Cryptocurrency prices have declined to begin October, reversing much of the gains seen in the final weeks of September after the U.S. Federal Reserve lowered interest rates.
Bitcoin (BTC) has fallen back to $60,000 U.S. after trading above $65,000 U.S. in recent weeks and posting one of its strongest September performances ever.
Ethereum (ETH), the second largest cryptocurrency by market capitalization, declined 5% on Oct. 1 and is currently trading at $2,456.13 U.S.
Stocks related to cryptocurrencies are also declining, with shares of exchange Coinbase Global (COIN) down 7.4% and Bitcoin acquirer MicroStrategy (MSTR) down 3.5%.
The declines come as escalating tensions in the Middle East dampen investors’ appetite for riskier assets such as cryptocurrencies.
Markets are also being negatively impacted by a strike among dockworkers along the U.S. East Coast that has halted half of America’s container shipments and threatens the economy.
The difficult start to October runs counter to the typical narrative for crypto at this time of year.
Historically, October and November have been the strongest months of the year for Bitcoin and other digital assets.
Bitcoin has averaged a 23% gain in October each year since 2013, leading crypto bulls to label the month “Uptober.” So far this year, Bitcoin’s price has risen 40%.
