The cryptocurrency market is rising today as volumes hit new highs for October. The crypto market is up today as Bitcoin, Solana and numerous altcoins rallied to restore the bullish momentum commonly associated with “Uptober.”. Crypto and equities continued positive growth, bringing the total crypto market cap up to $1.1 trillion on Oct. 17th.
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Let’s examine three of the major factors influencing today’s crypto market rally.
Uptober sees the highest daily volume
October has historically been celebrated as “Uptober” due to the positive returns in the crypto market. Bitcoin and crypto market volume rallied from $1 billion to over $2.7 billion on October 15.
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There is optimism surrounding the increase in volume as the seasonality of Bitcoin’s returns in October has remained positive, only failing to achieve gains 3 times in the month. The volume on Oct. 15 recorded the largest daily trading volume for the entire month. Combined with such a strong history, this makes October statistically one of the strongest months for Bitcoin price gains.
Related: Bitcoin Range Expansion, Will SOL, LDO, ICP, and VET Follow Suit?
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A strong October is much needed after the third quarter of 2023 equated to $700 million in losses due to various hacks. Adding to this total, on Oct. 17, Fantom Foundation’s hot wallet was hacked for $550,000 worth of crypto.
Bitcoin dominance
Bitcoin is regaining dominance in the crypto market before the supply halving in April 2024. For the first time since June 28, Bitcoin is above the 50% market when compared to the entire crypto market cap.
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Typically, when Bitcoin dominance plateaus, there is a rush to altcoins and other cryptocurrencies. The dominance comes on the heels of Bitcoin models showing BTC’s potential to reach $130,000 after the 2024 BTC halving event.
Crypto liquidations rule the day
The crypto market rally started on Oct. 16 and fueled a wave of short position liquidations across the market, totaling over $64 million in 24-hours. Bitcoin short liquidations lead the way with the largest single liquidation of $2.53 million in one transaction on the Binance exchange.
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Despite the short-seller losing streak, 50.9% of the futures market remains short. With the ratio remaining skewed short, a potential opportunity for a short-squeeze could lead to further price upside.
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Related: Why is Bitcoin price stagnant?
Macro factors could benefit the crypto market
Despite the Securities and Exchange Commission (SEC) refusing to approve a Bitcoin ETF and their continued war on the crypto market, large institutions remain interested in the space.
Such interest has led VanEck and Bitwise to both launch Ethereum ETFs on Oct. 2. The Bitwise ETF will launch on the Chicago Mercantile Exchange (CME) and the VankEck Ether ETF will launch on the Chicago Board Options Exchange (CBOE).
While Bitcoin and altcoins still have overhanging risk events that could impact the price, the growing institutional interest is improving sentiment across the market. The Bitcoin Fear & Greed Index highlights the improved sentiment, noting a 6-point increase over the last month.
source: cointelegraph