Bitcoin Ends October in the Red for the First Time Since 2018, Breaking a 7-Year Streak

• Why Did Bitcoin Drop in October 2025?
• Leverage Wipeout: How Record Liquidations Shook Crypto
• Bitcoin vs. Traditional Markets: The 2025 Scorecard
• What’s Next for Bitcoin After the Streak Ends?
• FAQ: Bitcoin’s October 2025 Slump

Bitcoin closed October 2025 with a 5% decline, marking its first negative monthly performance since 2018. The drop came amid reduced risk appetite, Leveraged position unwinding, and global market uncertainty—despite Bitcoin hitting a new all-time high earlier in the month. Analysts attribute the volatility to macroeconomic tensions, including Trump’s proposed 100% tariff on Chinese imports and Fed policy ambiguity. While crypto markets remain concentrated, traditional assets like the S&P 500 continue to outperform, raising questions about Bitcoin’s near-term trajectory.

Why Did Bitcoin Drop in October 2025?

Bitcoin’s 5% October decline snapped a seven-year streak of positive monthly closes, a surprising shift given its rally to a record $126,000 earlier in the month. The pullback to $104,782 by mid-October coincided with a perfect storm: leveraged traders got liquidated (the largest crypto liquidation event in history), the Fed dampened rate-cut hopes, and Trump’s trade war rhetoric spooked markets. As Kaiko’s Adam McCarthy noted, "Crypto’s concentration risk showed—when bitcoin and Ether drop 10% in 20 minutes, there’s nowhere to hide."

Leverage Wipeout: How Record Liquidations Shook Crypto

October’s volatility vaporized $12 billion in leveraged positions across centralized platforms like BTCC and Wintermute. "Traders are licking their wounds after the mother of all liquidations," said Wintermute’s Jake Ostrovskis. Thin order books exacerbated the moves, with even pros scrambling to deleverage. The Fed’s lack of economic data (due to a government shutdown) left markets flying blind, amplifying caution. JPMorgan’s Jamie Dimon piled on, predicting a "significant equity correction within two years"—another headwind for crypto sentiment.

Bitcoin vs. Traditional Markets: The 2025 Scorecard

Despite October’s slump, Bitcoin remains up 16% YTD—far behind the S&P 500’s 16.3% gain (6,840 points) and its 22.8% annualized return since 2022. Even the boring 60/40 portfolio delivered 13.1%, crushing its 8% historical average. The S&P’s 130-day streak without a 5% dip ranks among its longest in 44 years, suggesting traditional markets are absorbing shocks better than crypto. "When the tide turns, Bitcoin still moves like a speedboat while the S&P is an aircraft carrier," quipped one BTCC analyst.

What’s Next for Bitcoin After the Streak Ends?

History shows Bitcoin often rebounds after breaking multi-year trends. Seasonal tailwinds (November-December averages +12% gains) and potential ETF inflows could reignite momentum. But with Trump’s tariffs looming and the Fed data-dependent, volatility may persist. As McCarthy warns, "In crypto, ‘stable’ just means the rollercoaster is climbing slowly."

FAQ: Bitcoin’s October 2025 Slump

How much did Bitcoin drop in October 2025?

Bitcoin fell approximately 5% in October 2025, closing the month at $104,782 after peaking above $126,000 earlier.

What caused Bitcoin’s decline?

The drop was driven by leveraged position liquidations, reduced risk appetite, and macroeconomic uncertainty—including Trump’s trade policies and delayed Fed rate cuts.

Is Bitcoin still a good investment after October’s drop?

While Bitcoin remains up 16% YTD, its volatility contrasts with steadier traditional assets. Diversification is key—consult a financial advisor before allocating.