- October is Bitcoin’s best-performing month yet in 2021.
- The asset ended the month of October with prices above $60,000, cementing it in a firm upswing.
- The ecosystem looks forward to MooNovember as the continuation of the fine streak.
October turned in a stellar display for Bitcoin after a shoddy September that was marred by lackluster price performances. It wasn’t mere luck but a combination of several factors that aligned perfectly for the king of cryptocurrencies.
Uptober – All The Good Tidings
Bitcoin ended September with prices at around $43K despite the widely anticipated effect of the adoption of the asset as legal tender by El Salvador. The negative balance at the month’s end meant it was the sixth September in a row that Bitcoin had performed badly but investors kept the faith alive that October would bring new tidings.
October didn’t disappoint as Bitcoin broke the shackles of September to reach an all-time high of $66,930 and a market capitalization of $1.2 trillion. There had been speculation that October would birth the first Bitcoin ETFs in the US and optimists were duly rewarded after the ProShares Bitcoin Strategy ETF went live. It was soon followed by the Valkyrie Bitcoin Strategy Fund amid heightened talks that the SEC could approve a Bitcoin spot ETF.
“New data shows that long-term holders continue to contribute to the supply shock even through BTC’s new record highs,” says a recent Kraken report. The report titled Shocktober cited a supply shock as part of the reasons for Bitcoin’s dominance in October.
Bitcoin finished the month with prices above $60,000 while altcoins also rode the waves of the bullish month. Ethereum set a new all-time high of $4,455 on October 29th while Solana and Shiba Inu went on to set new all-time highs this month. The crypto market cap currently sits above $2.7 trillion thanks to the memorable events in October.
It is believed that Bitcoin’s run will continue into November on the back of several predictions that the asset is poised to exceed $100,000 by the end of the year. However, some analysts have warned investors to be wary of a pullback after a blistering performance.
Bitcoin’s Taproot Upgrade is slated for a date in November and both retail and institutional investors are eyeing the effects that it could have on prices. The last time a major upgrade came to the network in 2017, prices surged by 50% with Don Guo, CEO of Broctagon Fintech Group noting that the Taproot Upgrade will be a “revolutionary moment for Bitcoin.”
However, Edward Moya of Oanda comments that “the Taproot upgrade will have a minimal impact on bitcoin’s price” and so, investors should tread with a bit of caution. Yet institutional investors continue to flock to the asset class while being buoyed by the launch of Bitcoin ETFs. Miners are now finding their footing once again after the tragic episode with Chinese authorities, hinting toward a positive future for the asset class.