Bitcoin Ends October in the Red for the First Time Since 2018, Breaking a 7-Year Winning Streak
- Why Did Bitcoin Break Its 7-Year October Winning Streak?
- The Perfect Storm: Record Liquidations Meet Geopolitical Tensions
- Year-to-Date Performance: Bitcoin Still Outshines Traditional Assets
- What’s Next for Crypto Markets?
- FAQ: Your Bitcoin October Slump Questions Answered
Bitcoin closed October 2025 with a 5% decline, marking its first negative performance for the month since 2018 and snapping a seven-year streak of gains. The drop came amid record-breaking liquidations, geopolitical tensions, and Fed uncertainty. Despite the monthly slump, Bitcoin remains up 16% year-to-date, outperforming traditional assets like the S&P 500. Analysts attribute the volatility to Leveraged positions unwinding and caution among institutional players.
Why Did Bitcoin Break Its 7-Year October Winning Streak?
October 2025 will go down in crypto history as the month that broke Bitcoin’s seven-year October winning streak. According to CoinGecko data, BTC closed the month down approximately 5%—a stark contrast to its typical "Uptober" performance. The downturn coincided with:
- The largest single-day liquidation event in crypto history ($12B+)
- Trump’s announcement of 100% tariffs on Chinese AI/EV imports
- The Fed resisting expected rate cuts amid a government data blackout
As Jake Ostrovskis from Wintermute put it: "The market’s still licking its wounds after that historic liquidation. Everyone’s eyeing potential systemic vulnerabilities now."
The Perfect Storm: Record Liquidations Meet Geopolitical Tensions
Between October 10-11, bitcoin plunged from $126,000 to $104,782—a 16.8% drop that vaporized leveraged positions across centralized exchanges. "What’s telling," notes BTCC analyst Adam McCarthy, "is that traders didn’t flock back to BTC as a safe haven. The market’s still too concentrated—even BTC and ETH can drop 10% in 20 minutes."
The sell-off accelerated after:
| Event | Impact |
|---|---|
| Trump’s trade restrictions | Spooked tech and crypto markets |
| Fed’s hawkish stance | No rate cuts despite economic uncertainty |
| Government shutdown | Key economic data blackout |
Source: TradingView
Year-to-Date Performance: Bitcoin Still Outshines Traditional Assets
Despite October’s stumble, Bitcoin’s 2025 gains (+16%) continue to outpace:
- S&P 500 (+16.3%)
- 60/40 Portfolio (+13.1%)
- Gold (+6.8%)
The S&P’s 130-day streak without a 5% pullback (its third-longest in 44 years) suggests Bitcoin’s correction might be a buying opportunity. Historically, such dips precede final upward moves—especially during Q4’s seasonally strong period.
What’s Next for Crypto Markets?
With leverage flushed out and the Fed in wait-and-see mode, the BTCC research team identifies three key watchpoints:
- Institutional flows: Jamie Dimon’s warning about an equity correction could benefit BTC
- ETF activity: Spot Bitcoin ETFs now hold 4.2% of circulating supply
- Technical levels: $95K support held during October’s worst sell-offs
As always in crypto, expect the unexpected. Or as traders say: "The market takes the stairs up and the elevator down."
FAQ: Your Bitcoin October Slump Questions Answered
Why did Bitcoin drop in October 2025?
A combination of record liquidations, geopolitical tensions, and Fed policy uncertainty triggered the 5% monthly decline.
How does Bitcoin’s 2025 performance compare to stocks?
Bitcoin’s +16% YTD return slightly edges out the S&P 500’s +16.3%, but with higher volatility.
Should I be worried about Bitcoin’s October drop?
Not necessarily—historical data shows October dips often precede year-end rallies. This article does not constitute investment advice.
