Cryptocurrency markets faced a significant downturn on Monday, with total market capitalization plunging by $80 billion. Bitcoin (BTC) dropped to a twelve-day low of $114,270, while Ether (ETH) fell more than 4% to below $4,300, marking its lowest level in two weeks. This retreat comes just ahead of October, a month historically known as 'Uptober' for Bitcoin's strong performance.
According to data from CoinGlass, Bitcoin has posted gains in 10 out of the last 12 October since 2013, with notable surges of 48% in 2017 and 40% in 2021. However, analysts are divided on whether this trend will persist in 2025. Kyle Chassé, a prominent Bitcoiner, highlighted a 92% probability of a Federal Reserve rate cut in October based on CME futures, suggesting that increased liquidity could fuel a crypto rally. Similarly, BitMEX co-founder Arthur Hayes predicted an 'up only mode' for crypto once U.S. Treasury liquidity targets are met.
In contrast, skeptics like Jeff Mei, COO of BTSE exchange, attribute uncertainty to macroeconomic factors and September's stable performance. Augustine Fan of SignalPlus noted that any BTC rallies may be muted due to low implied volatility, weakened momentum, and profit-taking pressure, advising long-term investors to be patient for new all-time highs.