How Will October Fare for the Bitcoin Market? Will We See a New Peak in 2023?

• The crypto market is seeing a green light as the Ethereum futures exchange-traded fund (ETF) launch is closely watched. Bitcoin (BTC) and Ethereum (ETH) are starting October with impressive price gains.
• This sudden rally comes as the market anticipates the first Ethereum futures ETF product this month. Last Friday, the community was stirred by the news that Valkyrie would be the first company to offer a futures ETF.
• According to Santiment’s report, whales who own Bitcoin between 10 and 10,000 BTC achieved their highest ownership in 2023 with 13.03 million BTC.

Bitcoin, which had a good start to October, managed to exceed the critical level of $28K: What news will investors focus on in October?

Bitcoin Rises Rapidly as October Begins

The crypto market is gaining momentum with caution as it anticipates the launch of Ethereum futures exchange-traded funds (ETFs). Bitcoin (BTC) and Ethereum (ETH) are starting October with impressive price increases.

This sudden rally comes as the market anticipates the launch of the first Ethereum futures ETF product this month. Last Friday, the community buzzed with news that Valkyrie would be the first company to offer a futures ETF. Additionally, it was reported that the SEC had approved other Ethereum futures ETFs from VanEck, Bitwise, ProShares, Kelly ETFs, and Vol Shares. These 9 products will be released today.

In addition to Ethereum ETFs, Bitcoin spot ETFs are also in focus, but there is a possibility that the U.S. Securities and Exchange Commission (SEC) may continue to delay its decision on approval.

The SEC has postponed its decision on Bitcoin spot ETFs several times and expressed concerns about market manipulation and investor protection. However, there is increasing pressure on the SEC to approve a Bitcoin spot ETF. Crypto enthusiasts are optimistic about a potential approval in early 2024.

On a day when the two major coins celebrate the new month, other alternative coins are also starting to move. In the last 24 hours, Solana (SOL) has risen by 12.05%, THORChain (RUNE) by 12.35%, and Polygon (MATIC) by 5.64%. Other top altcoins like Cardano (ADA) and Avalanche (AVAX) have recorded gains between 1% and 3%.

The sudden return of bullish momentum has been beneficial for spot and long positions but painful for short sellers. According to Coinglass, a $70 million short position resulted in the liquidation of approximately $36 million worth of BTC shorts and $23 million worth of ETH shorts within 2 hours.

On-chain analysis firm Santiment predicts that the Bitcoin bull run could continue in October. According to Santiment’s report, whales holding between 10 and 10,000 BTC have acquired their highest holdings with 13.03 million BTC in 2023.

These whales have also continued to buy Tether (USDT) over the past six weeks. The accumulation of Bitcoin and USDT by whales and sharks indicates their confidence in the long-term Bitcoin perspective.

What to Expect in October?

Two significant macro events for this month are the U.S. unemployment rate on October 6th and the CPI reports on October 12th. These data provide insights into the health of the economy and the level of inflation that the Federal Reserve (Fed) considers when making decisions about interest rates.

The Fed paused rate hikes in September, but many financial experts and analysts believe this pause is temporary. They think the Federal Reserve is inclined to continue raising interest rates, possibly as early as the upcoming meetings in November or December.

The reason behind this expectation is the Fed’s ongoing efforts to control and reduce inflation, which has been running above its desired 2% target. Of course, the Fed has its limits, and further rate hikes will create more pressure on the global financial system.

In this scenario, the crypto market may experience some impact from the decisions of the federal institution. However, the impact is likely to be limited. Analysts and observers believe that the broader economic outlook is critical in shaping the direction of the crypto market.