As the world’s largest cryptocurrency, Bitcoin isn’t usually easily influenced by every other development in the crypto-space. However, when a Bitcoin-related development occurs, it undoubtedly has an impact on the entire market.
This month also saw a significant macro development for Bitcoin, which could result in significant market changes.
What became of Bitcoin?
While several factors have been at work here, one of the most important reasons for October’s success is that the last week of September marked a successful bounce from the bull market support band.
The bull market support band (BMSB) is critical in predicting the future. Especially when previous bull run performances are considered. Historically, a bounce off the BMSB has resulted in a good northbound run for the king coin.
Such a bounce was last seen in August 2020, after which there was a 7-month rally that ended when Bitcoin reached its all-time high in April 2021. This 484 percent increase took Bitcoin from $10k to $62k on the weekly chart.
Altcoins, as expected, followed suit and performed well at the time. This, in turn, had a positive impact on the market’s total market capitalization.
Similarly, the BMSB bounce in October has already resulted in a 22 percent increase in market cap this month.
Going forward, as long as BTC maintains this rebound, the broader market is likely to rise steadily. Despite the fact that September was relatively bearish, the crypto did not fall within the band. As a result, in the future, a red month is likely to see BTC remain above the band.
Furthermore, such events have a cascading effect on participation and investment. The August 2020 bounce-off, combined with Bitcoin’s increasing popularity over the year, has already resulted in a phenomenal surge in participation.
Since October 2020, wallets have increased by 20 million. Prior to 2020, the same figure took two years, and in the future, this time period could be significantly shorter.
Is there anything else besides price movement?
Institutions, in addition to price movement, play a significant role in expanding the reach of cryptocurrency. Companies such as Grayscale, MicroStrategy, and Tesla have been instrumental in bringing Bitcoin and altcoins into the mainstream.
People’s trust in such companies, or in specific individuals representing these companies, such as Michael Saylor and Elon Musk, has also resulted in an increase in investment.
Any type of successful initiative relies on widespread participation and acceptance. In fact, Bitcoin is expected to reach the level of acceptance that the Internet has today in just four years. The Internet, on the other hand, took 7.5 years.
Such occurrences are critical to the success of any project. The aforementioned bounce-off, in particular, could lead to more growth for Bitcoin, investors, and the market in the near future.