Crypto Markets Face Challenges: ‘Uptober’ Rally Uncertain, Bitcoin Falls to 12-Day Lows

Crypto Markets Face Challenges: ‘Uptober’ Rally Uncertain, Bitcoin Falls to 12-Day Lows

October forecasts are mixed as cryptocurrencies grapple with uncertainty. Despite the traditional reputation of ‘Uptober’, when Bitcoin sees significant gains in October, markets have begun to turn and turn red. On Monday, Bitcoin fell to a 12-day low, a sharp reversal from expectations of gains.

October has traditionally been a good month for Bitcoin. Since 2013, it has posted gains in 10 out of 12 months, with the only exceptions being 2018 and 2022. The bull years of 2017 and 2021 saw gains of over 40%, raising hopes for further gains and a potential jump to $165,000 next month.

However, some analysts are warning. Kyle Chassé has raised the possibility of a Fed rate cut, which he says will “invigorate” liquidity and support cryptocurrency growth. Sykodelic predicts that the market may first go down before heading to new highs. “Once we break certain thresholds, we will have an expansionary final phase that could lead to euphoria,” he says.

On the other hand, some experts are more skeptical. Augustine Fan of SignalPlus warns that low volatility and profit-taking could dampen growth. Similarly, Jeff Mei of BTSE expects the trend to weaken unless the macroeconomic situation changes or the Fed increases stimulus.

Cryptocurrency markets did indeed experience a sharp decline on Monday. Total capitalization fell by $80 billion, while Bitcoin lost value and fell to its lowest level in two weeks.

While some forecasts suggest that October could be a disappointment, others hope for a recovery and more significant growth. The future of cryptocurrencies is still uncertain, so it remains crucial to monitor macroeconomic signals and market behavior.

*This is not an investment recommendation.

The Coingarage Team