Bitcoin (BTC), Ethereum (ETH), and altcoins started the new week with sharp declines yesterday. Following yesterday's sell-off, over $1.7 billion worth of leveraged positions were liquidated. Markets are starting to show signs of stability as investors try to digest one of the biggest liquidations of the year. At this point, BTC is holding above $112,000 and ETH is holding around 4100. While Bitcoin's future direction is being closely watched, Singapore-based analysis firm QCP Capital said that crypto markets are stabilizing after massive liquidations of over $1.7 billion, and October, known as a bullish month, is expected. QCP said the short-term trend is weak, but institutional demand is strong and positive. Accordingly, capital inflows into spot ETFs continue. Analysts also hinted at strong confidence in October, saying investors have begun positioning for October, historically the strongest month for BTC, and there is strong demand for call options in the $120,000 to $125,000 range. Analysts added that Fed Chair Jerome Powell's speech and PCE data will be the focus for Bitcoin and altcoins this week. “Bitcoin is still up 4% in September, a seasonally weak month for cryptocurrencies. Traders are also preparing for October, BTC’s historically strongest month, and are taking positions for call options with active demand between 120,000-125,000. BTC has held within the 110,000-120,000 range this quarter, with volatility subdued as altcoins have taken center stage. Following yesterday's shakeup and as October approaches, the focus is likely to return to BTC. “Furthermore, Powell's comments and this week's Core PCE data could act as catalysts for a breakout in the fourth quarter.” Why Is October So Important? October holds a special place for Bitcoin. The market has nicknamed it “Uptober” because it typically produces strong gains. Bitcoin surged from $10,500 to $13,800 in October 2020, triggering the 2021 bull run and subsequently surpassing $60,000. In October 2023, it rebounded sharply from $27,000 to $35,000, kicking off the 2024 rally. With Bitcoin's strong performance in October, the market expects October 2025 to be the start of a new bullish wave. *This is not investment advice. Continue Reading: Analyst Firm Sounds Hopeful for Bitcoin After Biggest Liquidation of the Year! "Prepared for a Historic Major Breakthrough! Follow These Two Events This Week!"
