Crypto market shows no signs of positive movement, is ‘Uptober’ a myth?

The crypto market’s problems from September seem to have spilled over into October, bucking the historical trend of October being a fairly bullish month. September had seen the crypto market close with muted performance, but there hasn’t been much change for the new month. Almost two weeks into the month, and it’s starting to look like the long-awaited “Uptober” will disappoint investors.

Poor performance All-Around

All indices in the crypto market are seeing poor results from market participants. The first two weeks of the month have returned with negative movement and the declines have continued. Nor has the size of a cryptocurrency mattered since they have all suffered almost identical fates.

The Small Cap index came out as the worst performer for the first two weeks of October at -4.7%. This is understandable given small cap altcoins have been known to take moves a few steps further; the recoveries go higher and the declines go lower.

Large Cap coins followed as the second worst performer over the same time period with a return of -2.4%. A bit more surprising given that they follow the bitcoin price closely, but it didn’t fall too much behind the Mid Cap Index which saw a -2.1% decline.

Market performance remains bad | Source: Arcane Research

Bitcoin emerged as the best performer for this time period with a loss of only -1.5%. It also follows the trend of investors turning more towards bitcoin during this time and taking advantage of the price decline.

The crypto market deviates from the norm

All the performances highlighted above only show that the crypto market is not performing as expected. Although investors are moving back to bitcoin, the market share of stablecoins is still on the rise, so there is still a flight to safety among investors.

Total market cap below $900 billion | Source: Crypto Total Market Cap on TradingView.com

In the past week, the crypto market dominance of bitcoin fell another 0.20%, and ETH fell 0.24%, with losses recorded by others in the top 10 such as BNB, ADA and SOL. Most of this lost dominance went to stablecoins such as USDT, USDC and BUSD, all of which saw an increase in dominance.

Sentiment in the crypto market remains low in the extreme fear zone, suggesting that there is no expected recovery in the market during this time. Unless there is a reversal in this transition to stablecoins, the market will continue to see negative rates.

Featured image from NASDAQ, charts from Arcane Research and TradingView.com

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