Uptober in Threat: Will Bitcoin Show Annual Growth in October 2024?

• October has traditionally been a month of recovery and growth for bitcoin, earning it the name “Uptober” among investors and traders.
• Historically, the cryptocurrency has often staged significant rallies during this month, with a notable 40% increase in October 2021.

However, the landscape in 2024 looks a little more uncertain. Will BTC repeat its typical October gains, or are we in for a more volatile ride? As we dive into the dynamics of October 2024, we explore the trends, challenges, and opportunities that lie ahead for bitcoin and investors.

What’s Different About October 2024?

In previous Uptobers, bitcoin benefited from positive macroeconomic trends, increased institutional interest, and improved sentiment in financial markets. This year, similar forces are at play. However, there are unique headwinds and dynamics this time that create a more complex situation for predicting bitcoin’s performance.

Experts have noted that bitcoin could reach a range between $60,000 and $70,000 by Halloween. This optimistic outlook is partly driven by the residual effects of bitcoin’s halving in April 2024. Historically, bitcoin rallies within 6 to 12 months after a halving event, as the reduction in supply tends to push prices upward, especially with rising institutional interest. However, recent selling pressure from BTC holders has slowed the momentum, leaving the market in a state of cautious optimism​.

Factors contributing to bitcoin’s uncertainty

Several factors are contributing to the uncertainty around bitcoin’s growth prospects this October:

1. Profit-Taking and Investor Sentiment: Despite the potential for an October rally, selling pressure from bitcoin holders looking to capitalise on recent gains is tempering the market’s bullish momentum. This profit-taking behaviour is evidenced by rising realised profit/loss ratios, which suggest that many investors are exiting positions rather than holding out for further gains. Historically, such spikes in the ratio often precede corrections​. The Fear and Greed Index has also been fluctuating, recently dipping back into the “Fear” zone at 37 points. This index, which measures overall market sentiment, indicates that many traders remain cautious despite bitcoin’s potential. Fear-driven markets can slow down otherwise bullish trends, as investors prioritise capital preservation over gains.
2. Institutional Adoption and Scarcity: On the brighter side, increased institutional interest and bitcoin’s limited supply continue to work in favour of a long-term bullish trend. Institutional investors view bitcoin as a hedge against inflation and economic uncertainty, leading to increased demand. With only 21 million bitcoins ever to exist, scarcity is a powerful driver of bitcoin’s value, particularly post-halving. The April 2024 halving reduced the block reward from 6.25 BTC to 3.125 BTC, decreasing the rate at which new bitcoin is minted. This scarcity effect, combined with inflation concerns and growing interest from institutional players, could provide the fuel bitcoin needs to break through the $65,200 resistance and push toward $70,000 or higher. But for this to happen, institutional inflows must accelerate.
3. Macroeconomic Trends: Favourable macroeconomic conditions, such as China’s recent stimulus measures and a Federal Reserve rate cut, could further propel bitcoin’s price. When the broader financial markets show optimism, investors often turn to riskier assets like bitcoin. However, this optimism has not yet been fully reflected in the crypto markets, which remain vulnerable to shocks, especially with geopolitical tensions and volatility on the rise.

Strategic moves for investors: maximise profits with EXMO.com EARN program

While bitcoin’s short-term future remains uncertain, there are proven strategies that investors can leverage to navigate the volatility and maximise returns. One such option is the EXMO.com EARN program, a passive income mechanism that allows users to stake their bitcoin (and other assets) for regular returns.

In volatile markets, staking offers a way to profit from your crypto holdings without having to sell them. For instance, bitcoin holders on EXMO.com can earn up to 5% APY on their BTC, while Ethereum (ETH) stakers can receive up to 6% APY. EXMO’s own token, EXMO Coin (EXM), provides an even higher return of up to 17.5% APY.

Here’s how staking through EARN program works:

1. Hold Your Crypto: By staking BTC, ETH, or EXMO Coin in the EARN program, users lock their assets for a specified period.
2. Earn Passive Income: During the staking period, users receive regular rewards, which accumulate passively. At the end of the staking term, they can either withdraw their rewards or reinvest to continue earning.
3. Diversification Opportunity: The EARN program can be used in conjunction with other investment strategies, such as dollar-cost averaging (DCA) or diversifying portfolios into multiple assets.

By participating in staking, investors not only shield themselves from short-term price fluctuations but also benefit from predictable returns, enhancing the overall yield of their crypto portfolios.

Diversification: minimise risk, maximise opportunity

In addition to staking, diversifying your portfolio remains one of the safest strategies to maximise gains while minimising risk. As bitcoin becomes increasingly influenced by external factors like institutional adoption, inflation, and market sentiment, diversifying into other promising assets can provide a buffer against volatility.

While bitcoin and Ethereum are the cornerstone investments in most portfolios, assets like Polkadot, Solana, or new projects from the TRON ecosystem could experience faster growth in an Uptober rally. Combining these assets with high-yield options in EXMO’s EARN program could further bolster returns.

Can bitcoin continue the Uptober trend?

So, will bitcoin maintain its Uptober trend and deliver another annual growth in 2024? While the historical precedent suggests optimism, the market remains sensitive to external shocks, profit-taking, and volatility. The key to success lies in being prepared and leveraging all available tools to manage risks and maximise returns.

Whether bitcoin climbs to $70,000 or faces short-term corrections, investors can still make the most of the opportunities through diversified portfolios, strategic staking in the EXMO.com EARN program, and staying informed about market movements. EXMO.com provides the platform, tools, and insights to navigate the uncertainties of October and beyond. Stay tuned, stay diversified, and be ready for the potential rise of bitcoin in Uptober.