-point hike in the last month, highlighting this improved sentiment.
However, we must acknowledge that the crypto market tale doesn’t end here. The shadow of fear still looms with risky events that could heavily impact Bitcoin and altcoins. Crypto markets’ inherent volatility is likely to continue, with the positive start to October providing only a temporary relief. Any new actions by enforcement or untimely economic recessions will dictate the further direction of the market. So, as we step deeper into “Uptober”, it will be intriguing to see if the month lives up to its billing of yielding high returns.
Source: Cointelegraph
