Bitcoin sees early October gains as it rises above $28,000

The cryptocurrency market kicked off October in the green, with bitcoin rising above the $28,000 mark and ether briefly breaking above the $1,700 mark, for the first time since late August.

Bitcoin climbed around 3% to hover around $28,000 at 1:00 p.m. ET, according to CoinGecko. The world’s largest digital asset by market capitalization seemed at first glance to be correlating with rising tech stocks. The tech-heavy Nasdaq and the S&P 500 gained on Monday, as investors digested the news of a last-minute deal that averted a partial U.S. government shutdown.

However, data from The Block showed that since September 18, bitcoin’s correlation metric has not exceeded 0.2 or -0.2, indicating essentially no correlation between the digital asset and major equity indices.

the block correlationThe Block

BTC Pearson Correlation (The Block’s Data Dashboard)

Approval of multiple ether futures ETFs

Ether gained 0.2% in the past 24 hours to change hands at $1,684, at 1:00 p.m. ET. The second largest digital asset by market capitalization was spurred on by investor anticipation following the introduction of several ether futures ETFs. Products offered by VanEck, Valkyrie, ProShares, and Bitwise became available to investors on Monday. These are the first ETFs to be established based on ether futures, arriving nearly two years after the debut of the first bitcoin futures ETF.

Haven1 Foundation Director Akash Mahendra forecasted that the Security & Exchange Commission’s approval will usher in “a new era where Ethereum becomes increasingly mainstream.”

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“This landmark decision by the SEC not only showcases Ethereum’s rising prominence but also signals a profound shift in the regulatory landscape,” he added in a note sent to The Block.

Crypto markets in October

Yield App CIO Lucas Kiely said that October is typically a good month for the cryptocurrency market.

“It is dubbed ‘uptober’ by market insiders, and only twice since 2013 has bitcoin closed at a loss in October,” Kiely added in a note sent to The Block. But he added, “It is likely a little too early to get excited by these current price movements, it is unlikely to be the beginning of a significant rally without any other catalysts to drive it.”

Additionally, he pointed out that investors will be reminded of crypto’s vulnerabilities as the “Sam Bankman-Fried trial will soon make its way into mainstream headlines.”

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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