Bitcoin has always been seen as a strong and exciting digital currency. For many years, especially since 2018, the month of October had been very special for Bitcoin traders. They often believed October brought good luck because Bitcoin usually went up during this time. But this year, things turned out differently. Instead of rising, Bitcoin fell, breaking its seven-year winning streak for October. This sudden change surprised many people and made them wonder what was happening in the world of cryptocurrencies.
Bitcoin, which is the biggest and most famous cryptocurrency in the world, dropped almost 5% in October. This happened because the market became shaky and many investors felt scared or unsure about the future. When investors are not confident, they usually avoid risky things, and cryptocurrencies are considered risky. People start selling instead of buying, and that pushes prices down. This is exactly what happened to Bitcoin this month.
A research analyst named Adam McCarthy from the digital market data company Kaiko explained the situation clearly. He said that 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.” This means that Bitcoin started the month strong, just like gold and the stock market, but when people started feeling unsure, they didn’t rush to buy Bitcoin again. They stayed careful, and that affected the price.
One of the biggest reasons for this sudden fall was a huge announcement by U.S. President Donald Trump. He declared a 100% tariff on Chinese imports and even talked about putting limits on exporting important software. This created fear in the global market and led to the largest cryptocurrency liquidation ever seen in history. A liquidation means many people were forced to sell their crypto suddenly, which caused the price to drop very fast. It was one of the most dramatic moments of the year for crypto traders.
During October 10th and 11th, Bitcoin’s price dropped sharply. It fell all the way to $104,782.88, even though it had reached a new record just days earlier by crossing $126,000. This was a huge fall in a very short time. Adam McCarthy explained how shocking this was when he said, “That washout on the 10th, it really reminded people that this asset class is very narrow,” and he added, “It’s bitcoin and (ether), and even those can still have 10% drawdowns in 15, 20 minutes.” His words show that even the biggest cryptocurrencies can change very quickly, which can be scary for investors.
The end of October brought even more confusion to the market. Many people were unsure about the future of global economic policies, especially because the U.S. Federal Reserve did not agree with the market’s expectation that it would continue cutting interest rates. On top of that, the U.S. government shutdown affected the release of important economic data, making it even harder for people to predict what would happen next. When investors don’t know what to expect, they often step back and avoid taking risks.
Some well-known financial leaders also warned that the stock market might be too expensive right now. One of them was Jamie Dimon, the CEO of JPMorgan Chase. Earlier this month, he warned that the U.S. stock market could face a big correction anytime in the next six months to two years. News like this makes people even more nervous, because when the stock market becomes weak, many other financial areas also get affected, including cryptocurrencies.
Jake Ostrovskis, who works at Wintermute’s over-the-counter trading desk, explained the cautious feeling in the market. He said, “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.” His statement shows that traders are still worried that there might be more hidden problems in the system. Even though the big sell-off is over, the fear has not completely gone away.
Even after a tough month, Bitcoin is still doing better this year compared to last year. It has risen more than 16% overall in 2025, which means that despite October’s fall, the currency has still grown across the year. Many people believe this rise happened partly because Trump has been more supportive of digital assets. Some lawsuits against major crypto companies were dropped, and his financial officials have been working on special rules that make it easier for digital assets to fit into the system. This gave crypto traders some confidence earlier in the year.
Still, October’s fall has reminded everyone that the crypto world can change very quickly. One day the prices can be at a record high and the next day they can drop sharply. Investors have to be prepared for sudden changes and must not expect constant growth. This month was especially rough because of world politics, financial worries, and unexpected decisions that affected global trade.
The story of Bitcoin this October teaches an important lesson. Even strong things can become weak if the world around them becomes unstable. Bitcoin did not fall because of any major problem in the technology itself. It fell because people became scared, uncertain, and careful. Fear is powerful, and in financial markets, it can spread very fast.
For beginners or young readers who are trying to understand this, the idea is simple: Bitcoin is like a roller coaster. Sometimes it goes up, sometimes it goes down, and sometimes the fall is sudden and surprising. This year, October was one of those surprising moments.
As the year continues, traders and investors will be watching carefully. They want to know whether Bitcoin will bounce back or continue to struggle. Many believe the future of cryptocurrency is still bright, but they also understand that big ups and downs are part of the journey.
