PUMPtober Crypto Market Dumps but Big Rebound Expected, Analysts Say

In brief

• Bitcoin and Ethereum drop sharply as liquidity rotates into gold and silver assets.
• Analysts expect a Q4 rally with Bitcoin targets between $150K and $180K.
• Altseason forecast shows 10x to 50x gains possible as fear gives way to accumulation.
  

The crypto market saw a sharp decline as Bitcoin fell 2.69% to $119,742 and Ethereum dropped 4.94% to $4,274. This pullback occurred during a broader rotation of liquidity toward traditional assets, including gold and silver, both reaching new all-time highs.

Market analysts, including Ash Crypto, suggest this drop aims to flush out retail longs before a renewed upside move. They point to historical patterns where similar shakeouts preceded major bull runs in previous cycles, especially in 2017 and 2021.

At the same time, gold’s market cap surged to $27 trillion, while silver touched $2.7 trillion, pulling capital from risk assets. This shift indicates investor preference for safety, especially with the U.S. government still shut down and inflation expectations climbing.

Analysts Forecast Major Q4 Bounce and Altseason Acceleration

According to Ash Crypto and other analysts, fear is rising, but technical signals suggest a rebound could begin around mid-to-late October. Market Spotter also highlights neutral RSI and tightening Bollinger Bands, hinting at upcoming volatility.

Bitcoin and Ethereum’s recent dips are viewed as strategic setups rather than signs of collapse, with large players quietly accumulating. Data shows the total crypto market cap has recovered from $3 trillion to $3.68 trillion, suggesting early signs of strength.

Historical data shows Bitcoin performs strongly in Q4, often closing with 80%+ gains, supported by macro tailwinds. Analysts believe the bull cycle remains intact, fueled by returning liquidity, softening Fed tone, and growing institutional interest.

As short-term fear continues, long-term expectations remain bullish, with forecasts of Bitcoin reaching $150K and Ethereum touching $12K. Analysts maintain that a real altseason could follow, delivering 10x to 50x gains across various tokens.