Bitcoin launched month October in the red, deviating from what many investors expected leading to the month. Bitcoin, which had previously seen significant price increases, began to face setbacks in delayed September, leading to the first 24 hours of October.

The first 24 hours of October were full of outflows from the cryptocurrency industry. Bitcoin in particular fell below $61,000according to Coinmarketcap when tensions began grow in the Middle East. Given this decline, questions have arisen about Bitcoin’s prospects for the rest of the month.

Current Bitcoin price action

The hype that began in October centered on expectations that Bitcoin would extend its bullish momentum and break through key resistance levels. According to price data, Bitcoin ended September 7.11% above where it started, even reaching a peak above $66,000 at one point.

However, at the time of writing, Bitcoin is down almost 7% from its September peak. Moreover, Coinmarketcap data shows that Bitcoin has fallen by 3.6% in the last 24 hours. The rapid deterioration of the economic situation changed the market mood, and the once hopeful outlook gave way to fear and uncertainty. The Fear and Greed Index, which measures market emotion and risk appetite, is currently at 39 and signals “fear.” Cryptocurrency investors seem to have panicked now, with cryptocurrency analyst Kaleo even pointing it out on social media platform X.

After five minutes of scrolling through the timeline, you’d think we’d never see the green candle again

— KALEO (@CryptoKaleo) October 1, 2024

Bitcoin’s price action is very sensitive to world events. It is worth noting that the recent decline in Bitcoin price can be attributed to geopolitical conflicts in the Middle East. Its recent performance amid geopolitical turmoil calls into question its role as a safe-haven asset.

Spot Bitcoin ETFs, which are designed to support Bitcoin’s spot price, also ended eight consecutive days of inflows on October 1 with massive outflows, most likely in response to tensions in the Middle East. According to Spot Bitcoin ETF flow data from Farside Investors, institutional investors pulled out $246.2 million yesterday.

Is Uptober a myth?

The hopeful outlook appears to have quickly faded among many crypto investors. However, many participants still maintain a bullish outlook, especially considering there is still a long way to go before the end of the month.

History shows most often that October has always been a positive month for Bitcoin. Most importantly, positive results occurred mainly in the second half of the month. Given that the month is just starting, it makes more sense to wait and see what the price action is like for the rest of the week before making any conclusions about Uptober.

Amid these tensions, Bitcoin’s potential role as a gold-like secure asset may raise among market participants during the rest of the month and beyond.

Featured image created with Dall.E, chart from Tradingview.com