“Uptober” Hopes Tested as Bitcoin and Ethereum Slide

Crypto markets pulled back on Friday, with Ethereum underperforming Bitcoin after months of relative strength. ETH dropped about 6.5%, while BTC slid around 3.8%, signaling a pause in the bullish momentum seen earlier in the quarter.

Seasonality Factor

Historically, September tends to be a weak month for cryptocurrencies, often followed by a recovery known as “Uptober.” Whether this seasonal pattern repeats will depend on upcoming catalysts.

Potential Catalysts Ahead

• Further Federal Reserve rate cuts could improve liquidity conditions and support risk assets.

• The SEC’s pending decisions on multiple spot crypto ETFs may drive institutional inflows.

• Morgan Stanley’s plans to launch retail crypto trading via E-Trade in early 2026 could reinforce the narrative of broader mainstream adoption.

For now, traders remain cautious, waiting to see if these macro and regulatory drivers can revive momentum and validate the “Uptober” rally narrative.