Crypto experts are pondering the possibility of a rally this October, just 10 days away, following a downturn in the markets on Monday.
Traditionally, October has been one of Bitcoin’s (BTC) most favorable months, showing positive gains 10 out of the last 12 years since 2013, earning it the nickname “Uptober,” as reported by CoinGlass.
October has not seen Bitcoin decline since 2018, when it fell by 3.8%. In the bullish years of 2017 and 2021, Bitcoin surged 48% and 40% respectively during this month.
If a similar increase occurs this bull market year, Bitcoin could potentially rise to around $165,000 next month from its current levels.
Indicators Supporting “Uptober”
On Monday, Bitcoin enthusiast Kyle Chassé indicated that the chances of another Federal Reserve rate cut next month have increased, currently standing at 92%, according to CME futures predictions. Chassé commented that the “easing cycle is mostly priced in” and that liquidity is forthcoming, which serves as “the fuel Bitcoin and crypto need.”
Analyst “Sykodelic” forecasted on Monday that markets might dip further before experiencing a surge in October.
“As I’ve suggested for a little while, $112,500 is the target, and when we reach that point, the usual voices calling for rate cuts will likely adopt a bearish stance,” they noted, adding:
“Once we get through this, it’s heading to new highs and the onset of the explosive final phase that will lead the market into euphoria.”
Related: Bitcoin poised to overcome ‘red September’ dip for the third consecutive year
Meanwhile, BitMEX co-founder Arthur Hayes mentioned that crypto will enter an “up only mode” once the US Treasury achieves its goal of replenishing the Treasury General Account after it increased past $850 billion earlier this month. “Once this liquidity drain is finished, we can expect an upward trend,” he said on X this past Saturday.
Mixed Opinions on the Potential Crypto Rally
However, some analysts urged caution regarding excessive optimism.
“We anticipate that any BTC rallies will be relatively subdued due to the extremely low implied volatility and upside skews, weakening DAT inflow momentum, and profit takers still looking to sell to limit upside,” stated Augustine Fan, head of insights at crypto trading software provider SignalPlus, adding:
“Long-term investors will need to exercise patience before new all-time highs are reached.”
Jeff Mei, COO at BTSE exchange, stated, “We believe the Uptober trend is less likely to materialize this year due to macroeconomic uncertainties and the fact that September holds steady without market declines.”
“However, if the Fed signals more aggressive measures to stimulate the economy, this could change.”
Crypto Markets Experienced Declines on Monday
The crypto market started declining on Monday morning, with total capitalization dropping by $80 billion within hours as Bitcoin slipped to a twelve-day low of $114,270.
Ether (ETH) also faced losses, falling over 4% to dip below $4,300, marking its lowest level in two weeks.
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