The crypto market “washed out” and then recovered strongly – Uptober is not dead, but is getting hotter!
Cryptocurrency market maintains bullish momentum despite strong volatility
After the "storm" of liquidation, the market is still standing firm
Despite just experiencing the largest liquidation in crypto history , analysts say the outlook for October remains positive.
“After the weekend crash, I thought the market would be red hot all October,” admitted analyst Scott Melker. “But it’s a miracle that prices have held where they are.”
He stressed that this is not a recession like 2017 or 2021, but just a structural adjustment , forcing investors to “re-evaluate risk and see clearly what is broken in the market”.
Total capitalization has now recovered to $4 trillion , although Bitcoin temporarily fell below $111,000 .
Short-term volatility but positive medium-term outlook
According to expert Tim Sun (HashKey Group) , the market is still psychologically weak after the "leverage dump", so "short-term fluctuations are inevitable".
However, he said that being overly pessimistic is unnecessary, because in the medium and long term, the trend is still supported by factors such as monetary easing policy, easing geopolitical tensions and liquidity recovery .
“Uptober” still has hope of breaking out
October, often referred to as “Uptober” , has been a bullish period for Bitcoin in 10 of the past 12 years .
While down 0.6% now, history shows most of the gains come after October 15 — with 2023 up 29% and 2020 up 18% in the second half of the month.
Melker believes that gold's historic peak could lead to capital flows back to Bitcoin:
“Investors are not panicking, they are just reallocating. If gold is going up so much, imagine what happens when capital starts flowing back into Bitcoin.”
Additionally, the upcoming meeting between Trump and Xi Jinping and expectations of further interest rate cuts by the Federal Reserve are also bolstering the belief that October could still be a bullish month for the crypto market.