Bitcoin Enters October Amid Thin Liquidity and War Tensions
Bitcoin (BTC) is facing four significant challenges as it enters October. The largest cryptocurrency has historically performed well during this month, closing higher in ten of the last thirteen Octobers with a median gain of 12.73%.
Analyst Darkfost notes that thin liquidity and weak demand are major concerns for Bitcoin's price action. The stablecoin market cap has lost $14 billion since May, indicating sizable outflows from the space.
Despite this, stablecoin supply has slowly refilled to around $270 billion, up by $4 billion since September. However, Darkfost believes that this rebound is too timid to push Bitcoin towards new highs.
The Iran war and its potential impact on oil prices are also having a significant effect on the cryptocurrency market. A tanker strike in the Strait of Hormuz saw Bitcoin's price rally towards $87,000 before erasing gains due to the conflict.