Bitcoin began the month of October on a negative note, deviating from what many investors expected preceding the month. Bitcoin, which had previously shown a notable price increase, began facing setbacks in late September until the first 24 hours of October.
The first 24 hours of October were filled with outflows from the crypto industry. Bitcoin in particular fell below $61,000According to Coinmarketcap, when tensions began growing up in the Middle East. Going by this decline, questions have arisen regarding the outlook for Bitcoin for the rest of the month.
Current Bitcoin Price Action
The buzz leading up to October centered on expectations that Bitcoin would extend its bullish momentum and break key resistance levels. According to price data, Bitcoin ended the month of September 7.11% above where it started, reaching a peak above $66,000 at one point.
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However, at the time of writing, Bitcoin is down nearly 7% from its September peak. Furthermore, data from Coinmarketcap shows that Bitcoin is down 3.6% in the last 24 hours. The rapid recession has altered market sentiment, with the once-optimistic outlook giving way to fear and uncertainty. The Fear and Greed Index, which measures market emotions and risk appetite, now reads 39 and signals “Fear.” It appears that crypto investors are now in a panic, with crypto analyst Kaleo even drawing attention to this on social media platform X.
After spending five minutes scrolling through the timeline, you’d think we’d never see a green candle again
-KALEO (@CryptoKaleo) October 1, 2024
Bitcoin price action is highly sensitive to world events. Notably, the recent decline in Bitcoin price can be attributed to geopolitical conflicts in the Middle East. Its recent performance in the face of geopolitical turbulence casts doubt on its role as a safe haven asset.
Spot Bitcoin ETFs, which aim to support the spot price of Bitcoin, also ended eight consecutive days of inflows with massive outflows on October 1, likely in reaction to tensions in the Middle East. According to Spot Bitcoin ETF flow data from Farside Investors, institutional investors withdrew $246.2 million yesterday.
Is Uptober a myth?
The optimistic outlook appears to have quickly faded among many crypto investors. However, many participants still maintain an optimistic outlook, especially considering that the month still has a long way to go before its conclusion.
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History shows, for the most part, that October has always been a positive month for Bitcoin. Most importantly, the positive performance occurred mainly in the second half of the month. Considering that the month is just beginning, it is more logical to wait and examine how the price action plays out during the rest of the week before drawing any conclusions about the Uptober.
Given these tensions, Bitcoin’s potential role as a safe haven asset similar to gold could increase among market participants the rest of the month and beyond.
Featured image created with Dall.E, chart from Tradingview.com
