Market rebounds to $4 trillion despite record liquidations
The recent crypto crash, which triggered the largest liquidation event in history, has not derailed October’s bullish outlook, according to leading market analysts. Despite widespread volatility, experts maintain that “Uptober” remains intact, with the market already rebounding toward a $4 trillion valuation.
Crypto analyst and podcaster Scott Melker said on Wednesday that he expected October to be “deep in the red” following the wipeout but admitted the market’s resilience was surprising. “The fact that we’re still holding on feels like a small miracle. I don’t think we’re entering a bear market,” Melker told followers.
At the time of writing, Bitcoin (BTC) was trading just below $111,000, down slightly from its weekend recovery highs. Melker added that this drawdown was “structural rather than emotional,” contrasting it with crises like the 2017 ICO bubble, the 2021 mining ban, or the FTX collapse.
Analysts expect volatility but dismiss excessive pessimism
Tim Sun, senior researcher at HashKey Group, told Cointelegraph that short-term turbulence was expected after the aggressive deleveraging. “Sentiment remains fragile, but excessive pessimism is unwarranted,” he said.
He added that from a broader perspective, policy easing, improving liquidity, and geopolitical de-escalation should drive medium-term market recovery.
“The path to the next cycle top will be volatile, but structurally the market remains strong,” Sun noted.
‘Uptober’ trend still in play as seasonal patterns persist
Historically, October has been one of Bitcoin’s most profitable months, posting gains in ten of the past twelve years. Although the flagship cryptocurrency is currently down 0.6% this month, data shows most October gains typically occur after mid-month.
In 2023, Bitcoin rose 29% in the latter half of October, while in 2020, it gained 18% during the same period.
Melker also pointed to gold’s recent all-time high, suggesting that capital rotation into Bitcoin may follow. “If gold can rally that hard, imagine what happens when funds start flowing back into Bitcoin,” he said.
Analysts also cite easing trade tensions between the U.S. and China and potential Federal Reserve rate cuts as bullish catalysts. Sun added that while uncertainty remains, the “Uptober” narrative still holds as markets digest the structural reset from last week’s crash.
“This isn’t the end of Uptober — it’s the reset before the next leg up,” said Melker.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.