“Uptober”, the nickname for the traditionally bullish tenth month, has usually been associated with Bitcoin (BTC) rallies, but analysts are now paying attention to what comes after the flagship crypto’s moves.
In particular, Andrei Grachev, Founding Partner at Falcon Finance, notes that while strong BTC performance in October has historically sparked capital rotation into altcoins and decentralized finance (DeFi) protocols, this year appears to be different, as the flow encompasses stablecoin yield products and tokenized real-world assets (RWAs) as well.
“Uptober has always been framed around Bitcoin’s rally, but the real story is what happens after Bitcoin moves. Historically, when Bitcoin climbs in October, capital rotates into other parts of the market — altcoins, DeFi protocols, and now tokenized assets. This year is different because the ecosystem includes stablecoin yields and real-world assets,” Grachev told Finbold.
More yield for retail investors
As a result, Grachev argued, traders are starting to see the season as more than just a price hunt but a chance to capture new income opportunities by exploring safer products.
“For retail, this means Uptober may not just be about chasing price. It could also be about capturing yield in safer products. The implication is that the market is becoming more layered. Uptober rallies no longer stop with Bitcoin — they spread into other sectors that now offer very different risk profiles,” he added.
Interestingly, some traditionally stable assets have fallen sharply in recent times. Gold, for instance, dropped 10% last week.
Such pullbacks have often preceded renewed strength in risk-on assets, including altcoins, equities, and BTC itself, and the same was the case this time, as evidenced by the crypto market’s reinvigorated momentum this weekend.
Crypto expert Michaël van de Poppe shared a similar sentiment to Grachev:
“All I know though, if Gold comes down and starts to stall –> that was the signal in the last cycle that Altcoins and risk-on started to happen. It’s a good sign going into FOMC that Gold comes down. It signals that the markets are more open for risk-on appetites.”
With stock indices also hitting new all-time highs, traders now speculate it’s only a matter of time before “digital gold” follows suit and sees a new all-time high.
Featured image via Shutterstock
