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Bitcoin has started month of October on a bad note, deviating what many investors expected up to the moon. Bitcoin, which had been rising significantly before, began to face difficulties as September ended, leading to the first 24 hours of October.
The first 24 hours of October are full of exits from the crypto industry. Bitcoin, in particular, fell below $61,000according to Coinmarketcap, as the conflict began rise in the Middle East. Going through this decline, it raised questions about the outlook for Bitcoin throughout this month.
Current Bitcoin price action
The frenzy leading up to October was centered on the expectation that Bitcoin would extend its bullish momentum and break through key resistance levels. According to price data, Bitcoin ended the month of September 7.11% higher than where it started, and reached a high of more than $66,000 at one point.
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However, at the time of writing, Bitcoin is down about 7% from its September high. Furthermore, Coinmarketcap data shows that Bitcoin is down 3.6% in the last 24 hours. The rapid decline has changed the way the market feels, where the once bullish outlook is giving way to fear and uncertainty. The Fear and Greed Index, which measures market sentiment and risk appetite, now reads 39 and means “Fear.” It seems that crypto investors are panicking, and crypto analyst Kaleo even emphasized this on social media platform X.
After spending five minutes scrolling through the timeline you’d think we’d never see the green candle again.
— KALEO (@CryptoKaleo) October 1, 2024
Bitcoin price action is very sensitive to world events. Notably, the recent decline in the price of Bitcoin can be attributed to geopolitical conflicts in the Middle East. Its recent performance in the face of the country’s turmoil casts doubt on its role as a safe haven.
Spot Bitcoin ETFs, which aim to support the spot price of Bitcoin, also ended eight consecutive days of large inflows and outflows on October 1, most likely due to tensions in the Middle East. According to Spot Bitcoin ETF flow data from Farside Investors, institutional investors withdrew $246.2 million yesterday.
Is Uptober a myth?
The sense of optimism seems to have faded quickly among many crypto investors. However, many participants are still holding on to a bullish view, especially considering that the month still has a long way to go before its end.
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History shows, more often than not, that October has always been a good month for Bitcoin. Most importantly, the best performance was in the second half of the month. Considering that the month is in its early days, it makes more sense to wait and see how price action plays out for the rest of the week before making any conclusions on Uptober.
In the face of these arguments, the potential role of Bitcoin as a safe asset is similar to gold can increase among market participants throughout the month and beyond.
The featured image was created with Dall.E, a chart from Tradingview.com