As we approach October, the cryptocurrency community is eagerly anticipating this historically favorable month. In 2021, the crypto market embarked on a ‘double peak’ rally during October, and by November, numerous assets had achieved record highs. Recently, market sentiment has been on the rise, and analysts anticipate a shift in favor of the bulls. Therefore, in this piece, we will assess the leading cryptocurrency assets that warrant attention in October 2023.
October’s Crypto Standouts: Two Tokens to Monitor
Bitcoin
Since 2013, Bitcoin has registered negative returns for investors in only two Octobers, specifically in 2018 and 2014. Aside from these isolated occurrences, investors have typically enjoyed profits during this month. Presently, there are three critical indicators suggesting that Bitcoin may have emerged from its bearish trend. The Reserve Risk for Bitcoin is presently at historically low levels. To provide some context, when market prices are low and the reserve risk is low, it indicates a high level of confidence among holders.
Historically, when this metric has lingered around the green band, the price has eventually rebounded. Moreover, the MVRV ratio for Bitcoin currently indicates that the market valuation of the asset is significantly lower than its realized value. It has consistently remained within levels that have historically acted as accumulation zones.
Additionally, it’s noteworthy that the number of dormant BTCs (Bitcoins) held for at least one year has reached an all-time high (ATH). To decipher the implications, a recent Messari thread on X (formerly Twitter) highlighted,
“This trend suggests that a large percentage of the Bitcoin supply is held by long-term holders who hold the conviction that Bitcoin’s price will eventually rebound.”
Considering that the potential bottom has probably already occurred, it’s reasonable to anticipate increased activity in Bitcoin over the next month. Ethereum is presently closely correlated with BTC, boasting a strong 0.9 correlation. Consequently, both of these leading digital assets could jointly revitalize a bullish outlook as we enter the fourth quarter of 2023.
Shiba Inu & Co.
In addition to monitoring the most prominent cryptocurrency assets, investors and traders may also consider keeping an eye on meme coins such as Pepe Coin and Shiba Inu. Pepe Coin, which made its debut in the second quarter of this year, currently lacks historical patterns to follow in the fourth quarter. Lookonchain data indicates that numerous smart wallet addresses have initiated transactions involving Pepe Coin. Notably, an investor who previously realized a 38,860x gain on Pepe recently reinvested $645,000 in this asset. Another tweet from the same on-chain data tracking platform also disclosed,
“2 fresh wallets created 3 hrs ago spent a total of $801K to buy 1.08T PEPE.“
Experienced and astute investors typically boast a track record of success. Therefore, their recent surge in accumulating Pepe Coins could serve as an early indicator of how Pepe Coins might perform in October. Meanwhile, members of the Shiba Inu community have been eagerly anticipating October as well. In 2021, SHIB reached its all-time high during this month, resulting in an impressive 830.14% overall increase in value. In contrast, September and November of 2022 were marked by a bearish trend. However, SHIB showed a positive performance in October, with a 10% rally.
Recently, SHIB has been accumulating liquidity at around the $0.000007 level. Given these dynamics, the token might follow the historical October trend in 2023 and potentially experience a recovery, provided the market conditions are favorable.