September was an eventful month for the crypto-market, to say the least, with the month seeing a serious crypto-exchange hack amongst a bunch of different developments. Nonetheless, regardless of the quarter ending because it did, Bitcoin did witness its second-best Q3 shut in historical past.
$150M drained from KuCoin: BTC down 1%
BitMEX charged by DOJ, CTO arrested: BTC down 2%
Trump assessments constructive for COVID: BTC down 1%
Bullish tweet from CZ: BTC down 2%
Solar explodes, obliterates all life on earth: BTC down 1%
— Zack Voell (@zackvoell) October 2, 2020
In truth, even current developments within the month of October just like the CFTC charging BitMEX have executed little to considerably have an effect on the worth of Bitcoin. Whereas the cryptocurrency did fall in its speedy aftermath, it quickly recovered and was buying and selling at round $10,500, on the time of writing. This has contributed to many rising more and more bullish about Bitcoin and the bigger crypto-market.
Nonetheless, there could also be a couple of short-term bearish catalysts to be conscious of within the month of October, a subject just lately touched upon by Lark Davis in a video.
The primary potential catalyst right here is the Mt. Gox Rehabilitation plan that’s scheduled to lastly happen on 15 October. This occasion may see 140,000 BTC distributed to Mt. Gox collectors. Whereas a majority of them may very well be HODLers on this market, even when half of those individuals promote, it could gas a promoting stress price 70,000 BTC in the marketplace, all of sudden.
The second catalyst that would contribute to some quantity of disarray is Venezuela’s current transfer to evade U.S sanctions utilizing cryptocurrencies. Such a step may encourage U.S regulators to double down on rules within the crypto-space, whereas additionally strictly imposing KYC compliance to verify there isn’t a motion of crypto-funds between the 2 international locations. An announcement regarding rules would undoubtedly have an effect on the market to a sure diploma, with the likelihood of this taking place very doubtless.
For the reason that correlation between Bitcoin and fairness markets has remained largely constructive off-late, non-native crypto-market occasions might influence crypto-markets extra considerably than earlier than.
Think about this – That is an election 12 months, and October has been the inventory market’s weakest month, in response to historic knowledge. Within the occasion that the election outcomes find yourself being contested, it’s doubtless that the markets will likely be negatively impacted. Furthermore, the brand new invoice on the fiscal stimulus package deal, which is more likely to be handed in October, might get delayed once more, a improvement that would even have a damaging influence on the crypto-market.