Golden October for Cryptocurrencies? This could continue with Bitcoin, Ether & Co

taketonews

• Recent months marked by weakening cryptocurrencies
• October could bring trend reversal
• Bitcoin should benefit from falling US dollar index

The past few months have not been easy for crypto hodlers. Cyberforex has also taken a hit as the macroeconomic environment has weakened. In September, the bearish attitude increased again. Thus, Santiment data showing the Be[In]Crypto shows that mentions of “sell”, “sold” or “bearish” have increased significantly over the past few weeks.

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The downward trend could now change in October, as the month is often referred to as “Uptober” in the crypto scene. Crypto expert Justin Bennett uses the USD index (DXY) as one reason for his bullish Bitcoin forecast. It recently fell again after rising to a 20-year high in September. In uncertain times, investors often rush to the supposedly safe greenback, which led to the sharp rise in prices.

In recent weeks, the US dollar index has always represented a counter-image to Bitcoin. However, this has recently changed, argues Bennett via Twitter: “The DXY not only confirmed a bearish deviation from a 10-month level today, but also closed again in this range from August. Bullish for stocks and crypto.”

He was confident that as long as Bitcoin holds the $18,700 mark, the original cyber currency should go up.

If Bitcoin manages to pick up again, other altcoins should also be driven up, including the second-largest cryptocurrency by market capitalization, Ethereum.

Ethereum plummeting after the merge

The eagerly awaited technological upgrade from the Proof of Work to the Proof of Stake process took place here in September, which, however, was not able to help the price of the cryptocurrency to jump up as expected. The background to this price drop could be stronger regulation by the US Federal Reserve, which has stated in the past that PoS cryptocurrencies are securities, which in turn are subject to stricter regulation than assets in the “commodities” category. It remains questionable whether there will be a Golden October for the cyber currency this year, but Business2Community could imagine that if inflation is successfully combated and the stock markets recover as a result, Ethereum should also experience a tailwind, which will drive the price to over 1,500 US dollars could.

Solana scores with good news

According to The Motley Fool, it’s also worth keeping an eye on cryptocurrency Solana in October, which has already garnered a lot of attention this year and is fast becoming a staunch Ethereum rival in the NFT market. Solana has unveiled several major innovations in recent times, including the announcement of the crypto phone Saga, which is set to launch in 2023. The positive developments are also reflected in the market. While Ethereum lost more than 22 percent over the last 30 days, the SOL token was down just 4.8 percent. Should more updates be announced this month, it should help the price further.

Ripple fueled by expected settlement in SEC dispute

Ripple cryptocurrency is also worth a look in October, according to The Motley Fool. This could be good news related to the SEC investigation. There are rumors on the market that an agreement will soon be reached, which could lead to a price jump. As the news portal reports, XRP payments and transfers have increased a whopping 45 percent to $ 0.48 in the last 30 days. However, caution is still required. It can also not be ruled out that the cryptocurrency is overbought and that the good legal reports are already priced in.

Bottom Line: There are a few indicators that suggest cryptocurrencies could rally again in October, especially if the US dollar continues to lose strength. Nevertheless, the term “crypto winter” continues to hang over cyber currencies like the sword of Damocles. So whether the digital currencies actually manage to rise again will also depend on whether they manage to break away from this negative narrative.

Editorial office finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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