Bitcoin price has continued to stay in the negative territory for the second straight day, but maintained its brief support at $122,000.
It’s worth noting that October has started with a bullish momentum for not only BTC and altcoins but also for the broader financial market.
For context, the S&P 500 index and the tech-savvy Nasdaq Index have recorded massive gains, indicating a positive sentiment among traders.
Besides, assets like gold, silver, and others have also continued to witness robust growth. Amid this, the crypto stock segment also added some gains, thanks to the robust gains in Bitcoin price and the broader crypto market.
This suggests that the “Uptober” sentiment has already been priced in, and given the historical performance of the final quarter of the year, investors await further gains.
It’s worth noting that the crypto stocks usually move in tandem with the broader digital assets’ movements.
So, here we explore the recent performance of BTC price and how it has influenced the crypto stocks in recent times.
Bitcoin Price Retreats, But Market Trends Hint at Recovery
BTC price today slipped early 1% in the daily chart and traded at $122,274, with its trading volume witnessing a heavy slump of 30% to $58 billion.
Notably, the crypto has touched a daily high and low of $124,167 and $121,191, respectively.
Despite its recent losses, Bitcoin price has added more than 3% on a weekly basis, while witnessing a pump of over 8% over the last 30 days.
Notably, it seems that the “Uptober” sentiment and the robust institutional interest have helped in its recent gains.
For context, BTC tends to offer robust returns in October as well as through the final quarter of the year.
According to CoinGlass data, the average return of Bitcoin in October is around 21% from 2013, while its average Q4 return sits at 79%.
Although historical returns don’t guarantee future returns, if the cycle repeats, BTC price could touch a new milestone soon.
In addition, the latest institutional interest further boosts the positive sentiment in the market.
According to Farside Investors’ data, the US Spot Bitcoin ETF recorded an inflow of $2.52 billion this week through October 8.
This comes after a robust $3 billion inflow recorded last week, which indicates a soaring institutional interest in the flagship crypto.
BTC Must Hold This Support to Avoid Further Fall
As Bitcoin price recorded a retreat, the market watchers are anticipating the potential next move of the crypto.
Amid this, analyst Michael van de Poppe has shared a detailed analysis, highlighting the key price levels to watch ahead.
According to Poppe, BTC price must hold the $121k support to avoid further dip. However, in case the support fails, the next support would be at $119,504, which also marks a “potential area to buy.”
In other words, if BTC slips to $119k, it would allow more investors to enter the market at a discounted price.
However, if that support fails, Bitcoin price could plunge to $116k or even $114k again.
Meanwhile, it seems that the investors have also shifted their focus towards the crypto stock sector, amid the recent robust rally in the digital assets.
So, here we explore how the crypto stocks have performed amid the “Uptober” sentiment among traders.
Influence of Bitcoin Price on the Crypto Stock Sector
The crypto stocks usually move in tandem with the broader crypto market performance. This is also evidenced by the recent performance of the top players in the space, like Circle (CRCL), Strategy (formerly MicroStrategy) (MSTR), Coinbase (COIN), and others.
As Bitcoin price touched a new high this week, Circle stock has added nearly 17% over the past five days. On October 8, the CRCL stock closed at $150.46, up 1.17% from its previous close.
Simultaneously, the Coinbase stock closed at $387.27 on October 8, witnessing a surge of over 3% from its prior close. Over the last five days, the crypto stock has added nearly 12%, indicating robust investor interest.
However, the movement of the MicroStrategy stock was muted in the 30-day chart, with the crypto stock returning only 0.27%.
On October 8, the MSTR stock price closed at $330.80 with a slight gain of 0.73% from its prior close.
Considering all these aspects, the investors are keeping a close track of Bitcoin price for potential future movements of the crypto stock sector.
While a BTC breakout might lift the prices of the assets, a pullback may dampen the broader market sentiment.