【特集】Crypto Market Rallies as Bitcoin Dominance Returns

Uptober sees the highest daily volume

The crypto market is experiencing a rally in October, commonly known as "Uptober," with Bitcoin and crypto market volumes reaching new highs. October has historically been a positive month for crypto returns, and the volume on October 15 recorded the largest daily trading volume for the entire month. This strong volume is seen as a positive sign and indicates that October is statistically one of the strongest months for Bitcoin price gains.

Bitcoin dominance returns

Bitcoin is regaining dominance in the crypto market, surpassing 50% of the total market cap. This is the first time Bitcoin has had such dominance since June 28. Typically, when Bitcoin dominance plateaus, investors turn to altcoins and other cryptocurrencies. This increase in dominance is in line with Bitcoin models that predict a potential price increase to $130,000 after the BTC halving event in 2024.

Crypto liquidations drive the rally

The recent crypto market rally has resulted in a wave of short position liquidations across the market, totaling over $64 million in 24 hours. Bitcoin short liquidations led the way, with the largest single liquidation of $2.53 million on the Binance exchange. Despite this, the futures market remains skewed towards short positions. However, this could potentially lead to a short squeeze and further price upside.

Macro factors benefit the crypto market

Despite regulatory challenges and the Securities and Exchange Commission's refusal to approve a Bitcoin ETF, large institutions continue to show interest in the crypto space. VanEck and Bitwise recently launched Ethereum ETFs, adding to the growing institutional interest. This increasing interest has positively impacted market sentiment, as seen in the improved Bitcoin Fear & Greed Index.

Overall, while the positive price action in October is providing a short-term boost to crypto prices, the market's reaction to new enforcement actions or economic downturns will determine its long-term direction. Investors should conduct their research and carefully consider the risks before making any investment or trading decisions.