The cryptocurrency market has made significant strides in the first two days of October, with Bitcoin and Ethereum both reaching their highest levels since August. Bitcoin surged to $28,227, while Ethereum climbed to $1,755, according to an analysis by Samer Hasn, Market Analyst at XS.com.

The gains are in line with the bullish trend often associated with October in the cryptocurrency sector. The month has been dubbed "Uptober" within the crypto community due to Bitcoin's historical performance; it has only recorded losses twice in October since 2013.

The start of the new month has also seen a rise in trading sentiment. Data from CryptoQuant revealed that open interests of Bitcoin derivatives have reached their highest levels since mid-August, with more than 8.442 billion contracts as of Monday morning.

However, this sudden rise could potentially trigger further increases if open short positions are liquidated. Traders' attention remains on the upcoming decision of the Securities and Exchange Commission (SEC) regarding several applications to launch spot Bitcoin ETFs. Expectations suggest that the decision on these applications may be postponed until January 2024.

In addition to the SEC's impending decision, traders are keeping an eye on regulatory developments and actions taken by U.S. law enforcement agencies, including the SEC and the Commodity Futures Trading Commission (CFTC). Increased regulatory pressure on companies operating in the sector could continue to influence market sentiment.