Finally, the “uptober” effect, long awaited by investors, began to be seen.
Overall, there are optimistic expectations for cryptocurrencies between now and the end of the year.
Demand for bitcoin (BTC) exchange-traded funds (ETFs) in the United States has skyrocketed this week, putting upward pressure on the price of the currency.
1.86 billion dollars (USD) entered the instruments in the first four days of this period. It is, for the moment, the biggest weekly entry since the price of bitcoin hit a new all-time high seven months ago in March.
This demonstrates a growing interest in the bitcoin market by traditional and institutional investors, who usually access ETFs. However, it remains to be seen how the instruments will close this Friday, due to the global environment that is changing with the development of the war in the Middle East.
Israel reported Yesterday afternoon, Thursday, the death of the leader of Hamas, Yahya Sinwar, signaling that with this the war in the Middle East is closer to the end. While this may shake the markets, bitcoin was calm for the momentindicating that ETFs could continue with inflows.
Below you can see the flow of bitcoin ETFs in the United States by week since their launch at the beginning of the year.
The surge in demand for ETFs has driven the price of bitcoin this week to $68,000, its highest since July. In this way, the currency maintains the upward trend of the last two months, breaking the corrective streak that it showed in the previous five months. This can be seen in the following graph.
Uptober shown underway for bitcoin
With this behavior, expectations are raised that the phenomenon of “uptober” has begun, a concept that combines the English words up (go up) and october (October). This concept is used in financial markets due to the upward trend they usually experience during this month.
Because economic activities are reactivated this month after the summer in the northern hemisphere, where the economic powers are located, the markets tend to rise. For the case of bitcointhis month has been the one that closed higher the most times and greater profits it has given, as shown in the following graph.
At the moment, the price of bitcoin has risen 7% so far in October, something that has also been motivated by the macroeconomic environment. The greater liquidity generated by interest rate cuts in the United States, China and Europe has motivated this scenario.
Increasing bets on a victory for Donald Trump in the US presidential elections scheduled for November 5 have contributed to optimism. This candidate, leader of the Republican Party, plans to boost the ecosystem and maintain reserves in bitcoin if he wins, which is why he is seen as a catalyst for the market.
With this panorama, as reported by CriptoNoticias, optimistic forecasts for bitcoin for the coming days abound. According to the bets on the Polymarket platform, most expect the coin to surpass the price of USD 70,000 in October and reach a new all-time high before the end of 2024.
Meanwhile, bitcoin is trading 10% off its all-time high of $73,700 recorded seven months ago.
