The financial impasse in the United States remains unresolved, leading to an official government shutdown after seven years.
This situation has resulted in the suspension of key economic reports, including employment figures and GDP data. Additionally, hundreds of thousands of federal workers are now on furlough.
As the uncertainty deepens due to this shutdown, K33 Research highlights that October—a month typically buoyant following Asian holidays—has commenced under a cloud of doubt.
In their latest report, K33 Research emphasized that significant events have unfolded rapidly. These include China’s National Day Golden Week holiday lasting one week and Washington’s partial government closure.
The research firm suggests that these developments from Asia and the US might lead to reduced liquidity in cryptocurrency markets and delay crucial economic data releases at the start of October.
Analysts warn that low liquidity could heighten abnormal price swings within Bitcoin (BTC) and other cryptocurrencies.
K33 analysts observed that historically, when Asia takes a week-long break coinciding with early October, it often results in an economic slowdown there while negatively impacting Bitcoin’s performance.
K33’s data reveals Bitcoin tends to remain stable or decline during early October. Vetle Lunde from K33 remarked: “BTC generally performs flat during this period.”
Is October Favorable for Bitcoin?
When examining Bitcoin’s historical monthly trends over several years,
we notice declines predominantly occur in March,
August,
and September.
Conversely,
February,
July,
October
and November tend towards upward movements.
Reviewing BTC’s past twelve Octobers shows ten instances where prices rose against two declines.
While such patterns fuel investor optimism for this month,
it’s important noting those downturns aligned with broader bear markets affecting BTC.
Despite historical evidence suggesting bullishness for October,
Bitcoin recently climbed by 3% within 24 hours surpassing $116k mark yet ongoing uncertainties like US governmental issues make future predictions challenging.
*This content does not constitute investment advice.*