Crypto Market Surges in Early October
The cryptocurrency market kicked off October on a strong note, with Bitcoin surpassing $121,000 and Ethereum reclaiming the $4,500 zone. Weekly gains now stand at more than 10% for Bitcoin and over 15% for Ethereum, according to TradingView data.
Other major digital assets also rallied, with BNB posting a 6% daily increase, helping lift the broader top-10 market cap index.
Short Sellers Face $385M in Liquidations
The rally triggered massive liquidations across derivatives markets. Futures contracts tied to crypto assets saw more than $385 million in positions wiped out within 24 hours, predominantly short bets, data from CoinGlass shows.
Market sentiment is also shifting quickly. The Crypto Fear & Greed Index jumped by 15 points in a single day, signaling growing investor confidence and a stronger appetite for risk.
Macro Catalyst: U.S. Government Shutdown
Analysts point to the recent U.S. government shutdown as a key factor behind the price action. The shutdown, which began on October 1, initially weighed on financial markets, pushing both stocks and cryptocurrencies lower. However, assets soon rebounded as investors reassessed the long-term implications.
According to John Haar, Managing Director at Swan Bitcoin, the macro backdrop is driving Bitcoin’s transformation into a strategic allocation asset:
“With record global debt and mounting pressure on fiat currencies, Bitcoin is increasingly viewed as a liquid, non-sovereign reserve asset. We’re seeing a shift from speculative trades toward long-term strategic positioning, which should support higher price levels.”
Stocks and Gold Join the Rally
The bullish momentum wasn’t limited to digital assets. The S&P 500 gained 1.5% on the week, while gold rose 3%. At the same time, yields on U.S. Treasury bills fell to their lowest point since October 2022, reflecting a flight to safety amid macroeconomic uncertainty.
Seasonal Tailwinds for Crypto
Historically, October has been a favorable month for cryptocurrencies, and this year appears no different. With Bitcoin breaking key psychological levels and Ethereum testing resistance, market participants are eyeing further upside—provided macro conditions remain supportive.
