Social Media Loses Faith in ‘Uptober’ as Crypto Markets Sink
Date: 2024-10-04 Author: Henry Casey Categories: CRYPTO PAYMENTS
Traditionally, October is considered a favorable month for cryptocurrencies, with many social media users dubbing the period “Uptober,” expecting prices to rise. However, as analytics company Santiment notes, the situation in crypto markets has changed since the beginning of October: about $200 billion has left the market, and positive sentiment on social media has noticeably weakened.
According to a post by Santiment on the X network (former Twitter), mentions of “Uptober” have sharply decreased, and traders no longer believe that this month will bring automatic revenue growth. Instead, users have started using new terms such as “Selltober” and “Octobear,” emphasizing bearish sentiment.
However, Santiment founder Maxim Balashevich noted that the decline in enthusiasm could be a signal for a short-term market rebound. In his opinion, the current correction opens the way for a possible recovery, although there is no certainty that the downtrend will end.
A veteran crypto trader under the nickname "Ash Crypto" also expressed the opinion that the decline may continue to finally undermine faith in "Uptober". He said that as soon as the bears start talking about Bitcoin reaching $40-45 thousand, the market may sharply turn around and go up.
According to analysts at 10x Research, many bullish traders have been confused since March, expecting further growth, but faced unexpected sell-offs. Technical indicators indicated that the market was too overheated. In addition, large sales and token unlocks played a role in the price drop, despite significant infusions of stablecoins and growth in futures positions.
Historically, October has been a profitable month for Bitcoin in 9 of the last 11 years, giving the month its nickname “Uptober.” Even in bearish years, crypto markets have typically shown gains. For example, over the last five years, October has seen returns of between 5.5% and 40%. However, this year is different: Bitcoin has already lost about 7% since the beginning of October, causing a wave of doubt among investors.
However, there is hope that by the middle of the month, the market will begin to recover, as it has in previous years.
