October Momentum: Will Bitcoin Deliver Again?

Bitcoin has historically performed well in October, with 10 out of the past 13 years seeing gains. However, last year was an exception when a trade dispute between the US and China triggered a sharp risk-off move, causing Bitcoin to fall by around 4%.

This year's setup is different from last year's, with Bitcoin having climbed about 25% in August and adding around 9% in September. ETF inflows have accelerated, and short covering and improving liquidity have quickened the reversal, leading to a rally that extends beyond Bitcoin.

However, momentum can work both ways, and the market is now more vulnerable to leverage-driven corrections. The quicker prices climb, the higher the risk of a correction erasing gains made in October.