The cryptocurrency market witnessed a significant uptick, with the total market capitalization climbing by 2% over the past 24 hours, reaching approximately $2.28 trillion on Saturday, October 12. This bullish trend was observed during the early European session. A notable reaction from the altcoin sector followed Bitcoin’s (BTC) price surge, which peaked at around $63,361 on Friday during the mid-New York session.
Despite the considerable rebound in the crypto market over the past day, there were no significant liquidations. Many crypto traders are bracing for increased volatility over the weekend, especially after Bitcoin’s price dipped below $59k, a level not seen in the last three weeks.
Major Forces Behind Today’s Crypto Pump
Re-emergence of Whale Demand
After a period of decline, the U.S. spot Bitcoin ETFs saw a net cash inflow exceeding $348 million on Friday. BlackRock’s IBIT led the inflows with approximately $140.7 million, closely followed by Fidelity’s FBTC, which attracted around $117 million. Concurrently, the spot Ether ETF issuers reported a net cash inflow of about $2 million on the same day. This influx has led to a reduction in the net supply of Bitcoins on crypto exchanges by approximately 10,000 over the past week, while Ether’s supply diminished by around 24,600 in the last 24 hours.
Favoring Technical Aspects
Prominent crypto analyst Benjamin Cowen pointed out that Bitcoin has reclaimed crucial support levels following its recent bounce. From a technical perspective, Bitcoin is developing a fractal pattern akin to last year’s bullish breakout in the second half. A sustained rise above $66k could ignite a wave of FOMO (Fear of Missing Out) traders, further propelling Bitcoin’s price towards its all-time high. Such momentum is likely to influence the altcoin sector, potentially sparking a widespread crypto rally in the months ahead.
Fourth Quarter Bulls
The fourth quarter generally proves favorable for Bitcoin, except during midterm years like 2014, 2018, and 2022. The only recent deviation was in 2019, yet from a temporal viewpoint, this comparison has largely played out. Following Bitcoin’s rebound from below $59k to over $63k, the concern over further crypto capitulation has diminished significantly. The Bitcoin fear and greed index rose from 32%, indicating market fear, to 49% today, reflecting a neutral sentiment among traders.
The bullish sentiment for October is gradually returning, with expectations of Bitcoin maintaining a rising trend in the near future. Moreover, the upcoming U.S. general elections in three weeks have historically fostered bullish trends. Additionally, gold and major stock indexes have been experiencing bullish breakouts recently, further indicating positive momentum in the financial markets.
