Bitcoin climbs above $118,000 as investors pin hopes on 'Uptober' bounce

Core Insights - Bitcoin (BTC) surged over 4.5% to exceed $118,000 amid uncertainty from a potential US government shutdown and seasonal trends favoring crypto markets [1] - October has historically been a strong month for Bitcoin, with gains in 10 of the last 12 years, leading to the term "Uptober" [2] - The Treasury General Account remains well-funded, reducing concerns about liquidity being drained from crypto assets [4] Market Performance - Bitcoin experienced volatility, briefly dropping to $108,000 before rebounding, with analysts suggesting that false downside breakouts can set up bullish trends [3] - The token ended September 4% higher, setting a positive precedent for October gains [2] Stablecoin Dynamics - The supply of Circle's USDC stablecoin increased by 19% quarter-over-quarter to $73.6 billion, indicating strong demand and a shift from previous growth rates [5] - Stablecoin activity has been bolstered by recent legislation, providing additional support to the crypto market [4] - Demand for USDC is diversified across blockchains, with 62% on Ethereum, 14% on Solana, and 8% on Hyperliquid [6] Future Outlook - The anticipated rise in stablecoin adoption is expected to drive the next wave of crypto adoption, potentially impacting prices within 6 to 12 months [5] - A strong fourth quarter could pave the way for bullish targets in the crypto market [7]