Bitcoin and Ethereum prices surged nearly 4% within a mere 15 minutes.
The US government averts a shutdown, bolstering hopes for the continuation of Bitcoin Spot ETF negotiations.

The cryptocurrency market witnessed an unexpected surge in the prices of Bitcoin and Ethereum on Oct. 1. Both prominent digital currencies experienced almost a 4% increase in their value in a brief window of just 15 minutes. This swift upswing led to a massive liquidation, erasing more than $70 million in cryptocurrency short positions.

No government shutdown in the US pushes #Bitcoin‘s price above $28,000, as the #BTC Spot ETF decision can be negotiated. Biden signs a Stopgap Measure while BTC and #ETH wipe out $70 million in shorts in a 15-minute window.

Uptober is here! $40,000, here we come! pic.twitter.com/Qjz4BvCdkR

— Collin Brown (@CollinBrownXRP) October 2, 2023

Diving into specifics, Bitcoin’s price escalated from $27,100 to $28,053 before slightly receding to just below the $28,000 mark. Parallelly, Ethereum’s Ether experienced a price hike, peaking at $1,755 before stabilizing at $1,727. Such rapid and significant movements often lead to intense speculation within the crypto community.

While some attribute this to the onset of “Uptober,” a term used within crypto circles indicating October’s historical trend of being a bullish month, others insinuate that a few might be privy to information that the majority aren’t.

Furthermore, there’s significant relief in the political sphere as the US government successfully evaded a potential shutdown. This development not only ensures stability within the US’s economic landscape but also holds significant implications for the cryptocurrency market. With the government active and functioning, negotiations and deliberations regarding the Bitcoin Spot ETF will continue uninterrupted.

This steady progression towards the potential endorsement of a Bitcoin Spot ETF by the United States Securities and Exchange Commission (SEC) can provide an additional boost to Bitcoin’s price, further nurturing the already buoyant market sentiment.

Historical data from CoinGlass supports the “Uptober” theory. Since 2013, October has rarely disappointed cryptocurrency enthusiasts, presenting negative returns only twice. Moreover, the combined positive news of the US government’s stability and the continuation of the Bitcoin Spot ETF discussions is only set to amplify the current market optimism. For holders with spot and long positions, these combined factors make for a favorable environment. However, short sellers faced challenges as short positions worth $70 million were liquidated in the wake of these events.

Such market dynamics underscore the symbiotic relationship between political stability and financial markets, emphasizing the profound influence they can exert on each other.

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Filed under: Bitcoin - @ October 2, 2023 4:17 am