Bitcoin (BTC) may not have performed as well as expected at the beginning of October, according to one crypto analyst, but analysts say it may not be performing as well as expected this month as investors focus on broader economic events. It may be too early to judge the rest of the trend, he said.
“Most investors are mostly reacting to macro events, so we will judge the trends for the rest of the month,” Ryan Lee, chief crypto analyst at BitGet, said in an October 2 report seen by Cointelegraph. It may be too early.”
Bitcoin is down 5.76% since September 27th. Source: TradingView
Traders echoed that view, noting that October started differently this year, making it impossible to predict how the rest of the month will play out.
Bitcoin trading volume decreases as investors stay on the sidelines
“Just because Uptober started this way doesn’t mean it will end the same way,” says CryptoQuant contributor Axel Adler claimed.
Lee noted that the 16% decline in spot BTC trading volume since October 1 indicates a decline in sentiment, but said it is “explainable.”
He suggested investors would prefer to take a wait-and-see approach to macroeconomic uncertainty and take a more risk-off asset approach.
Bitcoin's market capitalization has declined by approximately 2.5% since October 1st. Source: CoinMarketCap
“Investors don't want to get caught up in macroeconomic conditions that put pressure on their capital,” Lee explained.
What’s slowing down “Uptober”?
Several macroeconomic events may be keeping investors on the sidelines, including expectations for further Fed rate cuts after September's 50 basis point cut, the U.S. presidential election, and escalating tensions in the Middle East.
Related: Bitcoin is once again forming a “three blind mice” trading pattern: Peter Brandt
However, Lee suggested that Bitcoin prices could rise by 18% in the short term once the situation becomes clearer.
“BTC maintains a support level above $60,000 and could move in the $72,000 range. Expectations for lower federal interest rates and a market rebound are driving Bitcoin’s historically optimistic It might come in the fourth quarter.”
Lee also emphasized that despite the decline in trading volumes since early October, “institutional investors continue to purchase digital currencies at rates equal to or higher than daily mined volumes.”
For example, the latest data from Pharcyde shows that a physical Bitcoin exchange-traded fund (ETF) in the U.S. has amassed more than 18,500 BTC (equivalent to more than $1.1 billion at current prices) in 10 months. There is.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should conduct their own research when making decisions.
