To start with the positives the Crypto industry is awaiting another spectacular bull run with so many things coming in its way! Yes, Bitcoin’s Taproot upgrade is set for November and Ethereum merger can happen anytime soon. Cardano’s effort to hit the mainstream is in progress! Nonetheless, new projects entering the market show strong long-term potential.
But, why there are no signs of the bull season yet? Well, despite positives there are some key factors that are threatening crypto space! The ongoing SEC’s lawsuit against Ripple (XRP), lack of institutional investments and whale games are major concerns. So, when to expect the bull season? This article will give you a thorough insight.
Why October Could be a Challenging Month?
With the recent crypto market crash, the total market value now stands at $1.84 trillion, the value dropped by 4% in the last 24-hours. Listed out some challenges below which might act as barriers for the Bull season.
The recent metric from Cryptoquant indicated that the all exchange whale ratio is increasing. This revealed whales’ strategy to pump and dump the crypto space! At present, the increased selling pressure from whales, contributing to the current market crash.
Lack of Institutional Investment:
While the global wealth is worth $360 trillion, the Crypto industry holds less than 10% and is valued at only $1.8 trillion. And hence most of the institutions could be uncertain about the slowly swelling space. However, volatility in the space is a matter of concern yet smart traders and institutional investors can extract 10x profits with proper strategies and exit plans.
SEC’s Lawsuits and Other Regulatory Fears:
As the crypto space is gaining huge attention from mainstream investors and also from wall street, government agencies tend to screw up within small braces. This was much witnessed with the SEC which is attempting to prove Ripple guilt and also restricted Coinbase to roll out a new feature. On the other hand, the US Infrastructure Bill is also scheduled for a vote on 30 September. Therefore, if a reverse impact or crash is awaited for the space which could be carried forward in October too.
These Could Flip The Downtrend In October!
On-Chain Data Is Pretty Bullish
According to the recent on-chain data Unique addresses to exchange platforms are on the rise. The report says the Total value locked in Ethereum surged by 11.25% and Cardano’s TVL by 10.16% in the last 30 days. And Solana with huge gains over the last one month its TVL surged by 48.46%. This is a pretty good sign for the crypto space!
According to the historical data in the past few years, Bitcoin and other assets performed too good in the 4th quarter. The same trend seems to be manifesting now! Yes, in September 2017, the bitcoin price with a slight pullback started a study rise. BTC price waited for breakout till late October and the remaining two months were extremely bullish!
Bitcoin price is trading at $42,470.89 at the press time. Popular crypto analyst Jason Pizzino predicts that the asset could take its time to break out. He believes the bull run could be in the month of October and last for two months. And most of the other altcoins to are coming up with new innovative projects to the market. Therefore, quarter 4 could be pretty bullish with more altcoins also following the dominant crypto.
Additionally, speculations say SEC would approve Bitcoin ETFs and if the rumour held true, it would uplift the crypto space to new levels. However, bearish September is about to end very soon and a bullish start of Q4 could be seen as a resumption of the bull run.