In early October, there was a significant drop in usage of the term “Uptober,” the name given to the bull run in Bitcoin and other altcoins. Data provided by on-chain analytics provider Santiment shows that traders are less optimistic about the typical October rally, with overall bearish sentiment in the market. The change in sentiment comes after months of sequential declines, prompting some to dub it "Selltober" or "Octobear."



Bitcoin's historical performance in October:

October has historically been a favorable month for Bitcoin. Bitcoin has seen price gains in nine of the past 11 Octobers, with sharp increases in the past five years. In some cases, even during broader market downturns, the cryptocurrency has seen monthly gains between 5.5% and 40%.

This pattern of price increases in October has prompted the term "Uptober," highlighting Bitcoin's historically positive trend this month. Despite this historical precedent, current market conditions appear far less optimistic. Since the beginning of October, Bitcoin has fallen by about 4.7%.

The cryptocurrency has fallen from a monthly high of $64,000 to just above $60,000. The broader cryptocurrency market is also struggling, with its market capitalization shrinking by about $200 billion since the beginning of the month. This means that the total market value has fallen by 8%, and the market capitalization is back to the level of mid-September.

Market sentiment is down but could rebound be on the horizon?

However, Maksim Balashevich, founder of Santiment, said there are signs that we could see a bull run in the short term. Balashevich mentioned the pattern of “upward Octobers” in previous years, but he also noted that the end of the downward trend is uncertain.

Analysts reported that they wonder if this year will follow a similar pattern, as mid-October is often seen as a period of "crypto market rally." "I expect volatility this year, depending on how investors react to external factors and underlying market benchmarks."

The article is for reference only and does not constitute investment advice.