The post Has The Crypto Bull Run Begun With ‘Uptober’ Trend Revival Or Is It A Trap? Here’s What To Expect appeared first on Coinpedia Fintech News
As October comes to an end, the Market is witnessing a renewed purchasing sentiment, marking a remarkable recovery and unlocking the full potential of the ‘Uptober’ trend. This week kicked off with a promising start on Monday, as Bitcoin price climbed to a peak of $35K, following news of upcoming ETFs. However, amidst rising profit-taking indicators visible in on-chain data, investors are struggling with uncertainty: is this bull run a trap, and does it possess the structural backbone to sustain this pace?
Investors’ Greed Backed By Fundamental Support
In the past 24 hours, the market has seen a sweeping liquidation of approximately $429 million, with short positions accounting for a significant $323 million, as reported by Coinglass.
Interestingly, October has breathed new life into the crypto sentiment of 2023, with the total market capitalization touching a yearly high, currently hovering around $1.28 trillion.
The current surge rides on the backbone of several fundamental factors tied to ETFs. Recent days have seen a rising sense of hope for the introduction of bitcoin ETFs in the U.S., a sentiment powered by a favorable court verdict for Grayscale.
This decision heightens the likelihood that its flagship GBTC product could turn into a fully-fledged ETF. Additionally, BlackRock’s ETF inched forward upon the listing of its product (IBTC) on a Depository Trust & Clearing Corp. website, complete with a unique identifier.
Although this progress doesn’t imply a direct sanction of an ETF, the community maintains a bullish view, anticipating upcoming approval. With the influx of institutional capital into the market, the current bull run shows promising signs of sustainability.
Investors Are Confident This Time
Data from IntoTheBlock indicates that approximately 80% of Bitcoin addresses are currently in profit, signaling strong market sentiment with fewer investors inclined to sell at this moment. Nonetheless, the sudden increase in Bitcoin’s value saw short-term bulls seizing the opportunity, liquidating positions amounting to nearly $50 million. This slight profit-taking is typical behavior and is not expected to put any downward thrust on the current market.
With Bitcoin and Ethereum registering over a 10% increase in the last 24 hours, accompanied by meteoric rises in altcoins, the urge among investors to accumulate more coins is skyrocketing. The market conditions are feeding an exponential surge in the greed to accumulate as the Fear and Greed Index surged toward 66.
This indicates that Bitcoin’s climb to $35K has acted as a magnet for investors, encouraging an increased accumulation of coins. However, a continued upward trajectory in the index could bring a phase of ‘extreme greed,’ potentially triggering a correction.
Nonetheless, the market is primed for a bullish rally in the upcoming months, following the buzz surrounding ETFs and historically bullish weeks. Given these factors, there’s a strong sentiment that this rally has the foundations to maintain its momentum.