“Uptober” began with a sudden price surge in Bitcoin and Ethereum, triggering massive short position liquidations.

October has kicked off with a bang for cryptocurrency enthusiasts. In a surprising move on Oct. 1, Bitcoin’s price shot up by 3%, jumping from $27,100 to $28,053 within a 15-minute span. Shortly after, it stabilized slightly below the $28,000 benchmark. But it wasn’t just Bitcoin experiencing this surge; Ethereum’s Ether too witnessed an impressive 4.7% spike, pushing its value to a brief high of $1,755. However, it later found its balance at $1,727.

This rapid price movement left many in the crypto community wondering about its cause. Some attributed this to the start of “Uptober” – a term in crypto circles suggesting that October often brings positive price action for cryptocurrencies like Bitcoin and Ethereum. In fact, CoinGlass data reveals that since 2013, only two Octobers have registered negative returns for the month.

Such a spike is significant for a couple of reasons. For one, those holding spot and long positions in these cryptocurrencies found reason to rejoice. It marked the first substantial price activity they’d seen in over a month. On the flip side, short sellers didn’t share this sentiment. The sharp rise in cryptocurrency prices resulted in the liquidation of $70 million worth of short positions in just a matter of two hours. To break it down further, short positions worth nearly $36 million for Bitcoin and $23 million for Ethereum faced the heat of this unexpected rally.

The Speculations Behind the Rally

The sudden and substantial price movement led to various speculations. While many championed the idea of October’s historically bullish trend for cryptocurrencies, others whispered that “someone might be in the know” about some forthcoming favorable developments.

One potential positive trigger the crypto market eagerly anticipates is the United States Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin exchange-traded fund (ETF). While most market experts predict this announcement might come around in January 2024, any signs or insider hints of an earlier date could stimulate market activity.

While the exact cause remains a matter of debate, one thing’s certain: the crypto market has entered October on an optimistic note. Whether this is the heralding of “Uptober” or a precursor to some bigger news on the horizon remains to be seen. For now, the crypto community watches, speculates, and hopefully, celebrates.

The post “Uptober” Arrives: Bitcoin & Ethereum Surge appeared first on Crypto Academy.

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Filed under: Bitcoin - @ October 2, 2023 10:15 pm