- Bitcoin and Ethereum kickstart October with notable gains, igniting “Uptober” optimism.
- Swift price surges liquidate $70M in crypto shorts in just hours.
- Awaiting the U.S. SEC’s nod, Bitcoin ETFs remain in focus, with January 2024 eyed for a pivotal announcement.
The cryptocurrency market has started October on a high note. Leading this wave are Bitcoin and Ethereum, both showcasing significant price surges. This momentum led to the swift liquidation of over $70 million in crypto shorts on the first day of the month.
The Rise of “Uptober”
Bitcoin, the dominant player in the cryptocurrency market, experienced a rapid ascent from $27,100 to an impressive $28,053 within a brief 15-minute span. It later stabilized, settling just below the $28,000 benchmark. Ethereum was just a little behind. Its native currency, Ether, saw a sharp rise of 4.7%, reaching $1,755, before settling at $1,727.
Many believe this surge aligns with the advent of “Uptober“, a term in the crypto lexicon that denotes October’s typical bullish trend for digital currencies. Data from CoinGlass supports this belief, highlighting that since 2013, October has only twice recorded negative monthly returns.
The crypto community is also keenly awaiting the potential nod for a Bitcoin spot exchange-traded fund by the U.S. Securities and Exchange Commission. However, most analysts are setting their sights on January 2024 for such a pivotal announcement.
Challenges for Short Sellers
The sudden price surge brought cheer to those holding spot and long positions. However, short sellers found themselves grappling with losses. The rapid price escalation resulted in $70 million worth of short positions being liquidated in just two hours. CoinGlass data reveals that BTC shorts nearing $36 million and ETH shorts around $23 million bore the brunt of this abrupt price shift.
The crypto market is also animated with the upcoming launch of the Ethereum futures exchange-traded fund (ETF). At press time, Bitcoin was trading at $28,251, showcasing a 4.08% increase in the last 24 hours, according to data from CoinMarketCap. Following its surge, Ethereum’s price is now lingering around $28,251.
BTC vs ETH 1-day price chart (Source: CoinMarketCap)
The market’s palpable anticipation of the inaugural Ethereum futures ETF product this month adds another layer to the narrative. Recent news indicates that Valkyrie is poised to be at the forefront of this future ETF initiative. The SEC has reportedly given the green light to other Ethereum futures ETFs from industry stalwarts like VanEck and Bitwise, with a launch date set for October 2.
Despite the optimism surrounding Ethereum ETFs, Bitcoin spot ETFs remain in regulatory limbo. The SEC, citing concerns over market manipulation and investor safeguarding has deferred its decision on these ETFs multiple times. Yet, the crypto community clings to hope, eyeing a potential approval by early 2024.
Solana (SOL) and THORChain (RUNE) have also registered noteworthy gains on the broader altcoin horizon. With the rekindled bullish momentum, “Uptober” seems to be the trending term among crypto enthusiasts.
The Road Ahead
Two pivotal events slated for October are unveiling the U.S. unemployment rate on the 6th, and the CPI reports on the 1st. These indicators offer a glimpse into the economy’s vitality and inflation trajectory, influencing the Federal Reserve’s stance on interest rates.
A consensus among financial pundits suggests that the Fed might revert to its interest rate hikes soon, potentially in its upcoming November or December congregations. This speculation stems from the Fed’s relentless endeavours to rein in inflation, which has consistently surpassed its 2% objective.
In wrapping up, while the crypto market might experience some turbulence from the Fed’s manoeuvres, the broader economic canvas will be instrumental in charting its course. As October progresses, the crypto world remains watchful and eager to discern its next trajectory.
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