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This crypto pattern has become increasingly apparent over the past few years, particularly in September and October. So much so that these two months have since been renamed ‘Rektember’ and ‘Uptober’ in the cryptosphere. Follow along as we explain the logic behind these monikers and why they offer some hope amid the bitter crypto winter we find ourselves in.
Bitcoin and other cryptocurrencies are said to be cyclical in nature. This means that a price rally is usually followed by a sell, which is then followed by another rally, and the process repeats over and over again.
It’s a trend that has become increasingly apparent over the past few years, especially in September and October. So much so that these two months have since been renamed ‘Rektember’ and ‘Uptober’ in the cryptosphere. Follow along as we explain the logic behind these monikers and why they offer some hope amid the bitter crypto winter we find ourselves in.
rectember
September is generally a bad month for the crypto industry, especially Bitcoin. Over the past nine years, Bitcoin has seen seven Septembers in the red, with an average decline of 6% during the month. This earned September the infamous title of Rektember.
Also this year, crypto prices remained true to the September trend, with Bitcoin seeing a 3.3% price drop from the start to the end of the month. ETH also fell from $1,557 on September 1 to $1,348 on September 30, which equates to a 15% decline for the month.
Rekt is crypto slang for castaway. It refers to a person who has suffered a heavy financial loss due to a bad investment or trade. It can also be an asset that has lost a lot of value over time. However, Rekt is not the same as a full realized loss. Indeed, rekt investments can still rebound over time, which brings us to Uptober.
Until
October is the complete opposite of September in terms of market performance. Bitcoin has been in the green seven times in the last 9 months of October, with the only red Octobers coming in 2018 and 2019.
Last year, the global crypto industry market cap grew from $1.9 billion on October 1 to $2.6 billion on October 31, translating to a 36% increase for the month. Another big Uptober took place in 2013 when BTC rose almost 60% for the month. All of these signs point to potential price increases and a possible reversal of the bear market we currently find ourselves in.
So far, Uptober has failed to live up to expectations. While previous years saw massive price increases, the current Uptober started with price drops. Bitcoin has lost more than 2.5% of its value since the start of the month, while ETH has fallen 4% over the same period. The global market capitalization of the crypto industry has also increased from $947 billion at the end of September to $928 billion at the time of writing. As such, it’s not a good start to the month that is usually associated with a surge in prices.
Conclusion
While September 2022 has stuck to its Rektember title, Uptober is still trying to find its feet. Prices have been falling since the beginning of the month, but there is still plenty of time for a possible reversal. However, one should not depend too much on Uptober for a price increase. Cryptocurrencies are very volatile, and this month of October could turn out to be an outlier compared to the general trend, like 2018 and 2019.
