Bitcoin starts October on a high, surpassing $28,000

Bitcoin is trading up 4.5% this Monday (2) and starts the month of October on a high. Other cryptocurrencies are following this move, with an emphasis on Ethereum, whose first futures ETF was launched in the US.

Traders who bet on the fall of cryptocurrencies got R$450 million liquidated. Most of these liquidations took place in the early evening of this Sunday (1), while a large green candle was forming on the Bitcoin charts.

While September is usually a bad month for Bitcoin, October is the most favorable period for the cryptocurrency. Over the past 10 years, BTC has seen a monthly increase in the 8 months of October, showing good gains.

Ethereum futures ETFs begin trading in the US

While there is no explanation for Bitcoin’s rise at the start of the month, the launch of Ethereum futures ETFs in the US could be the cause of the bullish market sentiment.

One of the highlights is VanEck’s Ethereum Strategy ETF (EFUT), a product focused entirely on ETH. Other managers, such as Bitwise, ProShares and Valkyrie, have also launched similar ETFs.

“TRADE NOW: The VanEck Ethereum Strategy ETF, $EFUT. Transformation happens when enough of us are ready.”

Although this type of futures ETF already exists for Bitcoin, it is possible that their approval signals that the SEC is ready to approve Bitcoin spot ETFs in the US. Last week, the Commission postponed its decision at the request of BlackRock and other Wall Street giants.

Finally, Grayscale announced on Monday (2) that it wants to convert its R$25 billion Ethereum fund, ETHE, into a spot ETF. Currently, the fund owns 2.5% of the entire circulating supply of ETH.

At the time of writing, Ethereum is trading at $1,725, up 2.2% per day.

Traders were liquidated as Bitcoin started October on a high

Data from Coinglass shows that traders who bet on the fall of cryptocurrencies lost R$450 million. Most of the liquidations occurred early evening on Sunday, when Bitcoin rose above $28,000.

Short positions faced major liquidations this Sunday (1st).  Source: Coinglass.
Short positions faced major liquidations this Sunday (1st). Source: Coinglass.

Other data from Coinglass shows that October is the best month for Bitcoin. While the cryptocurrency rose 60% in the month of October 2013, it also saw increases of 33%, 47% and 39% in 2015, 2017 and 2021 respectively over the same period.

While past data is not an indicator of the future, the month is clearly dominated by bulls. Given the excellent performance, this period was nicknamed “Green October” by investors.

Bitcoin starts October with a strong increase.  Source: Coinglass.
Bitcoin starts October with a strong increase. Source: Coinglass.

Finally, the possible approval of a spot Bitcoin ETF in the US is still the top news that investors are expecting. Be that as it may, after the SEC’s postponement, all indications are that this should not happen until next year.

Source: Live Coins

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