Bitcoin Soars 27% in October Amid ETF Excitement: Is $40,000 on the Horizon?
The crypto market witnessed an electrifying surge in October, encompassing remarkable gains across all CoinDesk sector indexes, ranging from 7% to an impressive 32%.
The month brought a thrilling turnaround in cryptocurrency prices, spearheaded by the monumental rise of Bitcoin (BTC). Surging over 27%, Bitcoin celebrated its most robust monthly rally since January, soaring to a staggering 17-month high of $35,000.
The anticipation of Bitcoin ETF approvals in the United States fuelled this surge, propelling Bitcoin from its $27,000 range during the first half of October. As the month drew to a close, Bitcoin lingered just above $34,000, poised for potential market ripples following the Federal Reserve's upcoming interest rate decision.
The exuberance spread across the wider crypto market, witnessing an exceptional 19% leap in the overall cryptocurrency market capitalisation, reaching a substantial $1.255 trillion, as reported by TradingView data. This surge marked the most significant increase in crypto wealth since the 33% surge recorded in January.
The potential introduction of ETFs stands as a pivotal moment for Bitcoin. These investment vehicles would offer a more accessible avenue for the average investor compared to the cryptocurrency itself or existing Bitcoin investment products like the Grayscale Bitcoin Trust (GBTC), which currently boasts $21 billion in assets under management.
Despite the U.S. Securities and Exchange Commission's rejection of GBTC's conversion into an ETF, recent legal proceedings have significantly raised the likelihood of approval for this transition, potentially opening doors for ETF applications from major players like BlackRock, the world's largest asset manager.
While October marked a widespread crypto surge, not all sectors enjoyed equal benefits. The CoinDesk DeFi Index (DCF), encompassing tokens in the decentralised finance sector, witnessed a modest 7% gain. However, prominent DeFi tokens such as Curve (CRV), maker (MKR), Uniswap (UNI), and Compound (COMP) faced declines ranging between 3% and 7%.
Ethereum's ether (ETH) experienced a modest 7% gain, while its valuation against BTC mirrored levels seen back in June 2022, preceding ETH's notable outperformance.
Diving into Web3 infrastructure and distributed computing, index tracking protocols in this domain surged nearly 32% during October, as per CoinDesk data.
In the world of alternative cryptocurrencies, Solana (SOL) emerged as a standout performer, boasting over a 70% return over the month. This surge followed heightened network activity and subsiding concerns regarding token sales.
Despite its phenomenal performance, Bitcoin shows no signs of slowing down, with analysts predicting further potential. Market strategist Joel Kruger from institutional crypto exchange LMAX Group highlighted this momentum, suggesting a prospective measured move objective in the $40,000 range in the weeks ahead.