The cryptocurrency market has certainly made a striking entrance into the month of October. With prices surging and optimism running high among crypto enthusiasts as Coinbase gets licence granted by Singapore’s central bank.
Over the years, October has often proven to be a favorable month for trading in the crypto market, with prices frequently experiencing upward momentum. This historical trend has fueled speculation that “Uptober” could bring positive returns for traders and investors alike.
Regulatory approval for Coinbase and the positive crypto sentiment
Adding to the positive sentiment is the recent granting of a license to Coinbase by the Monetary Authority of Singapore, the country’s central bank. This regulatory approval has bolstered confidence in the cryptocurrency exchange and its ability to operate within a regulated framework. It’s seen as a significant step forward for Coinbase and a signal of growing institutional acceptance of cryptocurrencies.
As for the price movements themselves, Bitcoin, the flagship cryptocurrency, saw a notable 4.7% increase, reaching $28,294, while Ether, the second-largest digital asset, recorded an even more impressive 4.8% gain, climbing to $1,731. These substantial price gains within a short period have undoubtedly caught the attention of crypto investors and traders.
“Crypto has a spring in its step at the start of this month, which has already been given the moniker ‘Uptober’. Speculation is swirling that, given past performance, there could be a positive few weeks ahead for coins and tokens. Sentiment has been bolstered by Singapore granting a payments licence to the cryptocurrency exchange, Coinbase. Bitcoin and Ether have surged by just under 5% in less than 24 hours as the upbeat vibes surrounding the currencies have taken hold.
Investors should be wary of trying to catch a ride on crypto solely on these moments of momentum, particularly given the highly volatile journey that crypto has been on. Although it seems clear that crypto currencies are here to stay, and there is increasing appetite to add them to portfolios, the waiting game is still on for more regulated options for investors.
The approval for Coinbase in Singapore sent shares up 5% in pre-market trade, and investors see the granting of the full licence as a boost for the exchange in pursuing business with more traditional financial institutions. However, globally it’s still far from clear what the regulatory landscape will look like and anyone considering speculating in crypto should still proceed with caution, use money they can afford to lose, and only dabble at the fringes of their well-diversified portfolios.’’
A word of caution from the experts
Despite the enthusiasm surrounding the crypto market’s strong start to October, experts and financial analysts continue to emphasize the importance of caution. Cryptocurrencies are notorious for their price volatility, and while positive momentum is encouraging, it’s essential for investors to exercise prudence. Those considering crypto investments should be aware of the risks, invest only what they can afford to lose, and maintain a diversified portfolio to mitigate potential losses.