Key Takeaways
Is ‘Uptober’ still on track despite the recent crash?
Key data shows that bullish momentum remains intact after the record liquidation.
Which external events support confidence in the crypto market?
The crypto office in New York City, possible interest rate cuts by the Fed and easing trade tensions will help.
It looked like the recent crash knocked ‘Uptober’ to the ground, but it looks like that’s not the case.
With bullish patterns remaining strong, key metrics flashing green, and New York City stepping up its crypto game with a major new initiative, the market’s mood is shifting from hopeful to confident.
The markets are wobbling, but the bulls are holding the line
The crypto market faced the largest liquidation in history last week. But surprisingly, it didn’t break.
Market analyst Scott Melker said in a X after,
“After the largest liquidation in crypto history, I expected October to be deep in the red. Somehow it’s still holding up. That honestly feels like a small miracle.”
Melker explained that the recent downturn was not caused by fear or market sentiment, as we saw during the crashes of 2017 and 2021. Instead, he described it as a “purely structural” shakeout, which forced the market to pause and reassess risks.
He pointed to several developments that indicate growing confidence and long-term commitment to the crypto space. Public companies continue to add Bitcoin to their balance sheets, demonstrating institutional conviction.
Luxembourg has taken a historic step within the eurozone and promoted crypto regulation. The CME is preparing to offer 24/7 crypto trading, due to the rising demand for constant market access.
At the same time, stablecoin issuers are experiencing rapid growth, US states are exploring ways to buy and hold Bitcoin, and the S&P is working on a dedicated crypto index.
According to Melker, these are signs that the so-called ‘smart money’ is not leaving the market, but is actively building the infrastructure for the next growth phase.
And now? The recovery in market capitalization, rising gold prices and steady institutional interest indicate that the bulls are not retreating yet.
The stars align
One of the biggest confidence boosts this month came from New York City bold move to establish the nation’s first Office of Digital Assets and Blockchain under Executive Order 57.
Mayor Eric Adams, often referred to as the “Bitcoin Mayor,” says the initiative is about “embracing the technologies of tomorrow” while expanding financial access.
Serious institutions are leaning towards crypto, not away from it.
Source: nyc.gov
Meanwhile, the planned Trump-Xi meeting on trade could ease investor concerns, and talk of Fed rate cuts could improve market sentiment. Add to that the rally in gold and the continued talk of “debasement trade”… ‘Uptober’ still has plenty of fuel.
‘Uptober’ is still alive!
October has seen an average gain of 20% for Bitcoin [BTC]and current evidence suggests that optimism may not be misplaced.
Source: CoinGlass
Total Open Interest remained stable at around $33.7 billion after the massive flushout, so debt levels are recovering in a healthier manner. Meanwhile, BTC was trading around $112,000 at the time of writing, with support forming near the 100-day EMA.
Source: Coinalyse
Indicators such as the RSI showed that Bitcoin was not overheated, leaving room for upside potential. With historical seasonality on its side and market structure stabilizing, ‘Uptober’ could once again live up to its bullish reputation.
Source: TradingView
Maybe it’ll just take a slower, steadier route this time.