There is a meme on Twitter about the Fed reducing its rate increases at the beginning of next year. Historical data suggests that Bitcoin could be bullish in October. Bitcoin traded above $20,000 on Wednesday morning after its initial surge in “Uptober,” as speculators call it.
The market capitalization of the world’s largest cryptocurrency peaked at $20.346. It then settled at $20.281 at the time this article was written.
It was the highest level recorded since late September, when a spike briefly boosted crypto markets.
In previous years, Bitcoin-watchers have noticed that the coin performs well during October. The coin’s highest ever value, which was $66,000, was achieved in November thanks to last year’s rally.
“I submit to the Uptober narrative,” tweeted Galois Capital. This crypto hedge fund is known for calling the collapse of Terra’s algorithmic stablecoin, UST. It feels pleasant.
Other large accounts also jumped on the meme. There have been some notable events that could have helped Bitcoin push beyond Twitter chatter.
The conventional wisdom suggests that November and October are favourable months to invest in crypto, particularly Bitcoin. However, the term “Uptober”, which was coined during last year’s record breaking rally, is relatively new.
Coinglass data shows that October historically has been a bullish month in terms of monthly returns. Bitcoin was last in the red in 2014 and 2018.
These same data suggest that February is a bullish month for Bitcoin.
This belief contrasts with the October effect, a superstition about traditional equity markets that suggests that the month will be full of losses.
Although there have been several financial crises in October, it is not known if this month is unlucky.
October is a special month for Bitcoin. Satoshi Nakomoto, the pseudonymous creator of Bitcoin, published the white paper about the project on October 31, 2008. The first trade took place in January 2008, however.