Bullish October Still Likely After Crypto Liquidation Event
Despite a record-setting crypto liquidation last week, analysts believe markets remain positioned for a bullish October. The total crypto market cap rapidly rebounded to $4 trillion after the sell-off, and although Bitcoin has since dipped, overall market sentiment is holding up. Unlike previous crashes driven by regulatory shocks or scandals, the recent event was mostly structural, prompting risk reassessment rather than panic. Short-term volatility is expected, but medium-to-long-term outlooks remain positive, anchored by anticipated policy easing and liquidity improvements. Historically, October—nicknamed “Uptober”—has seen Bitcoin post gains in most years, especially in the month’s second half. Recent gold rallies and fading trade war fears, such as upcoming US-China talks, further support a positive outlook. Additional drivers include expectations of Federal Reserve rate cuts and ongoing market rotation between asset classes. Overall, while near-term caution persists, excessive pessimism is seen as unwarranted, and seasonal trends continue to favor a recovery later in the month.
