Bitcoin Ends Seven-Year October Rally with 5% Drop

Bitcoin, the world’s largest cryptocurrency, has recorded a nearly 5% decline in October 2025, marking its first monthly loss for the month since 2018. This drop ends a seven-year winning streak, during which October was seen as one of the most favorable months for Bitcoin investors.

The digital asset struggled to maintain its momentum through the month as broader market jitters and a decline in investor risk appetite weighed on prices. Historically, October had earned a “lucky month” status among crypto traders due to Bitcoin’s consistent positive performance, but this trend reversed sharply this year.

Market Sentiment Weakens Amid Uncertainty

Bitcoin’s performance in October reflected a broader sense of market caution. Analysts noted that cryptocurrencies had started the month on a strong footing, tracking gold and major equity indices that were trading near record highs.

However, as global uncertainty intensified, traders turned more cautious. Adam McCarthy, Senior Research Analyst at digital market data provider Kaiko, highlighted this sentiment, stating:

“Cryptocurrencies came into October tracking gold, tracking stocks near all-time highs, and then as uncertainty hit people for the first time maybe this year, they didn’t rotate back into bitcoin en masse.”

This lack of renewed investor interest led to weaker demand across the crypto market, triggering the first notable October decline in years.

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Geopolitical Factors Add Pressure

Adding to the weakness, geopolitical and trade tensions played a key role in driving volatility. October witnessed the largest crypto liquidation in history after U.S. President Donald Trump announced a 100% tariff on Chinese imports and threatened export controls on critical software.

These policy shocks rattled global markets, increasing investor caution across risk assets. As traders moved towards safer assets, Bitcoin and other cryptocurrencies saw sharp sell-offs, reflecting how macroeconomic developments continue to heavily influence digital assets.

Investor Risk Appetite Remains Muted

Despite being considered a hedge against traditional market fluctuations, Bitcoin’s recent performance suggests that investors are still treating it as a risk-on asset. During times of uncertainty, instead of flowing into Bitcoin, investors preferred to reduce exposure to volatile instruments, including cryptocurrencies.

The 5% monthly drop underscores this shift in sentiment and indicates how sensitive the crypto market remains to changes in macroeconomic and policy conditions.

Outlook

While the latest decline breaks Bitcoin’s strong historical streak in October, market watchers believe that investor interest in cryptocurrencies remains intact over the long term. However, in the short term, continued global uncertainty and reduced liquidity could keep price movements volatile.

For now, Bitcoin’s rare October loss serves as a reminder that even historically strong months are not immune to broader market pressures.

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