New York, USA – Bitcoin, the world’s largest cryptocurrency, is on track to post a monthly loss in October for the first time since 2018, breaking a seven-year streak that had made the month historically favorable for crypto traders. The digital asset is set to record a nearly 5% decline for the month, reflecting broader market jitters and muted investor risk appetite.

October’s downturn coincided with heightened volatility in global markets. Cryptocurrencies initially tracked gold and stocks near all-time highs, but the mood shifted sharply after U.S. President Donald Trump announced a 100% tariff on Chinese imports and threatened export controls on critical software. This triggered the largest cryptocurrency liquidation in history, sending Bitcoin to a low of $104,782.88 on October 10-11, just weeks after reaching a record high above $126,000.

“That washout on the 10th really reminded people that this asset class is very narrow,” said Adam McCarthy, senior research analyst at digital market data provider Kaiko. “It’s Bitcoin and Ethereum, and even those can experience 10% drawdowns in just 15 to 20 minutes.”

Market Volatility and Investor Sentiment

The sharp sell-off highlighted Bitcoin’s sensitivity to geopolitical and economic shocks, as well as the broader uncertainty in global financial markets. Investors have been closely watching the U.S. Federal Reserve, which signaled a slowdown in rate cuts amid a government shutdown that blocked key economic data. Additionally, warnings from JPMorgan Chase CEO Jamie Dimon about potential corrections in U.S. equity markets contributed to investor caution.

Jake Ostrovskis, head of Wintermute’s over-the-counter trading desk, noted:

“Participants remain hesitant as they process what has become the largest liquidation event on record. This caution persists amid speculation about vulnerabilities that may still exist in the system.”

Bitcoin’s Performance in 2025

Despite the October setback, Bitcoin remains up more than 16% year-to-date, reflecting strong interest in digital assets overall. The cryptocurrency market has benefited from a broader embrace by influential figures and regulatory support, including the dismissal of lawsuits against prominent crypto platforms and the creation of specialized rules for digital assets under Trump-aligned financial regulators.

While October may have ended a historical streak of gains, analysts suggest that Bitcoin and other major cryptocurrencies continue to offer long-term growth potential, albeit with persistent volatility that investors must carefully navigate.