After months of trading sideways, the cryptocurrency market fully awakened during October, with the largest digital currency, Bitcoin, exhibiting its strongest monthly rally since last January. However, the crypto rally was broadly supported, with gains ranging from 7% to 30%. Additionally, the market capitalization of all cryptocurrencies increased by nearly 19% to $1.255 trillion, the largest increase since the 33% jump last January.
Nevertheless, not all sectors benefited equally; for instance, the CoinDesk DeFi Index (DCF), which includes tokens related to the decentralized financial sector, only saw a 7% increase in October. Key DeFi tokens such as Curve (CRV), Maker (MKR), Uniswap (UNI), and Compound (COMP) even experienced declines of 3% to 7% luckily the portfolio does not hold these. However the defi-oracle: Chainlink (LINK) outperformed significantly, which is part of the portfolio.
Due to circulating rumours about the approval of a spot BTC-ETF, the Bitcoin market has experienced a significant surge. The approval implies that institutional investors now have more accessible entry points to Bitcoin exposure. If these major players indeed start acquiring these ETFs, the ETF manager will consequently purchase Bitcoin on the open market, leading to a considerable increase in demand. When you factor in the impending halving of the increasing Bitcoin supply next April, you get a beautiful cocktail of less supply and more demand which can only mean one thing: $$$
It’s fair to express my bullish sentiments for the upcoming months. Nevertheless, I retain a degree of caution concerning the overall economy, given the prevailing uncertainties dominating the market. Yet, my outlook remains optimistic in the realm of cryptocurrency.
Thanks to our fund’s balanced portfolio, and diversified strategic approach, we successfully concluded October with a profit of +10.7%.
