The Crypto Markets Are Licking Their Wounds

Bitcoin Suffers Its Worst October in Over a Decade

The crypto market has been climbing since Friday, reaching $2.62T, up from $2.55T on Friday. This recovery can be attributed to a slight increase in risk appetite over the weekend, driven by a weaker dollar and oil prices, as well as attempts at a rebound in equities. At the same time, the cryptocurrency market is merely licking its wounds, having so far failed to recoup even Friday’s losses. Among the biggest movers over the past 24 hours, Official Trump (+3.1%), Tron (+1.7%) and Ethereum (+1.1%) stood out with gains, while the biggest fallers were Basic Attention Token (-7.1%), Near Protocol (-5.8%) and Theta Network (-3.9%).

Bitcoin fell by 7.5% over October to $77.4K, defying the seasonal trends of one of the year’s best months for the second year running. The decline, following three months of growth, was the sharpest for this month since 2014. From a seasonal perspective, November is generally considered a fairly successful month for BTC, with gains in nine of the last 15 years. The average gain was 24%, while the average decline was 16.8%.

On Monday, as trading in Europe began, BTC traded just above $78K following a somewhat tentative attempt to breach $79K earlier today. The leading cryptocurrency found support in roughly the same area as in mid-September, but the technical picture still looks bearish: Bitcoin fell sharply on 29 October when it touched the 50-day moving average from below, and has been trading within a downward channel for almost a month.

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According to SoSoValue, outflows from US spot Bitcoin ETFs totaled $202.6 million over the week, resuming after a week of inflows. Over the course of October, investors withdrew $515 million from US Bitcoin ETFs.

Outflows from spot Ethereum ETFs in the US have now continued for five consecutive weeks, reaching $431.5 million last week. Investors withdrew a record $1.61 billion from US Ethereum ETFs in October.

Standard Chartered believes the Binance hack could accelerate traders’ shift to decentralised exchanges (DEXs) and expects cryptocurrencies to fall further. The market will only stabilise once the circumstances of the attack and the fate of the frozen assets have been clarified.

BlackRock’s Bitcoin ETF, the world’s largest, which manages 815,000 BTC, could become the next target for North Korean hackers, according to OneKey. The US crypto exchange Coinbase acts as the fund’s primary custodian.

Chainalysis, a company specialising in tracking crypto transactions, has reported a breach of its internal systems. An unknown attacker gained access to the names, email addresses and other details of the platform’s customers.

Strategy reported a net profit of $19.53 billion for the third quarter, compared with $2.79 billion a year earlier. The main factor was an unrealised gain of $20.91 billion from the revaluation of its cryptocurrency reserves.

The FxPro Analyst Team