October’s Crypto Rally Faces Setback, But ETF Demand Offers Hope
october began with high hopes for crypto enthusiasts. Bitcoin surged to new all-time highs, driven by strong ETF inflows and institutional interest. However, a massive $19 billion liquidation event disrupted the rally, pushing Bitcoin prices down sharply.
Historically, October has been a bullish month for Bitcoin, often referred to as “Uptober.” Since 2013, Bitcoin has averaged a 46% return in October. This year, the trend seemed to hold as Bitcoin reached new highs above $126,000. However, the market’s thin order books and high leverage levels exacerbated the impact of the liquidation, leading to a flash crash.
Analysts from Kaiko noted that the panic selling exposed a important liquidity gap. As the selling pressure increased, there was insufficient depth in the order books to absorb the flow, causing prices to plummet.
Despite the setback, some analysts remain optimistic. K33 Research believes the market is now healthier after the deleveraging, with reduced structural risks. They see the coming weeks as a good time for capital deployment into Bitcoin,expecting a normalization of funding dynamics to support renewed upside momentum.
Glassnode also highlighted the positive side, noting that prior to the liquidation, institutional demand was robust, with over $2.2 billion in U.S. spot-ETF inflows. This steady accumulation indicates a durable rally,even if it’s in its late stages.
The future of Uptober now hinges on whether market makers, institutional buyers, and option sellers can rebuild depth.If they do, the rally could still finish strong. otherwise, October may be remembered as the month the rally hit a liquidity wall.
