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Bitcoin gained 27% in October amid spot Bitcoin ETF enthusiasm

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TL;DR

  • Bitcoin gained a massive 27% in October following a strong enthusiasm for spot Bitcoin ETF.
  • The crypto market and its ETF expectations.

October marked a significant turning point for the cryptocurrency market, characterized by a notable resurgence in various digital assets. The highlight of this resurgence was the substantial surge of Bitcoin (BTC), the flagship cryptocurrency, which experienced its most robust monthly rally since January. The surge propelled BTC to a 17-month high of $35,000, marking a remarkable ascent from its previous levels of around $27,000 in the first half of October.

Bitcoin experiences a bullish frenzy to stay above $34,000

Presently, Bitcoin has stabilized just above $34,000, poised for the Federal Reserve’s impending interest rate decision, widely expected to remain unchanged. This bullish momentum was not confined solely to Bitcoin; it encompassed the broader cryptocurrency market. The CoinDesk Market Index (CMI), which tracks a diverse range of tokens, surged by an impressive 22% throughout October. Overall, the cumulative market capitalization of all cryptocurrencies experienced a surge of nearly 19%, amounting to $1.255 trillion.

This surge represented the most substantial increase in crypto wealth since the 33% surge observed in January. The focus of investors was directed towards the potential approval of Bitcoin exchange-traded funds (ETFs) in the United States. ETFs are perceived as a more accessible investment avenue for the average investor compared to direct cryptocurrency purchases or existing investment products like the Grayscale Bitcoin Trust (GBTC), currently managing assets worth $21 billion.

Despite the initial rejection by the U.S. Securities and Exchange Commission (SEC) of GBTC’s transition into an ETF, subsequent legal developments have raised doubts about this decision, enhancing the likelihood of the SEC eventually greenlighting this transition. This also augurs well for the potential approval of ETF applications from major entities such as BlackRock, the world’s largest asset manager. However, the crypto market’s upward trajectory did not uniformly benefit all sectors within the industry.

The crypto market and its ETF expectations

The CoinDesk DeFi Index (DCF), representing tokens associated with decentralized finance functions like decentralized exchanges, lending, and staking protocols, recorded a more moderate increase of 7% in October. Notably, key DeFi tokens such as Curve (CRV), maker (MKR), uniswap (UNI), and compound (COMP) experienced declines ranging from 3% to 7%. Ethereum’s ether (ETH) exhibited a more subdued gain of 7%. Interestingly, its valuation against BTC dropped to a level last observed in June 2022, preceding a phase where ETH outperformed other assets.

The CoinDesk Computing Sector (CPU), an index focused on protocols dedicated to constructing and supporting Web3 infrastructure and distributed computing, witnessed a substantial 32% surge throughout October. This performance highlighted the growing interest in cryptocurrencies associated with technological advancements and infrastructural development. Among the alternative cryptocurrencies, Solana (SOL) emerged as a standout performer, achieving an impressive monthly return of over 70%.

This surge was attributed to increased network activity and a waning concern over FTX’s sell-off of tokens. October presented a significant resurgence in the cryptocurrency market, led by Bitcoin’s substantial rally, accompanied by a broader positive trend across various digital assets, ETF discussions, and notable sectoral performances. This resurgence underscores a promising outlook for the industry’s growth and further development.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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