Bitcoin and Altcoins are Recovering After Historical Crash

The crypto market is reviving after a significant collapse over the weekend. Bitcoin (BTC) had fallen below $105,000 on Friday, alarming investors. However, it has shown a recovery signal by rising 3% at the beginning of the week to reach $114,738. Another major cryptocurrency, Ethereum (ETH), rebounded with an 8.5% upward movement to the $4,132 range.

According to data platform Coinglass, 1.6 million investors were liquidated during Friday's sharp decline, resulting in a total of $19.1 billion worth of positions being closed. Presto Research analyst Rick Maeda stated that the collapse was not fundamentally due to reasons specific to crypto, but rather a result of rising trade tensions between the United States and China. Maeda expressed, "Sales grew in a chain reaction due to the lack of liquidity over the weekend, leading to billions of dollars in forced liquidations."

So, is the Uptober trend still valid? Vincent Liu, investment director at Kronos Research, noted that liquidity has returned to the markets following panic selling, and investors have begun to seize "buying opportunities at the dip." Liu stated, "Despite the fluctuations over the weekend, the 'Uptober' trend is still alive, and buyers are bravely returning to the market."

CoinW Strategy Director Nassar Achkar mentioned that the expectations for a rise in October are maintained and that investors are now focused on upcoming U.S. inflation data, Federal Reserve meetings, and ETF fund flows. Nick Ruck, director of LVRG Research, reported that on-chain data indicates large investors are accumulating Ethereum and that many altcoins are showing "signals of recovery from the oversold zone."

On the other hand, Maeda from Presto commented, "The spirit of Uptober has been somewhat shaken but is not completely over," emphasizing that market recovery may take some time. He reminded that the new trade tensions between the U.S. and China have made investors cautious.