Bitcoin has fallen back below the $60,000 price level for the first time since September 18, and market participants are speculating whether there will be further declines.
“We reached our first BTC target of $59,000, what’s next at $57,000? “It’s unclear whether we will bounce back before then.” Crypto trader Justin Bennett said in an X post on October 10:
Bitcoin is trading at $59,152, down 2.34% over the last 24 hours. Source: TradingView
Despite October being historically one of Bitcoin’s strongest months, the asset experienced a decline.
On-chain analytics provider Santiment noted on October 4 that mentions of Uptober had decreased significantly since the beginning of the month.
US election could change altcoin sentiment
Meanwhile, altcoins with strong fundamentals are failing to rebound as projects remain cautious and ongoing regulatory uncertainty prevents them from maximizing returns, according to cryptocurrency analysts.
“Some altcoins with real value are not rising due to regulatory hurdles,” CryptoQuant founder and CEO Joo Ki-young explained in an X post on October 9.
Ju said that if Donald Trump wins the Nov. 5 U.S. presidential election, “an alternative force could come together.” But for now, buying altcoins is pure speculation in an unregulated market.
“Right now it’s all just gambling in an unregulated space,” he said. He argued that a Trump victory would allow altcoin projects to tap into their profit potential.
“If Trump wins, we expect regulatory changes, including a fee shift to enable token burning for revenue-generating projects.”
Regulatory actions have had a direct impact on altcoin prices recently. Last April, Uniswap (UNI), the decentralized exchange token of the same name, fell to a six-week low after Uniswap said it had received notice of a proposed lawsuit from U.S. regulators.
Traders say altcoins are still ‘accumulating’.
Traders are becoming more vocal about the current state of the altcoin market, especially as the fourth quarter of 2024 begins, which many predict will spark a cryptocurrency market rally.
“The altcoin market is still building up,” MN Trading founder Michael van de Poppe explained in a post dated October 10.
Michael van de Poppe says the “vertical stage” will “probably” emerge in the first quarter of 2025. Source: X/Michael van de Poppe
“The beginning of a bull cycle is very boring, because it’s just a slow rise and nothing more,” Van de Poppe added.
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Meanwhile, Jacob Canfield, co-founder of Signal Profits, said in an X post on October 7 that “a few altcoins and many memecoins are propping up the altcoin market.”
“If Bitcoin dominance is actually rejected, we will see the meme increase to $5 billion to $20 billion. You want to be in a position for that,” Canfield added.
Bitcoin’s dominance at the time of publication was 57.79%, according to TradingView data.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.