On October 1, a surprise jump in the prices of Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies caused $70 million in crypto shorts to be liquidated. According to TradingView, Bitcoin rose 3% in just 15 minutes, from $27,100 to $28,053, while Ether gained 4.7%, rising to $1,755 before settling to $1,727. The crypto community is unsure what sparked the sudden movement, but many believe it is related to the arrival of “Uptober.” The Wolf Of All Streets tweeted, “Happy Uptober to those who celebrate,” while Michaël van de Poppe wrote, “Welcome to Uptober. Welcome to Q4, which is leading towards a great quarter, potentially fueled by ETF approvals and the pre-halving rally. Potentially #Bitcoin to $40,000 is reasonable.”
Uptober is the term used to describe October as a bullish month for the prices of Bitcoin and other cryptocurrencies. Data from CoinGlass shows that October has only seen negative monthly returns twice since 2013. Optimism is high that the United States Securities and Exchange Commission will approve a spot Bitcoin ETF product soon, though most analysts are predicting a January 2024 announcement.
The rapid price action provided good news for those with long positions, but bad news for short sellers as $70 million worth of shorts were liquidated in two hours. According to Coinglass, $36 million in BTC shorts and $23 million in ETH shorts were liquidated.
It remains to be seen what this Uptober will bring, but whatever the outcome, it is sure to make an impact on the cryptocurrency market.