The total crypto market capitalization has seen a drop of 4.5%, amounting to $200 billion leaving the sector since it peaked at $4.4 trillion on October 7. The expected rally during ‘Uptober’ has not materialized, with both Bitcoin and Ethereum declining by 4% and 12% respectively from their all-time highs.

Yet, analysts suggest this downturn might be temporary. According to Analyst Ash Crypto, the current market movement is designed to liquidate bullish positions, particularly among retail investors. He predicts the market will rebound, possibly around October 15 to 20, leading to a substantial rally by the end of the month.

Uptober Still On Track

“They want you to be bearish and believe that ‘Pumptober’ is canceled” - Ash Crypto.
(Translation: They want you to be negative and think that Pumptober is off the table)

He foresees that despite the bearish market sentiment, October could still witness significant rebounds, particularly towards the end of the month, resulting in a potential price surge for Bitcoin ranging between $150,000 and $180,000, while Ethereum could climb to around $12,000.

Meanwhile, another analyst, Sykodelic, expressed confusion over the ongoing bearish sentiment regarding Bitcoin’s price ceiling.

Bull Theory reports that the current market movements are not coincidental, as gold’s valuation also indicates a risky period ahead with investors opting for safer assets amidst economic uncertainty.

In historical trends, October has been a month of gains for Bitcoin in 10 out of the last 12 years, and additionally, predictions suggest that upcoming cuts in Federal Reserve interest rates could further stimulate a bullish phase in the crypto markets.