Bitcoin holds steady above $20,000 as enthusiasts rally around ‘Uptober’ meme

Bitcoin traded above the $20,000 mark Wednesday morning, following the first surge in what speculators are calling “Uptober.”

The world’s largest cryptocurrency by market capitalization reached a peak of $20,346 before settling at around $20,281 at the time of writing.

It was the highest level since peak at the end of September, which briefly boosted the crypto market.

Bitcoin watchers have observed in previous years that the coin performs well in October. Last year’s rally saw its all-time high of over $66,000 recorded in early November.

“I submit to the Uptober narrative,” tweeted Galois Capital, a crypto hedge fund known for calling collapse of Terra’s algorithmic stablecoin UST. “It feels mature.”

Other accounts with big following were also quick to jump on the meme. Still, besides Twitter chatter, there have been a few notable events that could have pushed Bitcoin.

The United Nations recently warned the Federal Reserve that the rapid pace at which it raised interest rates could “cut an estimated $360 billion in future income for developing countries.”

“Any belief that they (central banks) will be able to bring down prices by relying on higher interest rates without generating a recession is, the report suggests, an imprudent bet,” the United Nations Conference on Trade and Development said in a joint statement with the publication of a report.

If the Fed heeds this warning and slows rate hikes, this could certainly help markets, not just crypto, recover.

Bitcoin’s Previous ‘Uptober’ Performance

Conventional wisdom also suggests that October and November are good months for crypto, especially Bitcoin, although the term “Uptober” is relatively recent, appearing only during last year’s record-breaking rally.

Data from Coinglass indicates that in terms of monthly returns, historically October has been a bullish month for the leading cryptocurrency. The only years where Bitcoin ended the month in the red were 2014 and 2018.

The same data suggests that February is also quite a bullish month for Bitcoin.

Bitcoin Monthly Returns. Source: Coinglass.

The belief contrasts with a superstition surrounding traditional stock markets, known as the “October effect”, which suggests the month is likely to be a month of losses.

Although several financial crashes have occurred in October, there is no data to suggest that it is always an unlucky month.

October holds special significance for Bitcoin, as its pseudonymous creator Satoshi Nakomoto first published the project’s white paper on October 31, 2008. However, the first trade did not take place until January of the following year.