On Tuesday, October 12, most cryptocurrencies have weakened their prices as most are trading lower. Apart from Bitcoin, all other nine top cryptocurrencies are lower as of the time of writing at 09:00 Eastern Time. 

According to CoinMarketCap, Bitcoin is marginally up 1.77% currently trading at $57,546.41. The flagship cryptocurrency has surged its price to this level for the first time since May as market analysts anticipate that the crypto will retest the record highs reached in April this year – the $65,000 level.

Ether, the second-largest cryptocurrency by market capitalization and the coin associated with Ethereum blockchain, is lower 0.31% to $3,508.62.   

Cardano also sheds its price 4.36% to $2.12, Binance coin trades lower 2.34% to $407.23, XRP eases 4.92% to trade at $1.10, Solana plunges by 5.07% to $143.46, Polkadot was down 4.97% to $33.32, and Dogecoin slips 4.10% to $0.2258.

Generally, while the global cryptocurrency market capitalization losses 1% to stand at $2.30 trillion compared to the previous day, the total crypto market volume increased more than 7% to stand at $105.63 billion.

Some of the renowned analysts have come forward and explained the phenomena taking place in the cryptocurrency market.

Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, has explained the reasons why the prices of Bitcoin and Ethereum are set to see a rise.  

The analyst states that Bitcoin could be in for a surge during the fourth quarter due to several fundamental catalysts.  

He stated that many investors concerned about inflation and debt may be ready to put their faith in Bitcoin that gives the crypto its hard supply.

 “Relative to rising US debt and tensions over a potential default, Bitcoin may be entering a unique phase for a 4Q price rise as markets gain trust in the coding that defines the crypto’s supply. The debt-ceiling drama may work against managers that avoid allocations to Bitcoin,” McGlone said.

In other words, the price of Bitcoin could soar to a 5-month high, rising by over 30% in October. As economies across the globe started to reopen and fast-track their path back to recovery, Bitcoin’s rally indicates investor confidence in the global economy and its increasing position as an asset class.

Meanwhile, McGlone also highlighted that Ethereum also is likely to see a price surge. He stated that the EIP-1559 update appears to place pressure on the ETH supply, which in the long term could benefit the asset and improve its price.

“Ethereum’s floor just below $2,000 from May-July appears to have added a handle to $3,000 for 4Q, tilting risk versus reward toward further price appreciation. It’s likely still the early price discovery days for Ethereum,” McGlone highlighted.

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The prices of cryptocurrencies are mixed as the new week begins, with Bitcoin trading below the $48,000 level. The flagship cryptocurrency by market cap rose by about $2,500 within a matter of minutes on Friday, October 1 and was trading around $48,000 for most of the weekend, having spent more than a week before that in the lower $40,000s.

Today Monday, October 4, the global crypto market cap is $2.10 trillion, a 0.46% increase over the last day. The total cryptocurrency market volume over the last 24 hours is $99.33 billion, making a 15.37% decrease, according to CoinMarketCap.

The price of Bitcoin was trading at $47,612.31, down 0.70% during the intraday. Its dominance was 42.44%, an increase of 0.12% over the day.

Ether, the coin linked to Ethereum blockchain and the second-largest cryptocurrency, was trading down 1.82% at $3,347.29. Cardano price also met a decline of 4.41%, standing at $2.17, while Dogecoin was also down marginally to $0.2145. The performance of other crypto tokens, including XRP, Litecoin, Steller, is also mixed over the last 24 hours.

Cryptocurrency prices were hit on several fronts in September, including a tightening of regulatory oversights in China. On September 24, the crypto market across the globe was jittered by China’s imposing a blanket crackdown on the cryptocurrencies, and the Evergrande’s crises also contributed to a sharp decline across the crypto market. As a result, the entire crypto market lost streak in terms of monthly performance in September, which left Bitcoin trading around the lower $40,000 level.

However, Bitcoin is currently trading at $47,667.35, and other top cryptocurrencies are also showing renewed strength in their performances. Such a positive trend started on Friday, October, after the announcement in El Salvador that the nation began mining Bitcoin using volcano energy and Federal Reserve chairman Jerome Powell stating that the US has no plans to ban cryptocurrencies.

Some traders pointed to Mr. Powell’s remarks to the House Financial Services Committee on Thursday, September 30, as a catalyst that led to the current upbeat of the crypto prices. Other traders also recognized the beginning of the fourth quarter on Friday as another supportive factor when investors sometimes reset their portfolios.   

Ulrik Lykke, Founder of crypto/digital assets hedge fund ARK36, talked recently about the current performance of the cryptocurrencies and said that the digital asset market is benefitting both from the seasonality effect as well as generally positive market fundamentals.

“Historically, September has often been a red month for the digital asset markets. Conversely, Q4 has often seen strong performances and the expectation the trend will continue this year can become a self-fulfilling prophecy. It is possible that we will see new all-time highs in Q4, especially that on-chain data, particularly in the case of Bitcoin, seem to indicate a potential for a strong bull market continuation,” Lykke stated.

Lykke further mentioned that the markets also took note of how little China’s reinforced crackdown on digital assets affected Bitcoin’s price action, indicating that investors have robust and long-term confidence in BTC’s strength at the moment.

Meanwhile, Ruud Feltkamp, CEO at crypto trading bot Cryptohopper, also stated that Bitcoin performs historically well in October and poorly in September.

“At Cryptohopper, we’re preparing for the huge inflow of traders due to the upcoming bull-market that we expect. My prediction is that we’re going to see a new ATH this month, or at the very least near the current ATH. After which, we enter the final phase of this bull cycle,” Feltkamp illustrated.

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