As the first weekend of October approaches, cryptocurrencies are attempting to rebound from a market slump influenced by geopolitical tensions.
On October 4, major cryptocurrencies and the total digital asset market capitalization surged by over 2%, with industry giants like Bitcoin and Ethereum showcasing significant price recoveries. Bitcoin saw an influx of nearly $36 billion, pushing its price above $62,300—a 3% increase. Ethereum followed suit with a 4% rise, reaching over $2,400, while Solana edged closer to $145, as reported by CoinGecko.
The uptick in prices was mirrored by a notable rise in memecoins, particularly on the Solana network. Tokens such as Gigachad (CHAD), Michi (MICHI), Popcat (POPCAT), and Dogwifhat (WIF) experienced spikes ranging from 20% to 40% in just 24 hours.
Weekly Outlook for Cryptocurrencies Remains Uncertain
Despite the daily gains, the overall weekly outlook for cryptocurrencies remains uncertain. The recent price increases offered only a minor reprieve from the sharp declines triggered by military tensions in the Middle East. Following Iran’s missile strikes on Israel, global markets and assets suffered significant losses, with the total cryptocurrency market cap reflecting a downward trend on the weekly chart. After experiencing three consecutive weeks of gains throughout September—a month generally perceived as bearish for cryptocurrencies—the market is now under pressure.
To revert to last month’s closing levels, the total digital asset market would need to recover by approximately 8%. However, some experts anticipate a potential rise in the crypto market. Historically, Bitcoin has demonstrated a bullish trend in October, particularly in years when it closed September with a positive monthly candle. Out of the last eleven occurrences, Bitcoin surged in nine of them during the first month of the fourth quarter, irrespective of the preceding month’s performance.
Since 2013, Bitcoin has averaged gains of 22%, 46%, and 5% in the final three months of each year, indicating a historical pattern that could repeat this time around.
Related topics:
Changpeng Zhao, Binance Founder, Released Early from Prison
Bank of Canada Halts Digital Dollar Project Amid Global Surge in CBDC Development
Four Japanese Banks Join Digital Currency Project for Cross-Border Payments
