‘Uptober’ Sentiment Fades as Crypto Markets Face Significant Downturn

The once bullish outlook for the crypto market in October, often referred to as “Uptober” on social media, has taken a sharp downturn. Data from on-chain analytics provider Santiment reveals a significant decline in mentions of “Uptober” as the crypto market continues to slide. Since the beginning of October, the total crypto market capitalization has plummeted by $200 billion, signaling a wave of pessimism that has replaced the earlier optimism for this historical month of a crypto market bull run.

Social Sentiment Shifts Amid Market Decline

October has often been seen as a month of strong performance for Bitcoin price and other cryptos, earning the moniker “Uptober” due to its past history of gains. However, as the market has faced significant losses this month, mentions of “Uptober” across social platforms have dwindled. Instead, terms like “Selltober” and “Octobear” have gained traction, reflecting the growing bearish sentiment in the crypto community.

🎃 Mentions of “Uptober” have declined significantly, painting a picture that traders have become much more bearish on the idea of this month being an automatic money printer for crypto. The lack of optimism opens the door for (at least) a short-term bounce. 📈 https://t.co/iACWMGPvSs

— Santiment (@santimentfeed) October 3, 2024

Santiment, a leading provider of on-chain analytics, noted in an X (formerly Twitter) post on October 4 that traders have largely given up on the idea that October would be an “automatic money printer for crypto.” The shift in sentiment has been rapid, as traders and investors now brace for a potential prolonged downturn.

Read: When will the crypto market bull run begin?

Bearish Sentiment Opens the Door for a Rebound?

While optimism for an “Uptober” has waned, Santiment founder Maksim Balashevich believes the current pessimism could create a window for a short-term market recovery. He stated, “Uptober excitement wanes as the market dips, which does open the door for a rebound. Whether the bigger downtrend is over remains to be seen.”

Veteran crypto trader Ash Crypto echoed similar sentiments, noting that the downturn could shake out weaker hands, leading to a more sustainable rally. In a post to his 1.1 million X followers, he predicted that “BTC could drop a little more so that people will stop believing in Uptober,” before adding that once bearish traders start calling for extreme lows, “BTC will pump hard.”

Factors Driving the Market Down

According to a report from 10x Research analysts, several factors have contributed to the current market slump. Despite inflows from Bitcoin Spot ETFs, increased futures leverage, and stablecoin purchases, sell-offs from early adopters (OGs) and large token unlocks have outweighed buying pressure. The report highlighted that technical indicators showed the rally was overextended and ripe for a correction.

BTC/USD | Source: TradingView

This correction has been felt throughout the entire crypto market, with Bitcoin price briefly dipping below $60,000 on October 3 before reclaiming $61,000. While the drop may seem concerning, it’s not uncommon for markets to face temporary setbacks before recovering later in the month.

Historical Performance: Uptober Often Starts Slow

Historically, October has been a bullish month for Bitcoin price. In nine out of the last eleven years, Bitcoin price has posted gains during this month, with October being particularly favorable even during bear markets. The past five years alone have seen Bitcoin’s value increase by anywhere from 5.5% to 40% in October.

While Bitcoin price has lost roughly 4.7% so far this month, many analysts believe that a mid-month rally could still be on the horizon, following a pattern seen in previous years.

Souce: CoinTelegraph