Bitcoin and other cryptocurrencies soared on Monday as digital assets broke through an established range and entered a new month of trading. October has historically been a good month for cryptos, and analysts are optimistic about the coming weeks.
Over the past 24 hours, the price of Bitcoin has risen 4% to reach $28,300, hitting its highest level in more than a month. The largest digital asset had been trading in a stagnant range around $26,000 since mid-August, with low volatility and trading volumes. However, the recent surge in Bitcoin’s price indicates a return to the excitement typically associated with the cryptocurrency.
Antoni Trenchev, founder and managing partner at crypto lender Nexo, commented on Bitcoin’s performance, stating that October, also known as “Uptober,” is already living up to its reputation as Bitcoin’s favorite month. However, he cautioned that Bitcoin needs to break out of the $26,000 to $30,000 range before celebrating too soon.
The exact catalysts behind Bitcoin’s surge are not immediately clear. However, it is likely that leverage building up in the Bitcoin perpetual futures market contributed to the price increase. Short positions betting on a fall in prices worth $270 million have been wiped out since last week, adding further upside momentum to the rally.
Bitcoin’s strong performance in September, where it outperformed the S&P 500 and Dow Jones Industrial Average, provides a positive indicator for its performance in October. Historical data suggests that Bitcoin has posted gains in eight out of the past 10 Octobers and each of the last four.
In addition to Bitcoin, other cryptocurrencies also experienced gains. Ether, the second-largest crypto, jumped 3% to $1,730. Smaller tokens or altcoins, including Cardano and Polygon, also saw increases in their prices. Memecoins like Dogecoin and Shiba Inu gained 2%.
Overall, the cryptocurrency market has started the new month on a positive note, with Bitcoin leading the way. The optimism surrounding October and the potential for Bitcoin’s continued performance provides hope for crypto investors and enthusiasts alike.
Sources:
1. Barrons – “Bitcoin and Cryptocurrencies Start October Strong With Key Resistance Broken”
2. Barrons – “Bitcoin Prices Broke Through $26,000 Resistance to Hit New Monthly Highs”
