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bitcoin started the month of October on a negative note, deviating from what many investors expected before the month. bitcoin, which had previously seen a notable price surge, began to face setbacks as September ended, before the first 24 hours of October.
The first 24 hours of October were plagued with money outflows from the crypto industry. bitcoin, in particular, fell below $61,000according to Coinmarketcap, when tensions began bitcoin-drops-below-63000-are-geopolitical-issues/” rel=”nofollow”>increase in the Middle East. Considering this drop, it has raised questions about bitcoin's prospects for the rest of the month.
Current bitcoin Price Action
Rumors leading up to October focused on expectations that bitcoin would extend its bullish momentum and surpass key resistance levels. According to price data, bitcoin ended the month of September 7.11% higher than where it started, even topping $66,000 at one point.
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However, at the time of writing, bitcoin has fallen almost 7% from the September peak. Furthermore, data from Coinmarketcap shows that bitcoin is down 3.6% in the last 24 hours. The rapid slowdown has altered market sentiment, with the once bullish 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 would seem that cryptocurrency investors are now panicking, and cryptocurrency analyst Kaleo even drew attention to this on social media platform x.
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After spending five minutes scrolling through the timeline, you'd think we'd never see a green candle again.
– KALEO (@CryptoKaleo) twitter.com/CryptoKaleo/status/1841183163063943452?ref_src=twsrc%5Etfw” rel=”nofollow”>October 1, 2024
bitcoin price action is very sensitive to events in the world. In particular, the recent drop in bitcoin price can be attributed to the geopolitical conflicts in the Middle East. Its recent performance in the face of geopolitical turmoil casts doubt on its role as a safe haven asset.
bitcoin spot ETFs, which are intended to prop up the bitcoin spot price, also ended eight consecutive days of inflows with massive outflows on October 1, most likely in reaction to tensions in the Middle East. According to Farside Investors' Spot bitcoin ETF flow data, institutional investors withdrew $246.2 million yesterday.
Is Uptober a myth?
The optimistic outlook appears to have faded quickly among many cryptocurrency investors. However, many participants are still clinging to the bullish outlook, especially considering that the month still has a long way to go before its conclusion.
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History shows, more often than not, that October has always been a positive month for bitcoin. Most importantly, the positive performance mainly occurred 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 develops over the rest of the week before drawing any conclusions about Uptober.
Given these tensions, bitcoin's potential role as a safe haven asset similar to gold could increase among market participants in the rest of the month and beyond.
Featured image created with Dall.E, chart from Tradingview.com
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