As October draws to a close, Bitcoin (BTC) has disappointed many who expected it to be a strong month for the cryptocurrency, also known as the “Uptober” due to its historically strong performance. Instead, Bitcoin ended the month lower, leaving it about 13% off its all-time high.
Past trends suggest a potential Bitcoin rebound
Joel Krueger, market strategist at LMAX Group, said: noticed Although October was disappointing compared to past trends, we believe it is important to understand the status of price fluctuations. “Prices have remained solid across the board, particularly since September, when they really bounced back from the usual slump,” he said.
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Notably, on the 6th of this month, the leading cryptocurrency on the market reached an all-time high of just over $126,000. Moreover, the current economic downturn has not yet canceled out the year-to-date gains, with Bitcoin still trending up 55% during this period.
However, according to a recent analysis by Fortune, Bitcoin’s performance in October this year was the fourth worst since 2013 and the worst in the past seven years. Bitcoin performance lagged behind global performance S&P500an increase of approximately 2.3% during the same period.
Despite this underperformance, Krueger remains optimistic about Bitcoin’s potential for recovery in the coming months. “Historically, the fourth quarter has been one of the best periods for crypto performance,” he said, expressing hope that both Bitcoin and Bitcoin will be pushed towards all-time highs. Ethereum (ETH) This year is coming to an end.
October challenge
This was a difficult month, not only in terms of prices, but also due to significant market events. Adam McCarthy, senior research analyst at digital market data provider Kaiko, said: cryptocurrency Entering October, gold and stocks hit near all-time highs. However, investors did not return to Bitcoin as expected as uncertainty crept into the market.
Additionally, October saw the largest liquidation event in crypto history, triggered by President Donald Trump’s announcement of 100% tariffs on imports from China, along with the threat of export controls on critical software.
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mccarthy commented Regarding the impact of the liquidation, he said: “The washout on the 10th reminded people that this asset class is very narrow.” He cited an example of a 10% drop in just 15 to 20 minutes, highlighting that even leading cryptocurrencies like Bitcoin and Ethereum can experience sharp drawdowns.
Amid these developments, several people have expressed concerns about high stock market valuations. JPMorgan Chase & Co. CEO Jamie Dimon recently warned that the risk of a major economic correction is increasing. us stock market within the next six months to two years.
Jake Ostrovskis, head of trading at Wintermute’s over-the-counter desk, said market participants remain hesitant as they face the impact of the largest liquidation event in history. He added that this sense of caution continues amid continued speculation about vulnerabilities that may still exist within the financial system.
At the time of writing, BTC is trading at $109,688, having lost its nearest support floor at $110,000.
Featured image from DALL-E, chart from TradingView.com