According to data from CoinGecko, Bitcoin ended October at a lower level for the first time since 2018, breaking a seven-year growth streak in a month that traders had previously considered a free profit season.
Bitcoin ended the month with a decline of about 5% due to weak risk sentiment and leveraged positions being wiped out, even after reaching a new record peak.
The market is still affected by global instability as Donald Trump announced a 100% tariff on imports from China and tightened technology exports for AI, EV, and robots.
Record liquidation reduces cryptocurrency trading.
Bitcoin plummeted from 126,000 to 104,782 USD in two days on 10–11/10. According to Adam McCarthy (Kaiko), the volatility shows that the crypto market remains highly concentrated, as even BTC and ETH can drop 10% in a matter of minutes. This crash wiped out leveraged positions, forcing traders to reduce risk and leading to a decline in market liquidity.
Fed dismisses expectations of interest rate cuts due to lack of economic data from the government shutdown, causing investors to be cautious and large cash flows to remain on the sidelines.
Concerns spread to the traditional market as JPMorgan CEO Jamie Dimon warns that U.S. stocks could face significant corrections in the next 6–24 months.
According to Jake Ostrovskis (Wintermute), a cautious sentiment still prevails after the record liquidation event and concerns about systemic risk.
Bitcoin remains active this year as the overall market stays at high levels.
Despite a decline in October, Bitcoin has still risen over 16% year-to-date, reflecting confidence in Trump's crypto-friendly stance.
S&P 500 also rose 16.3% (over 17% including dividends), while Vanguard's 60/40 portfolio gained 13.1%, far exceeding the long-term average.
S&P has gone 130 days without a 5% drop – the longest streak in 44 years and history shows that each 5% pullback is usually only temporary before the market continues to rise.