As the clock ticks into the last quarter of the year, traders begin to yearn for better profits. Fortunately for crypto investors, many believe in the powerful legend of ‘uptober’, the month when their investments will rise more than ever before.
The concept of uptober stems from the fact that bitcoin has had a ‘green’ October nine out of the past ten years, said Iliya Kalchev, an analyst at the crypto platform Nexo. The analyst highlighted 2017 and 2021 as particularly good years, with bitcoin rising by 50% and 40%, respectively.
Analysts at investment bank Compass Point explained in a report that these gains in October have historically been supported by weakness in the market in September, which made all gains appear larger.
However, we did not quite get the ‘red September’ that was expected. While some cryptocurrencies are indeed in decline, the Compass Point report noted that the price of bitcoin rose by nearly five percent in September of this year.
Uptober illustrates how seasonal financial markets can be, with similar phenomena such as ‘Santa Claus rally’.
As a result, uptober has become a cultural meme deeply embedded in crypto folklore. Scanning social media as September comes to a close, you will find countless traders praying for October to answer their prayers for profit.
– We have been through enough pain, we need uptober – wrote crypto influencer The DeFi Edge on X.
However, some analysts warn that much of this is just social media hype and that institutions are paying attention to much more than just a meme.
– Retail investors often cite seasonal memes like uptober on social media as part of the market’s cultural identity. These narratives can influence short-term sentiment and leveraged trading behavior – said Jake Kennis, senior research analyst at Nansen.
– However, it is more likely that professional traders base their decisions on fundamentals, macro conditions, liquidity, and technical setups, rather than calendar-based memes – he added.
