#Bitcoin , the most popular and valuable cryptocurrency in the world, has started the last quarter of the year with an upward trend, surpassing $28,000 for the first time since August. Its growth has been driven by several factors, such as the temporary agreement to avoid the US government shutdown, the expectation of the approval of spot Bitcoin ETFs, and the shortage of supply on exchange platforms.
But what can we expect from Bitcoin in the month of October? Is it a good time to invest in this cryptocurrency or should we be cautious? Let's see what the experts and historical data say.
Historical perspective
According to data from Coinmarketcap.com, Bitcoin has had a positive October performance in six of the last eight years. Last year, for example, Bitcoin rose 28% in October, going from $10,775 to $13,816. The best October in Bitcoin history was 2015, when it soared 38%, from $238 to $328.
However, there have also been negative Octobers for Bitcoin. The most recent was in 2018, when it fell 4%, from $6,598 to $6,320. The worst was in 2014, when it plummeted 25%, from $387 to $290.
Therefore, we can say that October is a month that is usually favorable for Bitcoin, but it is not free of risks and volatility.
Current perspective
At the time of writing, Bitcoin is trading at $19,175, with a change of -0.56% in the last 24 hours and 0% in the last week. Although it remains below $20,000, its most important psychological level, it has managed to recover from the falls it suffered in September, when it reached $16,000.
Analysts have varying opinions on the near future of Bitcoin. Some are optimistic and believe that it could surpass $24,000 in October if it breaks the $21,000 resistance. Others are pessimistic and predict that it could fall to $13,000 if the Fed tightens its monetary policy and the dollar strengthens.
Among the factors that could influence the price of Bitcoin in October are:
The SEC's decision on spot Bitcoin ETFs. The SEC has several times postponed its verdict on applications from several companies that want to launch Bitcoin-based exchange-traded funds. Some experts believe there is a 95% chance they will be approved in early 2024, which could generate huge demand and increase the value of Bitcoin.
The activity of whales and holders. Whales are investors who own large amounts of Bitcoin and can move the market with their operations. Holders are investors who hold their bitcoins for the long term and do not sell them. According to some indicators, whales have been buying bitcoin moderately in recent weeks, while holders have reached an accumulation peak. This could indicate confidence in the future of Bitcoin and less selling pressure.
The evolution of the pandemic and the global economy. The COVID-19 pandemic has deeply affected the world economy, generating uncertainty, inflation and crises in some countries. This has prompted many investors to seek refuge in alternative assets such as Bitcoin, which offers greater independence and resilience compared to traditional financial systems. However, it has also led to increased regulation and restriction of cryptocurrencies in some places, such as China, which has banned Bitcoin transactions and mining.
Conclusion
Bitcoin is an asset that offers great investment opportunities, but also carries great risks and challenges. October is a month that has historically been favorable for Bitcoin, but there are no guarantees that the pattern will repeat itself. Therefore, it is important to be attentive to the factors that can influence the price of Bitcoin, as well as your own investment objectives and strategies.
Before investing in Bitcoin, it is advisable to be well informed, diversify your portfolio and use safe and reliable platforms. One of them is Bitcoin Minetrix ($BTCMTX), a new cryptocurrency that has just started its pre-sale and that promises to be a good investment option this month. Bitcoin Minetrix is based on blockchain technology and offers an ecological, profitable and accessible mining platform for everyone. If you want to know more about this project, you can visit their website or buy their tokens.
Reference
Bing. (2023). Is October the best month to invest in Bitcoin? Recovered from 1
