The ongoing crisis in the Middle East has disrupted Bitcoin's recovery in September, and this trend has persisted into October. Historically viewed as a positive month for the market, Bitcoin has declined by 4.8% to $60,683 in October, with indications suggesting a potential further drop, according to analysts.
"Bitcoin has evolved into a global asset, one whose market valuation is influenced by global events. Market data reveals that over $700 million has been liquidated so far in October, with Bitcoin accounting for a significant portion of this figure. Generally, these liquidations could be seen as a market reset, as most traders were over-leveraged prior to this," stated Ryan Lee, chief analyst at Bitget Research.
On Friday, Bitcoin rose 1.95% to $61,958. "It may be premature to determine the trend for the remainder of the month, as most investors react primarily to macroeconomic events. A review of performance data, such as the 16% drop in trading volume, indicates a weakening sentiment. This reaction is understandable, as investors prefer to avoid being caught in a macroeconomic situation that could tie up their capital," Lee added.
Despite the overall decline, institutional investors continue to purchase digital currency at a rate comparable to or higher than the daily mined quantity (as observed on Cryptoquant). "Currently, Bitcoin has maintained above the $60,000 support level and may fluctuate within the $72,000 range. The anticipation of Fed interest rate cuts and a market rebound could be fueled by Bitcoin's historically optimistic performance in Q4," Lee noted.
Altcoins generally exhibit a strong correlation with Bitcoin. Among them, Solana and Cardano stand out due to their innovative technology, which has garnered community interest. Beyond their current price outlook, both are developing robust and diversified ecosystems that will continue to influence their native tokens.
For instance, Solana has been competing for a share of the DeFi market. With a $10.5 billion TVL, over 77 million SOL have been locked, creating scarcity that could support prices in the long term. Beyond DeFi, Solana is also emerging as a hub for retail transaction growth, with memecoins and DePIN gaining traction rapidly. "Looking at the broader perspective, SOL will remain in high demand, and it's just a matter of time before it surpasses the $260 ATH milestone," Lee predicted.
Cardano is recognized as one of the most advanced blockchain protocols in the market. At $0.34, many consider it undervalued given its recent advancements. "Cardano has recently gained attention as one of the few protocols with decentralized governance. Through the Chang hard fork, the community now has a voice in the protocol's governance, ensuring inclusivity overall," Lee explained.
