Bullish crypto sentiment for the month of October, which social media has dubbed “Uptober,” has been waning as markets continue to retreat.
In an X post on Oct. 4, onchain analytics provider Santiment noted that mentions of Uptober have declined significantly since the beginning of the month.
It added that traders have become bearish on the idea that this month will be an “automatic money printer for crypto.” Instead, social media has been awash with memes and mentions of “Selltober” and “Octobear.”
Source: NovaSeeds
Still, Santiment founder Maksim Balashevich says the recent lack of optimism opens the door for a short-term bounce.
“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.”
Bitcoin social volume and social dominance data. Source: Santiment
Veteran trader “Ash Crypto” told his 1.1 million X followers on Oct. 3 that “BTC could drop a little more so that people will stop believing in Uptober” before adding:
“Once bears start getting excited and calling for $40k to $45k, BTC will pump hard.”
In a note to investors on Oct. 4, 10x Research analysts said that since March, many crypto bulls have been caught off guard, expecting the bull run to continue.
Technical indicators suggest the rally was overextended, they said, before adding, “It now seems that sell-offs from early adopters (OGs) and large token unlocks have been driving prices down despite strong inflows from stablecoins, Bitcoin Spot ETFs, and increased futures leverage.”
Uptober isn’t usually on time
Crypto markets have declined by about $200 billion, or roughly 8%, since the beginning of October. Total capitalization was down again as of Oct. 3, falling 1.9% to mid-September levels at $2.2 trillion, according to CoinGecko.
Bitcoin (BTC) briefly dipped below $60,000 on Oct. 3 before recovering slightly to reclaim $61,000 at publication.
But October has historically been bullish for Bitcoin, with positive price action in nine out of the past 11 years, earning the nickname.
The past five consecutive Octobers have seen gains ranging from 5.5% to 40% over the month, including bear market years.
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Still, markets usually gain around the middle of October if previous cycles are anything to go by.
BTC lost about 7% in the first half of October 2023, hitting $28,500 on Oct. 2 before falling to $26,650 by Oct. 13. It then skyrocketed almost 30% to end the month at $34,500.
Source: Ash Crypto
Bitcoin has lost about 4.7% this month from its high of $64,000 on Oct. 1.
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