A sudden price boost in Bitcoin and Ethereum coincides with the annual "Uptober."
The cryptocurrency market witnessed an unexpected uptick on October 1st, causing a swift liquidation of more than $70 million in short positions across Bitcoin (BTC) and Ethereum (ETH).
Market participants are trying to make sense of this rapid price action, with some attributing the surge to the onset of "Uptober," a term used in crypto circles to describe October's historically bullish trend for digital assets.
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Data indicates that since 2013, October has yielded negative monthly returns only twice. The sudden price surge led some market observers to suggest that the rise could be a precursor to a more bullish month, possibly fueled by internal information unknown to the broader market.
The unanticipated market activity caused Bitcoin to skyrocket by 3% within just 15 minutes, leaping from $27,100 to $28,053, according to BitDegree data. At the time of writing, Bitcoin retails for $28,022.10.
Ethereum saw a similar pattern, with its native currency, Ether, surging by 4.7% to reach a high of $1,755 before stabilizing around $1,720.
Besides historical data, analysts are also focusing on future events that could influence the cryptocurrency market. One such event is the potential approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). However, the consensus among experts seems to be that such an announcement is more likely to occur in January 2024.
Not everyone experienced a windfall from the abrupt market movements, though. Short sellers found themselves on the losing end as $70 million worth of short positions were liquidated within two hours.
A breakdown from Coinglass shows that the market's swift upward "rekt" nearly $36 million in BTC shorts and about $23 million in ETH shorts.
The recent, sudden upward movement in Bitcoin and Ethereum has left many in the crypto community pondering its implications. While it may be too early to definitively attribute this rise to "Uptober," the event has nonetheless brought attention to cryptocurrency markets' often volatile and unpredictable nature.
