Bitcoin (BTC) and Ethereum (ETH) shocked many analysts and likewise created many liquidations when the two top digital assets by market cap suddenly jumped up a few percentage points on October 1.
However, for those who have been in the cryptocurrency sector for more than a few years, it’s actually par for the course, as Bitcoin and crypto in general have historically almost always had positive gains in the month of October.
Let’s first discuss that history before looking at this year’s move.
Past Uptobers
Last year, in October 2022, Bitcoin made a 5% gain in the month, despite it having had negative returns for each of the 6 months before it. Of course, just a month later in November, the now infamous FTX Exchange collapse occurred, gutting the entire sector of value.
The year before, in October 2021, Bitcoin made an enormous 39% gain despite having a 7% loss in September that year. In 2020, it was similar as well, with a 27% gain that followed a September with a 7% loss.
When you look at the image below, you’ll see that Bitcoin has only twice in its lifetime ever had an October where it didn’t go up.
This October, though not over yet, brought a quick jump for Bitcoin of 3% in just 15 minutes according to data from TradingView. Similarly, Ethereum jumped up just under 5%. The moves by the two top assets by market cap also brought with them nearly $60 million in liquidations for those shorting the assets.
What’s Driving Bitcoin’s Price?
There are quite a few potential reasons why Bitcoin’s price is going up this Uptober just like most.
Perhaps the most obvious reason is the potential approval of a Bitcoin Spot ETF. If and when the first Bitcoin Spot ETFs are approved, it will likely cause upward movement in its price. Though this is unlikely to happen until the new year, it’s possible that the approval will bring somewhere close to $600 billion in new demand to the market. It’s certainly possible that many are looking ahead and trying to get ahead of future gains.
Likewise, the potential for an Ethereum ETF brings similar possibilities, helping to explain why it also saw a good jump in price.
Another potential reason for Bitcoin’s price movement is the issues which traditional finance markets are currently facing. Apart from soaring interest rates for mortgages, it’s perhaps becoming more clear to people that their fiat currencies aren’t doing well in terms of purchasing power. Bitcoin being considered a hedge against such things by most pundits may be a driving factor driving those who hadn’t really thought it a good investment to take a chance, especially with the stock markets seeing red while Bitcoin is green.
Closing Thoughts
It remains to be seen how Bitcoin will close out this current Uptober, but it’s on the right track currently. It seems unlikely that it will finish with a negative loss, but it will be interesting to see just how high it can go during one of its favorite times to be bullish. Though Bitcoin ETFs aren’t likely to be approved this month, the very idea that it is going to happen seems to be creating some buzz around the king of crypto.
