Have you ever wondered why October is the prime month for crypto market. The crypto community calls it ‘Uptober’ and it’s more than just a meme. Here is a simple explanation about this fascinating market trend.
The month of October can be compared to the start of the last leg of the race for the year. It marks the beginning of the fourth quarter - the last quarter of the year - and this is where the timing plays a very important role. The thing is: money managers and investment firms that manage large sums of money are in a race against time, and October is when they come to the conclusion that they have to step up their pace.
Here’s the thing, say you’re a fund manager and the competitors are beating you senseless with higher returns. Your clients are looking on, contrasting you with the other managers. What is your next step? You look for assets that will allow you to recover that lost ground fast. That's where BTC comes in.
BTC is a brilliant idea for these money managers. It's just like a sports car in a world of normal vehicles - it goes fast, can make a very big profit, and you can sell or buy it without any problems. When traditional investments such as the S&P 500 and gold are successful, Bitcoin becomes even more tempting as a turbo-boost for portfolios.
The arrangement of this year is very peculiar indeed. Fear gripped many investors at the beginning of the year and they refused to get involved. Now they're in a difficult position; they have to get there and do it quickly. It's not just about wanting better returns; for most of fund managers, their jobs are on the line.
Moreover, what accentuates this phenomenon is the change in the crypto market. We used to observe the crypto seasonal patterns, but now all that doesn't matter. Hence, this Q4 influx of traditional finance cash has become the dominant factor. It is as if the crypto market has matured and is now competing with established players.
The best part is that this is not just some random FOMO (Fear Of Missing Out) thing. It is a calculated necessity. When it is a matter of big money needing to turnaround their performance and catching up, what they need is something that will have a significant impact on the results. Bitcoin, which has been through a lot of dramatic price changes, is just the perfect one to do that.
So if you hear someone talking about "Uptober" the next time, it really won't be just a cute crypto community nickname that you remember. It will be a sign of how the year-end rush of traditional finance has become a perfect match for the explosive growth potential of crypto.
Learning these patterns doesn't just make you smarter it actually helps you to make better and more informed decisions about your investments. The big players certainly have their reasons for going with October, and now you are aware of them.
Posted Using INLEO