Bitcoin, which made a strong start to October, known as Uptober, or the month of rise, rose to the level of $ 28,500.
This rise was thought to be driven by optimism about wider adoption of cryptocurrencies after Ethereum futures ETFs began trading yesterday.
However, BTC, which could not continue this rise, dropped by 2.5% in the last 24 hours and fell to the level of $ 27,550.
This decline also showed itself in altcoins, with Ethereum (ETH) 4.1% in the last 24 hours; BNB 2%; Dogecoin (DOGE) fell by 2.7% and Caradano (ADA) fell by 2.2%.
Evaluating this decline, Cici Lu McCalman, founder of Blockchain consultant Venn Link Partners, said, “Since the macro environment is still hawkish on interest rates, the Bitcoin price increase was short-lived. Because the increase in US Treasury bond yields put pressure on Bitcoin. In addition, the FED took a long time to suppress inflation. “Expectations that it will impose higher interest rates are increasing. Tighter financial conditions are a negative headwind for stocks and cryptocurrencies,” he said.
Speaking to Coindesk outside McCalman, Lucas Kiely, chief investment officer of Yield App, said:
“October is also generally a good month for the cryptocurrency market.
Bitcoin has closed at a loss in October only twice since 2013, and we hope to see a continuation of that trend this year.
However, it is a little too early to get excited about current price movements.
Because it is unlikely that a significant rally will begin without other catalysts that will move BTC.
Because the ongoing Sam Bankman-Fried feud could take things either way.”
Finally, Bitfinex analysts also evaluated the possibility of a possible rally for BTC.
At this point, analysts say that long-term investors continue to increase their assets and this increases demand, adding that “BTC in the hands of long-term holders continues to reach new peaks as short-term holders sell. This may cause volatility to move upwards for cryptocurrencies soon.”
*This is not investment advice.