Bitcoin is heading for its first October loss since 2018, ending a seven-year streak that had made the month a lucky one for traders.
The digital coin has dropped nearly 5% this month as investor confidence weakened and global markets faced uncertainty. The recent slowdown reflects a cautious mood among traders who are avoiding risky assets amid concerns over economic instability and interest rate movements.
October had long been considered a favorable month for Bitcoin, with consistent gains boosting optimism among crypto enthusiasts. However, this year’s decline has left many surprised, as the coin failed to maintain its upward trend despite earlier momentum.
Market experts believe that the dip signals growing hesitation among investors, with many waiting for clearer signs of recovery before re-entering the market.
Bitcoin’s losing streak after years of October gains suggests that the crypto market is entering a more mature phase. Traders now appear more cautious and realistic about volatility. This shift could mean fewer short-term spikes but stronger long-term stability if investor confidence returns.
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," said Adam McCarthy, a senior research analyst at digital market data provider Kaiko.
October saw 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.
Bitcoin fell as low as $104,782.88 during the October 10-11 period, after setting a fresh record high just days earlier above $126,000.
"That washout on the 10th, it really reminded people that this asset class is very narrow," said McCarthy. "It's bitcoin and (ether), and even those can still have 10% drawdowns in 15, 20 minutes."
A whirlwind October is set to end with spooked investors unsure of the global monetary policy path in the near term, as the U.S. Federal Reserve pushed back against market bets that it would continue to cut rates this year as the government shutdown blocks crucial economic data.
Read more: Trump-fueled crypto frenzy sparks rush to Wall Street IPOs
Meanwhile, several influential figures have expressed concerns about high valuations in equity markets. JPMorgan Chase CEO Jamie Dimon earlier this month warned of a heightened risk of a significant correction in the U.S. stock market within the next six months to two years.
"Participants remain hesitant as they process what has become the largest liquidation event on record. This caution persists amid ongoing speculation about specific vulnerabilities that may still exist in the system," said Jake Ostrovskis, head of trading firm Wintermute's over-the-counter desk.
Despite its October decline, bitcoin is still up more than 16% so far this year.
Cryptocurrencies have generally enjoyed a boost this year as Trump has embraced digital assets, which has led to the dismissal of a spate of lawsuits against prominent crypto platforms and a shift by Trump's financial regulators to create specialized rules to accommodate digital assets.
