- Bitcoin has experienced an unusually calm period, with price movements less than 5% for 34 straight sessions
- This calm period goes against the historical trend of October being a bullish month for cryptocurrencies, dubbed “Uptober”
- Traders are awaiting the outcome of the upcoming US election, attributing the lack of volatility to the absence of clear drivers
Bitcoin has settled into an unusually calm period as traders remain on the sidelines awaiting the outcome of the upcoming US presidential election.
Bitcoin’s Historic Price Stability
The original cryptocurrency has moved less than 5% for 34 straight sessions through yesterday, on par with the longest such streak of calm in a year according to data compiled by Bloomberg. The doldrums in price movement has disappointed many in the crypto community since the asset class has historically performed well in October, earning the nickname “Uptober”.
Drivers of Bitcoin’s Current Stagnation
Many attribute the current stagnation to a lack of clear drivers with attention focused on the upcoming US presidential election. With the outcome uncertain, traders appear hesitant to take a directional bet on the cryptocurrency.
Historical October Strength
October has seen above-average returns for Bitcoin in prior years. According to Bloomberg data, the cryptocurrency has averaged a 15% gain in October over the past decade versus an average monthly return of 5%. Some posit this strength is connected to growing optimism around wider adoption as the holiday shopping season approaches.
Outlook Remains Uncertain
It remains to be seen whether Bitcoin will shake off its recent lethargy. While crypto bulls hope the asset’s historical October strength returns, bears argue the macroeconomic and geopolitical uncertainties could keep prices subdued. The cryptocurrency may continue to take its cues from the broader risk asset complex.
