The month of August has been one of the worst months in recent times. The market crashed in a matter of days, retesting lower positions that have not been tested in nearly three months. The crash was attributed to a number of factors that were temporary. As we now usher in the new month there is a reason to be optimistic. With only three months to go to the end of the year, many holders expect to see a more re-energized market. The Binance research team has been backing this claim stating in a recent report that they expect a strong month of October.
In the face of it, it is already looking much better than August. Today, October 1st, the market is already recording fresh gains. This has ranged from 3% to 10% among the top cryptocurrencies. For Bitcoin, the asset has gained a little over 5% at the time of writing this. This has pushed Bitcoin above $8,300.
Binance Research Team Comments
In a recent report by the Binance research team, the team stated:
“October 2019 promises to be an exciting month with many questions waiting to be answered. Will gas fees on Ethereum keep increasing? Will the Telegram Open Network launch? Where will the Bitcoin dominance head to?”
Reason For August Crash
Two of the main reasons that led to the August crash was the Bakkt launch and the drop in hash rate. During the month, Bakkt launched its highly anticipated Bitcoin futures. This was after delaying it for months due to regulatory problems. When finally launched, there was great optimism as many believed it would open the door that saw traditional investors such as Wall street flock in. This was however not the case and the launch had a sow start. This triggered a massive sell-off by speculators leading to a short term price crash.
The slow launch was coupled with a dramatic drop in the Bitcoin hash rate. In an unprecedented move, Bitcoin’s hash rate dropped by 40%. This sent a cold shiver among investors and many cashed out expecting a huge crash. Historically, a high hash rate means soaring prices while drops have triggered plummets. Fortunately, the hash rate improved in less than 24 hours and has since hit all-time highs.
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