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

• Why Did Bitcoin Drop in October 2025?
• The Record Liquidation That Shook Crypto Markets
• Macroeconomic Headwinds: Fed Policy and Missing Data
• Bitcoin’s 2025 Performance: Context Matters
• Frequently Asked Questions

Bitcoin closed October 2025 with a 5% decline, marking its first negative October since 2018. The drop came amid record liquidations, macroeconomic uncertainty, and reduced risk appetite. Despite the monthly slump, bitcoin remains up 16% year-to-date, outperforming traditional markets like the S&P 500. This article breaks down the key drivers behind Bitcoin’s October performance, analyzes market reactions, and explores what’s next for crypto.

Why Did Bitcoin Drop in October 2025?

Bitcoin’s 5% October decline snapped a seven-year streak of positive returns for the month. The downturn was fueled by three main factors: a record $X billion liquidation event on October 10-11, fading risk appetite as the Fed resisted rate cuts, and geopolitical tensions from Trump’s 100% tariff threat on Chinese imports. "This shows how concentrated crypto markets still are," noted a BTCC analyst. "Even Bitcoin and Ether can drop 10% in 20 minutes when leverage unwinds."

The Record Liquidation That Shook Crypto Markets

Between October 10-11, Bitcoin plunged from $126,000 to $104,782—triggering the largest single-day liquidation in crypto history. Data from CoinMarketCap shows over $X billion in Leveraged positions were wiped out across exchanges including BTCC. The sell-off left order books unusually thin, with even institutional traders scrambling to reduce exposure. JPMorgan’s Jamie Dimon added to the gloom, predicting a "significant equity correction within 6-24 months."

Macroeconomic Headwinds: Fed Policy and Missing Data

The Fed’s reluctance to cut rates—combined with a government shutdown that blocked key economic reports—left traders flying blind. "Without CPI or jobs data, everyone’s playing darts in the dark," quipped Wintermute’s Jake Ostrovskis. The uncertainty hit risk assets across the board, though Bitcoin’s 16% YTD gain still beats the S&P 500’s 13.1% return (including dividends).

Bitcoin’s 2025 Performance: Context Matters

Zooming out, Bitcoin’s October dip looks like a speed bump in an otherwise strong year. The cryptocurrency remains up 16% YTD, buoyed by pro-crypto policies from the Trump administration. Traditional markets have also rallied, with the S&P 500 enjoying its third-longest streak without a 5% pullback in 44 years. But as veteran traders know, "Bull markets climb a wall of worry"—and October’s volatility proved crypto’s wall is steeper than most.

Frequently Asked Questions

How much did Bitcoin drop in October 2025?

Bitcoin fell approximately 5% in October 2025, its first negative October since 2018.

What caused Bitcoin’s October decline?

The drop was driven by record liquidations, reduced risk appetite, and macroeconomic uncertainty including Fed policy and geopolitical tensions.

Is Bitcoin still up for the year?

Yes, Bitcoin remains up 16% year-to-date as of November 2025, outperforming many traditional assets.