Is Bitcoin dead? Bitcoin and other cryptocurrencies surged higher on Monday, breaking above an established range to begin a new month of trading. Analysts are optimistic about the next few weeks, citing October as a traditionally favorable month for cryptos.
Bitcoin’s price has gained 4% in the last 24 hours to $28,300, surging from below $27,000 on Saturday to its highest level in over a month. Since mid-August, the largest digital asset has generally been trapped in a trading range of around $26,000 amid historically low volatility and trade volumes, with the recent surge signaling a return to Bitcoin’s distinctive excitement.
According to Antoni Trenchev, founder and managing partner of crypto lender Nexo, October — or ‘Uptober’ as it’s called — is already living up to its reputation as Bitcoin’s favorite month, with Bitcoin reaching a six-week high. Let’s not get too thrilled until Bitcoin breaks out of the $26,000-$30,000 region where it’s been stuck for the previous six months.
There were few immediate reasons to explain Bitcoin’s rise. However, leverage piling up in the Bitcoin perpetual futures market — the most liquid market in crypto — most certainly aided in priming the pump. According to Coinglass statistics, $270 million in short bets relying on a price drop have been wiped out since last week. Bitcoin prices began to shoot higher from the low $26,000s, adding additional impetus to the existing advance.
However, Bitcoin was already on a roll entering into a new month of trading after exceeding the S&P 500 and Dow Jones Industrial Average in September, rising for the first time in seven years. History shows that the outperformance will continue in October, and you now have an answer to the question, “Is Bitcoin dead?”
Trenchev further stated that the final quarter of 2023 is important since the previous two times Bitcoin climbed in September (in 2015 and 2016), it posted increases in each of the next three months. Bitcoin has had positive returns in eight of the last ten October and in each of the last four, so the devout are hoping that the granddad of cryptocurrencies might gain some traction this month following a rare good September.
Beyond Bitcoin, Ether, the second-largest cryptocurrency, rose 3% to $1,730. Smaller tokens or altcoins climbed as well, with Cardano rising 5% and Polygon rising 4%. Memecoins witnessed similar gains, with Dogecoin and Shiba Inu both gaining 2%.