The ongoing crisis in the Middle East has had a negative impact on Bitcoin’s recovery in September and the trend continues in October. Historically considered a positive month for the market, Bitcoin has fallen by 4.8% to $60,683, with analysts predicting further volatility ahead. Market data shows that over $700 million has been liquidated in October, with Bitcoin taking a significant portion of that figure. This could be viewed as a market reset, as many traders were over-leveraged before the downturn.
Despite the market downturn, institutional investors continue to buy digital currency at a rate at or above the daily mined quantity. BTC has managed to sustain support above $60,000 and analysts predict fluctuations in the $72,000 range. The anticipation for a fed interest rate cut and market rebound may come from Bitcoin’s historically positive performance in Q4. Altcoins typically maintain a deep correlation with Bitcoin, with Solana and Cardano standing out for their unique technology and ecosystem development.
Solana has been making strides in the DeFi market, with over $10.5 billion Total Value Locked (TVL) and more than 77 million SOL tokens locked. This scarcity could potentially drive prices up in the long term. Solana is also becoming a hub for retail transactions, with the growth of memecoins and DePIN. Analysts predict that SOL will be in high demand and could potentially reach the $260 all-time high milestone in the future. Meanwhile, Cardano is considered one of the most developed blockchain protocols on the market, and many believe it is undervalued at $0.34.
Cardano recently introduced decentralized governance through the Chang hard fork, giving the community a voice in the protocol’s affairs. This move has been praised for promoting inclusion and transparency within the Cardano ecosystem. Both Solana and Cardano continue to build robust and diverse ecosystems that are expected to support the growth of their native tokens. While the current market conditions are challenging due to global events, the long-term outlook for cryptocurrencies remains optimistic as institutional interest remains strong and new technologies are being developed.
