 
 
Bitcoin (BTC) has taken a massive hit, with prices tumbling to lows of $109K, wiping out gains recorded in September. Despite the jarring decline, several market participants are mulling the prospects of a major recovery in October, a historically favourable month for the largest cryptocurrency by market capitalization.
Bitcoin Price Falters In Sharp Decline
According to CoinMarketCap data, the Bitcoin price has fallen by nearly 5% in the last 24 hours, trading below the $110K mark. At press time, BTC is valued at $109,607 as the asset’s market capitalization threatens to fall below $2 trillion for the first time in months.
Bitcoin reached an intraday low of $108,000 from a daily peak of $113,722. Despite the price decline, daily trading volumes have climbed by 42% over the last day to settle at $70 billion.
Several reasons account for the steep decline in Bitcoin price, with fresh macroeconomic pressure from the US stoking fear among traders. Firstly, Federal Reserve Chair Jerome Powell’s comments on highly valued stocks may have spooked traders while the DXY (dollar index) bounced by +0.15% to pressure Bitcoin’s dollar-denominated value.
Traders have now shifted their gaze to the incoming US PCE data for macroeconomic clarity. On the derivatives side, over $1.12B in crypto positions were wiped out in under 24 hours, with Bitcoin bearing the brunt of the liquidations.
 
Across the board, cryptocurrency prices are in the red, with Ethereum tumbling below $4,000 while XRP and SOL have shed over 6% of their values in under 24 hours. Currently, the global cryptocurrency market capitalization stands at $3.75 trillion, with average crypto RSI readings indicating oversold conditions.
Uptober Poised To Offer Price Surge For BTC
Despite the price decline, several traders have their eyes focused on October for Bitcoin to recoup its losses. Lark Davis points to the CME FedWatch tool, which pegs the probability of a 25-bps rate cut in October at 91.9%, as a reason for an incoming rally.
“91.9% odds of a 25 bps rate cut in October,” said Davis in an X post. “And the best part – it is not priced in yet.”
Cryptocurrency analyst Timothy Peterson predicted that Bitcoin’s bull market historically begins in October before tapering off in June. Peterson disclosed via X that there is a 50% chance of a new all-time high in early November, building on the forecasted rally in October.
Historically, Bitcoin has pulled in impressive numbers in October, famously raking in gains of 47%, 28% and 40% in 2017, 2020, and 2021, respectively.