October’s bullish sentiment quickly eroded, as "Uptober" has been crushed by a $200 billion market crash, pushing traders into "Selltober" panic mode.

Uptober Hype Turns into Selltober Panic

As markets keep falling, the bullish atmosphere around cryptocurrencies in October—which has been nicknamed "Uptober" on social media—has been fading.

Onchain analytics vendor Santiment observed a sharp drop in mentions of Uptober from the start of the month in an X post from October 4th.

Traders Pessimistic as Market Crashes

Traders have been pessimistic on the notion that this month could be an "automatic money printer for crypto," the report said. Memes and references to "Selltober" and "Octobear" have taken center stage instead.

The founder of Santiment, Maksim Balashevich, suggests that a temporary upturn is possible due to the current pessimism.

Experts Predict Possible Rebound Amid Chaos

“Uptober excitement wanes as the market dips, which does open the door for a rebound. Whether the bigger downtrend is over remains to be seen.”

The seasoned trader known as "Ash Crypto" informed his 1.1 million X followers on October 3 that "BTC could drop a little more so that people will stop believing in Uptober" before continuing:

"Once bears start getting excited and calling for $40k to $45k, BTC will pump hard."

On October 4th, experts at 10x Research wrote to investors, saying that many crypto bulls had been taken unawares since March, anticipating the bull run to persist.

What they said was that technical signs show the rally was too long. They also said, "It now seems that sell-offs from early adopters (OGs) and large token unlocks have been driving prices down despite strong inflows from stablecoins, Bitcoin Spot ETFs, and increased futures leverage."

$200 Billion Wiped Off Crypto Market

Cointelegraph notes that since October 1st, cryptocurrency markets have lost around $200 billion, or almost 8% of their value. According to CoinGecko, total capitalization fell 1.9% to $2.2 trillion as of Oct. 3, the same level it was at in mid-September.

By the time this article went live, Bitcoin had recovered somewhat from a brief plunge below $60,000 on October 3 and was back above $61,000.

Historical Uptober Performance Offers Hope

Nevertheless, October has a history of good price activity for Bitcoin, earning the term for nine of the past eleven years.

In each of the last five Octobers, including years with bear markets, there have been gains of 5.5% to 40% for the month.

However, if past cycles provide any indication, market gains typically occur around mid-October.

Bitcoin's price dropped by over 7% in the first half of October 2023, from $28,500 on October 2 to $26,650 on October 13. By the end of the month, it had jumped about 30%, reaching $34,500.

Since reaching a month-to-date high of $64,000 on October 1st, Bitcoin has endured a 4.7% decline.