Analysts Believe Crypto Crash Will Not Hinder ‘Uptober’
The crypto markets have rebounded to a valuation of $4 trillion following the most significant liquidation event in the history of cryptocurrencies, with analysts maintaining optimistic predictions for October due to underlying structural factors.
“After the largest liquidation in crypto history, I expected October to be deep in the red,” crypto podcaster Scott Melker said on Wednesday. Translation: Scott Melker expressed surprise at the market’s resilience.
Melker remarked that the markets continue to stabilize, which he describes as a small miracle, stating, “I don’t think we’re entering a bear market.”
Despite a slight decline as Bitcoin (BTC) dropped under $111,000 again, the rapid recovery to a $4 trillion market capitalization suggests a resilience not seen in previous downturns characterized by external shocks like the “ICO mania, China mining ban or FTX.”
Expecting Near-term Volatility
Tim Sun, a senior researcher at HashKey Group, concurred, noting that volatility is expected as sentiment in the cryptocurrency market has not fully recovered from last weekend’s sharp corrections. He stated, “Near-term volatility is to be expected, but excessive pessimism is unwarranted.” Sun assured that from a medium-to-long-term viewpoint, factors like policy adjustments and liquidity improvement should remain significant influences.
October’s Historical Significance
October, often dubbed “Uptober,” has historically favored Bitcoin, which has recorded gains in ten of the last twelve years during this month. Although down slightly by 0.6% at the start of this month, patterns suggest a positive shift could still occur by its end, considering Bitcoin’s propensity for upswing in the latter half of October.
Most upside comes after Oct. 15
“If gold can rally that hard, imagine what happens when capital starts rotating back into Bitcoin,” Melker remarked, hinting at the cyclical nature of capital movements in financial markets.
In an additional positive sign, a White House official confirmed that President Trump will meet with Chinese President Xi Jinping to discuss trade, suggesting a potential easing of tariffs that contributed to recent market instabilities.
“Trade conflict is not a zero-sum game,” Sun remarked, indicating that outcomes will likely be less severe than public anxiety suggests.
Also fueling positive sentiments is anticipation of further Federal Reserve rate cuts and narratives around a debasement trade that aligns with October’s bullish expectations. Uptober continues to be a focal point for optimism in the crypto community.
