Welcome to Uptober!

Bitcoin witnessed a surge in value just hours after the United States Congress delayed the potential government shutdown until mid-November, leading to BTC’s price registering the largest green candle since late August. This development also shines a light on the possibility of the U.S. Securities and Exchange Commission (SEC) adhering to its Bitcoin ETF deadlines in the ensuing months.

Last week was marked by the SEC postponing its verdict on numerous Bitcoin ETF proposals, including the one from BlackRock. Analysts project that the Bitcoin market could see an influx of $600 billion in capital if a spot Bitcoin ETF is launched.

The narrative of Bitcoin “Uptober” takes flight as this surge commenced on the first day of what has historically been one of the most bullish months for the cryptocurrency. Since 2012, Bitcoin’s price has, on average, soared by 20.82% in the month of October, with the only exceptions being 2014 and 2018.

The rise in Bitcoin’s price also coincided with significant short liquidations in the derivatives market. Over the last 24 hours, short liquidations amounting to nearly $43 million were witnessed, as opposed to the liquidation of long positions, which stood at about $6 million. This pattern mirrors the events of September 12-13, which set the stage for a 5.5% rally — escalating the price from approximately $25,830 to over $27,200 by September 19.

As short sellers liquidated positions by purchasing the underlying asset, the influx of new buyers coupled with the short liquidations further propelled the BTC/USD pair upwards.

This fortuitous confluence of events — the postponement of the US government shutdown and the historical performance trend of Bitcoin in October — has ignited a positive market sentiment. Furthermore, the anticipation surrounding the SEC’s decisions on Bitcoin ETF applications adds another layer of optimism for potential market growth, marking a promising onset of “Uptober” for Bitcoin enthusiasts and investors.