Today, the crypto market is surging, breaking through the $31,000 mark, and it’s not by chance; it’s the result of a combination of various factors, one of which is the crypto market’s volumes reaching their highest levels for the month of October.
Meanwhile, an interesting report published by blockchain data that a whopping 76% of all Bitcoins are held by long-term holders, those who haven’t moved their coins for over 155 days. This unwavering confidence from long-term holders is one of the driving forces behind today’s market upswing.
October Sets Daily Volume Records
October has gained the nickname “Uptober” due to its historical positive returns in the crypto market. On 19 October, Bitcoin and crypto market volumes surged from $1 billion to over $2.7 billion.
Notably, the trading volume recorded on October 15 set a new record, marking the highest daily trading volume for the entire month.
Leading the charge in today’s rally are Bitcoin (BTC), currently trading at $30,809, Solana (SOL) at $30.85, and a host of other altcoins. Their collective resurgence rekindles the familiar and bullish momentum often associated with “Uptober.”
Bitcoin Regains Dominance
Bitcoin is making a strong comeback in the crypto market, positioning itself above the 50% market dominance threshold, a feat it hasn’t achieved since June 28.
Typically, when Bitcoin’s dominance breaks, there’s a surge in interest in altcoins and other cryptocurrencies. This renewed dominance coincides with Bitcoin models projecting its potential to reach $135k following the 2024 Bitcoin halving event.
Liquidations and Short Squeezes
The crypto market rally commenced on October 21, triggering a wave of short position liquidations across the market, totalling more than $64 million within a mere 24 hours. Leading the way were Bitcoin short liquidations, including a staggering single liquidation of $2.53 million on the Binance exchange.
Despite the losses suffered by short-sellers, 50.9% of the futures market remains skewed toward short positions. This imbalance presents the potential for a short squeeze that could further drive prices upward.
While October’s positive price action provides a short-term boost, Bitcoin and altcoins still face potential risk events that could impact their prices.
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