Bitcoin enthusiasts renamed the month of October as “Uptober”, due to previous year gains, but a -3.6% drop on 30 September is not a great signal for the month ahead.
BTCUSD – Daily Chart
The price of BTC has slipped to $63,076 after testing levels above the $65,000 level. A breach of $62,528 could open the door to lower levels with the $58,000 price target in play.
In 8 of the past 10 years, the crypto market rallied in October compared to the previous month. The ‘Uptober’ month-on-month (MoM) gains over those years averaged from 7.3% in 2022 at the lowest, to 42.9% in 2021. The years of 2014 and 2018 were the only exceptions, when the crypto sector market cap declined 12.7% and 8.3% respectively.
From 2014 to 2023, October has produced an average of 14.0% monthly growth in total crypto market capitalization. That seems to back up the phenomenon that Uptober is a reliable monthly indicator.
Bitcoin has been rising alongside gold as tensions rise worldwide and investors worry about the US Presidential election and government spending.
According to the latest CoinShares data, crypto asset investment products saw a third consecutive week of inflows into September 30 with $1.2 billion over two weeks. The largest share of the investment inflows went to Bitcoin with $1 billion flowing to BTC funds.
Bitcoin funds also led on monthly performance with $1.1 billion in inflows in September, bringing total assets under management (AuM) to $74.6 billion.
A slip in gold prices on Monday may suggest some exhaustion after a recent rally and Bitcoin’s Uptober results could be affected.
Investment giant BlackRock (NYSE:BLK) recently called Bitcoin a “unique diversifier”. The company now owns a large amount of physical BTC which it needs to back investments in its (NYSE:IBIT) exchange traded fund.
