Bullish crypto sentiment for the month of October, which has been dubbed “Uptober” on social media, has been waning as markets continue to retreat.
Onchain analytics provider Santiment noted that mentions of “Uptober” have declined significantly since the beginning of the month, in an X post on Oct. 4.
It added that traders have become bearish on the idea that this month will be an “automatic money printer for crypto.” Social media has instead been awash with memes and mentions of “Selltober” and “Octobear.”
Source: NovaSeeds
However, Santiment founder Maksim Balashevich says the recent lack of optimism opens the door for a short-term bounce.
“Uptober excitement wanes as the market dips, which does open the door for a rebound. Whether the bigger downtrend is over remains to be seen.”
Source: Santiment
Veteran crypto trader “Ash Crypto” told his 1.1 million X followers on Oct. 3 that “BTC could drop a little more so that people will stop believing in Uptober” before adding:
“Once bears start getting excited and calling for $40k to $45k, BTC will pump hard.”
In a note to investors on Oct. 4, 10x Research analysts said that since March, many crypto bulls had been caught off guard, expecting the bull run to continue.
Technical indicators suggested the rally was overextended, they said before adding, “It now seems that sell-offs from early adopters (OGs) and large token unlocks have been driving prices down despite strong inflows from stablecoins, Bitcoin Spot ETFs, and increased futures leverage.”
Uptober isn’t usually on time
Crypto markets have declined by around $200 billion, or roughly 8%, since the beginning of October. Total capitalization is down again as of Oct. 3, falling 1.9% back to mid-September levels at $2.2 trillion, according to CoinGecko.
Bitcoin (BTC) briefly dipped below $60,000 on Oct. 3 before recovering slightly to reclaim $61,000 at the time of publication.
But October has historically been bullish for Bitcoin, with positive price action this month in nine out of the past eleven years, which is what has earned it its nickname.
The past five consecutive Octobers have seen gains ranging from 5.5% to 40% over the month, including bear market years.
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However, markets usually gain around the middle of October if previous cycles are anything to go by.
BTC lost around 7% in the first half of October 2023, hitting $28,500 on Oct. 2 before falling to $26,650 by Oct. 13. The asset then skyrocketed almost 30% to end the month at $34,500.
Source: Ash Crypto
Bitcoin has lost around 4.7% so far this month from its October high of $64,000 on the first of the month to current prices.
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