Markets shake, but ‘Uptober’ lives on! – Analyst explains why

Key takeaways

Is ‘Uptober’ still on track despite the recent crash?

Key data shows that bullish momentum remains intact after the record liquidation.

What external events are supporting crypto market confidence?

New York City’s crypto office, potential Fed rate cuts, and easing trade tensions are helping.

The recent crash looked like it pummeled ‘Uptober’ to the ground, but it looks like that’s not the case.

With bullish patterns holding strong, key metrics flashing green, and New York City stepping up its crypto game with a major new initiative, the market’s mood is shifting from hopeful to confident.

Markets wobble, but bulls hold the line

The crypto market faced its biggest liquidation event in history last week. Yet surprisingly, it didn’t break.

Market analyst Scott Melker said in an X post,

“After the largest liquidation in crypto history, I expected October to be deep in the red. Somehow, it’s still holding on. Which honestly feels like a small miracle.”

Melker explained that the recent downturn wasn’t driven by fear or market sentiment, as seen during the 2017 and 2021 crashes. Instead, he described it as a “purely structural” shakeout, one that forced the market to pause and reassess risk.

He pointed to several developments that signal growing confidence and long-term commitment to the crypto space. Public companies are continuing to add Bitcoin to their balance sheets, showing institutional conviction. 

Luxembourg has made a historic move within the Eurozone, advancing crypto regulation. The CME is preparing to offer 24/7 crypto trading, reflecting rising demand for constant market access.

At the same time, stablecoin issuers are experiencing rapid growth, U.S. states are exploring ways to buy and hold Bitcoin, and the S&P is working on a dedicated crypto index. 

According to Melker, these are signs that the so-called “smart money” isn’t exiting the market, it’s actively building the infrastructure for the next phase of growth.

And now? The rebound in market cap, rising gold prices, and steady institutional interest indicate that the bulls aren’t backing down just yet.

The stars align

One of the biggest confidence boosts this month came from New York City’s bold move to create the nation’s first Office of Digital Assets and Blockchain under Executive Order 57.

Mayor Eric Adams, often dubbed the “Bitcoin Mayor,” says the initiative is about “embracing the technologies of tomorrow” while expanding financial access.

Serious institutions are leaning into crypto, not away from it.

Meanwhile, the scheduled Trump-Xi meeting on trade could ease investor anxiety, and talk of Fed rate cuts is lifting market sentiment. Add in gold’s rally and ongoing “debasement trade” narratives… ‘Uptober’ still has plenty of fuel.

‘Uptober’ is still alive!

October has delivered an average 20% gain for Bitcoin [BTC], and current data shows that optimism may not be misplaced.

The aggregated Open Interest was steady near $33.7 billion after the massive flush-out, so leverage is rebuilding in a healthier way. Meanwhile, BTC traded around $112K with support forming near the 100-day EMA, at press time.

Indicators like the RSI showed that Bitcoin wasn’t overheated, leaving room for upside. With historical seasonality on its side and market structure stabilizing, ‘Uptober’ may once again live up to its bullish reputation.

Perhaps it’s just taking a slower, steadier route this time.