The excitement around “Uptober,” a popular term among crypto enthusiasts expecting a bullish October, is losing steam as the market takes a significant downturn. The month, typically known for price gains, has seen sharp declines across major cryptocurrencies, leading to a shift in sentiment on social media.

Social Media Optimism Fades

At the start of October, there was widespread optimism on social media about an “Uptober” rally. However, as markets started to dip, mentions of “Uptober” decreased dramatically, according to on-chain analytics provider Santiment. In its post on October 4, Santiment noted that social media had become more bearish, with terms like “Selltober” and “Octobear” replacing the earlier bullish outlook.

This shift indicates that traders are no longer convinced that October will automatically bring strong gains. Instead, they are becoming cautious as the market outlook remains uncertain.

$200 Billion Market Decline

Since the beginning of the month, crypto markets have shed roughly $200 billion, an 8% drop in total market capitalization, according to CoinGecko. Bitcoin, the leading cryptocurrency, briefly dipped below $60,000 on October 3 before recovering slightly. This marked a significant shift in sentiment, especially since October has historically been a strong month for Bitcoin, with positive price action in nine of the past 11 years.

Despite the recent losses, there is hope for a mid-October recovery based on past trends. Typically, markets have seen gains around the middle of the month, which could still offer a chance for a rebound.

Reasons Behind the Crypto Dip

Several factors are contributing to the current market downturn. According to analysts at 10x Research, many crypto bulls had expected the rally from earlier this year to continue, but technical indicators suggest that the market was overextended. Large sell-offs from early adopters and token unlocks are also putting downward pressure on prices, despite inflows from stablecoins and Bitcoin Spot ETFs.

Veteran trader “Ash Crypto” pointed out on social media that Bitcoin could dip further before rallying. He noted that when bears get too excited and start predicting much lower prices, the market often rebounds sharply.

What’s Next for Uptober?

Although the market has taken a hit, some experts believe there could still be a recovery before the month ends. Santiment’s founder, Maksim Balashevich, mentioned that the current lack of optimism could actually open the door for a short-term bounce. However, whether the broader downtrend is over remains to be seen.

Historically, October has been a good month for crypto, and if previous cycles hold, we might see prices climbing again toward the end of the month.

For now, traders are watching closely, hoping for a turnaround while acknowledging that “Uptober” may not always arrive on time.