Uptober Effect Boosts Bitcoin and Legacy Altcoins
The widely anticipated “Uptober” effect appears to be taking hold, with Bitcoin launching October—its historically strongest month—on a bullish note. The rally has triggered a broad surge across the crypto market, particularly in legacy altcoins, often referred to as “dino coins.”
Market Sentiment Flips as Short Liquidations Spike
Bitcoin’s climb caught many traders off guard, leading to over $480 million in short liquidations within 24 hours, according to CoinGlass. In contrast, long liquidations stood at just $110 million, highlighting the strength of recent buying momentum. As a result, the Crypto Fear and Greed Index jumped 15 points in less than a week, marking a six-week high and a shift from fear to greed.
Among major altcoins, Litecoin (LTC) emerged as a top performer, soaring 10% to $118. The move comes amid growing speculation around the approval of a spot Litecoin ETF, with the Canary Litecoin ETF facing a final decision from the U.S. SEC on October 2.
ETF Hopes and Safe-Haven Appeal Fuel the Rally
Macroeconomic uncertainty, including the ongoing U.S. government shutdown, is also influencing market flows. Speaking to Decrypt, Balaji Srihari, Vice President at CoinSwitch, said:
“Macroeconomic factors such as the U.S. government shutdown concerns and a drop in private sector employment are pushing investors toward safe-haven assets like Bitcoin and Gold.”
Srihari added that capital is now rotating into established Layer-1s like Litecoin and Ethereum, as part of a seasonal Q4 trend.
“‘Uptober’ refers to October’s historical trend as Bitcoin’s strongest month. Seasonality typically favors Q4,” he noted.
Bitcoin has gained 3.5% in 24 hours and 8% since September 28, climbing from $109,000 to $118,600. If momentum continues, Srihari believes $140,000 could be within reach—potentially triggering a deeper altcoin rotation.
