October’s Crypto Market: A Bullish or Bearish Outlook?

Optimism surrounding cryptocurrencies in October has waned following a market correction. According to Santiment, mentions of Uptober have significantly decreased since the start of the month. 

? Mentions of “Uptober” have declined significantly, painting a picture that traders have become much more bearish on the idea of this month being an automatic money printer for crypto. The lack of optimism opens the door for (at least) a short-term bounce. ? https://t.co/iACWMGPvSs

— Santiment (@santimentfeed) October 3, 2024

Bullish posts have been replaced by bearish ones with ironic Selltober and Octobear. However, analysts believe that the lack of optimism opens the door for at least a short-term rebound. 

Since the beginning of October, the total cryptocurrency market capitalization has dropped by approximately $210 billion, an 8% decline, according to CoinGecko. Bitcoin has lost 4.7%, falling from $64,000 to $61,000. 

Historically, October has been one of the best months for Bitcoin. In nine of the past 11 years, the price has shown positive dynamics, with an average return of 20.74% since 2013.

However, the traditionally negative September turned out to be “green,” raising concerns about a potential shift in the upward trend for October. 

In comments to ForkLog, Allbridge founder Andrey Veliky noted that this year there is some uncertainty due to increased regulatory pressure on stablecoins and a complex geopolitical situation. According to him, investors are acting cautiously, fearing further legislative changes in the European Union and the United States.

“In the near future, a key event will be the Federal Reserve’s decision on interest rates, as well as the results of the American elections, which will have a significant long-term impact on the market,” Veliky emphasized. 

Trader Artem Zvezdin pointed out that two key factors preventing the market from moving are the uncertainty before the U.S. elections and the war in Israel. 

In the event of Donald Trump’s victory, market participants expect significant easing in the cryptocurrency sector and a further positive reaction, the speaker explained. On the other hand, if Kamala Harris wins, serious changes are unlikely, and digital assets are expected to remain stagnant. 

“The war in Israel poses geopolitical risks, and as a result, market participants are reluctant to buy risky assets, including cryptocurrency. When the conflict in the Middle East begins to stabilize, it will certainly be a huge plus for the crypto market,” Zvezdin believes. 

The trader suggested that Bitcoin could reach a new all-time high by the end of the year, with exponential growth to approximately $120,000 by mid-2025.  

Veliky noted that the leading cryptocurrency continues to dominate the market, but in the past three months, it has not surpassed the $70,000 mark. 

Among altcoins, he highlighted BNB and TRX, which are attracting attention due to interest in meme coins and platforms for their launch. The TON network is also setting new records for total locked value and user activity, concluded the Allbridge founder. 

CoinMarketCap has predicted an early end to the cryptocurrency bull market.

Meanwhile, Lekker Capital CEO Quinn Thompson urged buying Bitcoin on the dip, calling the current correction “unfounded.”