Crypto Market Anticipates an ‘Uptober’ Rally
The crypto world is abuzz with speculations about a potential rally in October, widely referred to as ‘Uptober’. These talks have intensified despite the fluctuating market dynamics observed on Monday. If history serves as an indicator, the optimism certainly has roots to be seeded. October has showcased favorable trends for Bitcoin previously with a consistent positive trajectory.
Historical Trends Supporting the Anticipation
In the past, Bitcoin, an undisputed market leader in the realm of cryptocurrencies, has remarkably performed well in October. Since 2013, the cryptocurrency has shown growth on ten occasions in the month of October, out of a total of twelve. Just to give reference to the past, Bitcoin registered no losses in October since the year 2018, with an unfortunate slide of 3.8%. Comparing with other bullish years, 2017 and 2021, Bitcoin managed to rise by 48% and 40% respectively during the month. If a similar matrix follows the trend this year, Bitcoin could see a monumental hike to approximately $165,000 from its current figures.
Speculations About Federal Reserve Rate Cut
On Monday, Kyle Chass, one of the prominent Bitcoiners, stated that the probability of another Federal Reserve rate cut next month has seen a surge, with current predictions hitting the 92% mark as per CME futures. Chass also shared his optimism about the easing cycle being priced in and an influx of liquidity in the near future. This would provide an environment conducive for Bitcoin and other cryptocurrencies to thrive.
Predictions for the Crypto Market
One of the market analysts, Sykodelic, voiced that market figures will drop further before gaining momentum in October. However, the analyst emphasized that once the $112,500 mark is achieved, the markets will witness the usual bearish and topping calls for rate cuts. Comparing this with another prediction from Arthur Hayes, Co-founder of BitMEX, the crypto world is said to hit the ‘up only’ mode as soon as the US Treasury General Account reaches and surpasses $850 billion.
Caution Amid Anticipation
Despite the exciting predictions, some market analysts urge caution. Augustine Fan, who heads the insights at crypto trading software service provider SignalPlus shared that volatile market factors could restrict Bitcoin rallies. The factors mentioned include low implied volatility, weakening DAT inflow momentum, and presence of profit takers. A similar cautionary note from Jeff Mei, Chief Operating Officer at BTSE exchange was also shared.
Current Market Retreat
The crypto markets have demonstrated a retreat on Monday with a total market capitalization reduced by $80 billion within a few hours. Bitcoin dropped to a twelve-day low of $114,270. Ether, another popular cryptocurrency, also experienced a drop of more than 4% bringing its value below $4,300. This served as the lowest figure for Ether in the last two weeks.
Conclusion
So while speculations and trends hint towards a bullish ‘Uptober’ it’s important to recall that the crypto market often defies predictions. As a result, investors are advised to keep a cautious eye on the market trends and make informed decisions.
