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Highlights
- After months of being in a bearish phase, the crypto world has been surging.
- From cryptocurrency perspective, the September month is known as the jazzier ‘Rektember’ month.
- The worst-ever Rektember for Bitcoin was in 2018, with the total market capitalization going down by US $186 billion.
As Bitcoin finally breaching the 4-month high to hit US $55000 on October 6, social media world was abuzz with memes, jargons highlighting that the cryptocurrencies have moved out of its long-term wilderness. After months of being in a bearish phase, the crypto world has been hopping and changing positions for some time keeping the market in suspense whether its ready to move out its phase.
Traditionally though the month of September has been a month of lows for the cryptocurrencies. There may have been bouts of improved signs, but all overall it’s been a month of lows. In fact, traditionally if one were to look at the Bitcoin prices since 2013, the month of September just seen two green years. Rest 7 years has seen red, with 2014 being the worst and 2016 being the best. has just greens in two years. The same is synonymous for the stock markets as well and in the circles, they call it the ‘September effect’.
What is Recktember?
From cryptocurrency perspective, the September month is known as the jazzier ‘Rektember’ month. Rektember indicates the combination of September and ‘rek short acronym used for wreck. It indicates a month which has low volumes and low prices for cryptos. This year though, while the Bitcoin & Ethereum had yet another forgettable year, altcoins coins did extremely well.
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The price of Bitcoin in Rektember month as low as US $40,000 on 22 September. The worst-ever Rektember for Bitcoin was in 2018, with the total market capitalization going down by US $186 billion, 77% down from its all-time high. Almost US $40 billion was dumped in one go in 2018 marking the biggest 24 hour fall of the year.
In 2021, though the market didn’t see such a drastic fall, but the total market cap fell to US $820,218,503,579 from a high of US $ $989,965,076,456. The Rektember effect was clearly visible on the leading cryptocurrency.
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What is Uptober?
From the lows to the high, October is traditionally considered to be the month where the cryptocurrency market sees a comeback. The phrase ‘Uptober’ has quickly caught among true believers on social media once the Bitcoin started rising and the Uptober effect was visible on Day 1 itself of the month. Uptober is an amalgamation of two words an ‘up’ and October’s ‘tober’, hence the term Uptober.
It indicates the market sentiments and a flurry of activities which sees the market go up. Traditionally as well, the month of October throughout is seen as a profitable month for the cryptocurrency market. Since 2013, the market has rarely seen a poor run of just two instances (2018 & 2019) when it had seen negative scores. Rest seven years, it had seen green with the best year being 2013, wherein it registered 60% gains for Bitcoin.
In October 2021, though the market seen dramatic rise with the total market cap reaching US $2.33 trillion, an increase of 1.68% in just 24-hour period.
Conclusion
So, should you read too much into the jargons? Well, if you are an active investor in the cryptocurrencies, then, you would have to be wary of the traditional market trends. Investors would do wise, if they steer carefully off the paths to ensure that they don’t repeat the mistakes of the heavy investing in the month of September and thread carefully and seeing the market sentiment, invest in the month of October.
