October is traditionally a month that brings significant gains for Bitcoin, earning it the nickname “Uptober.” However, this year has marked a departure from that trend, with Bitcoin experiencing a 4% decline over the past 30 days, settling at nearly $110,000 by Halloween. Ethereum, the second-largest cryptocurrency, fared worse, dropping approximately 10% to around $3,900.
Market strategist Joel Kruger from LMAX Group remarked on the disappointing performance of Bitcoin this October, noting that it is the fourth worst October for the cryptocurrency since 2013, and the most challenging in the past seven years. Interestingly, Bitcoin failed to outperform the S&P 500 index, which saw an increase of roughly 2.3% during the same period.
The downturn in the cryptocurrency market can be attributed in part to cautious remarks from Federal Reserve Chair Jerome Powell. In a recent press conference, Powell announced a quarter-point reduction in interest rates, suggesting it might be the last adjustment for 2025, signaling a potential pause in monetary easing. He expressed a growing sentiment among policymakers to wait for a full economic cycle before making further moves.
Despite ending the month on a low note, Bitcoin started October on a high. The cryptocurrency reached a record high of nearly $124,000 on October 3, which generated enthusiasm among traders. One crypto enthusiast on X proclaimed, “Uptober is here now. Don’t sell too early. We’re about to get rich!” However, the euphoria was short-lived as the market experienced a significant crash on October 10, wiping out over $19 billion in positions in what was labeled the largest liquidation event tracked by CoinGlass.
This crash coincided with heightened tensions following former President Donald Trump’s announcement of a potential 100% tariff on China, although he later softened his stance. While this resulted in stabilization of crypto prices, they did not regain the highs seen earlier in the month.
Looking ahead, Kruger remains optimistic about the prospects for Bitcoin in the coming months. He noted that historically, the fourth quarter tends to be a strong period for cryptocurrency performance. “We’re still looking for a potential push toward record highs in both Bitcoin and ETH into year end,” he said, indicating a potential rebound as the year draws to a close.
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