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Bitcoin struggled to maintain momentum Friday, hovering near $110,000 as the world’s largest cryptocurrency faced its first October decline in seven years. The digital asset added just 1.3 percent in the past 24 hours to $109,850, yet remained down 3.9 percent for the entire month despite seasonal trends typically favoring cryptocurrency gains during October.
The lackluster performance defied long-established market expectations for October strength in Bitcoin. The cryptocurrency community has historically referred to October as uptober, reflecting the seasonal pattern where digital assets tend to appreciate during the month. This year’s performance marked a sharp departure from that traditional pattern, underscoring the dominance of macro headwinds over seasonal trading dynamics.
Heightened geopolitical tensions between the United States and China emerged as a primary drag on cryptocurrency demand throughout October. The trade uncertainty contributed to a flash crash earlier in the month, wiping out Bitcoin’s previous record highs and triggering forced liquidations across leveraged trading positions. Subsequent attempts to recover above the $110,000 level have repeatedly failed, suggesting traders remain hesitant to deploy significant capital amid continued uncertainty.
Crypto markets drew a few positive signals from Thursday’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping, though a concrete trade agreement between the two nations appears distant. The lack of immediate resolution on trade matters perpetuates the risk environment that has weighed on Bitcoin and broader cryptocurrencies throughout the month. Markets typically reward clarity and resolve uncertainty premiums that benefit defensive assets over speculative investments like cryptocurrencies.
The Federal Reserve’s communications earlier this week sent hawkish signals that reverberated through cryptocurrency markets. Chair Jerome Powell’s commentary indicating uncertainty about additional rate cuts in December tempered enthusiasm for risk assets. The central bank’s cautious stance, despite the recent 25 basis point rate reduction, suggested the Fed may be pivoting toward a more measured approach to monetary accommodation.
Cryptocurrency investors have typically benefited from expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding digital assets. When central banks signal caution about future rate cuts or hint at longer-term monetary restraint, investor preferences shift toward higher-yielding alternatives. This dynamic contributed materially to October’s underperformance relative to seasonal expectations.
A significant decoupling emerged between Bitcoin and U.S. technology stocks during October. The Nasdaq Composite climbed over 4 percent for the month, driven largely by investor optimism surrounding artificial intelligence capabilities and strong corporate earnings. Major technology companies benefited from expectations of accelerating productivity gains and revenue expansion tied to AI infrastructure investments.
Bitcoin, historically correlated with equity market risk appetite, failed to participate meaningfully in the technology sector’s advance. The divergence suggests that investors directing capital toward technology stocks viewed cryptocurrencies as competing assets rather than complementary positions. This separation indicates that the traditional risk-on narrative may no longer apply uniformly across asset classes.
On-chain metrics and derivatives market positioning revealed that traders have adopted defensive stances regarding Bitcoin. The data indicated widespread aversion toward placing large bets despite price levels near psychological resistance. The persistence of cautious sentiment in both spot and derivatives markets suggests limited institutional appetite to accumulate positions at current levels.
Funding rates in futures markets remained muted, reflecting balanced positioning rather than aggressive long accumulation or short positioning. This equilibrium suggests traders lack conviction regarding near-term direction, with both bulls and bears maintaining measured exposure. The lack of speculative fervor typically associated with crypto rallies indicates that genuine demand remains constrained by macro concerns.
Despite Bitcoin’s tepid price performance, cryptocurrency-related equities performed better Friday. Strategy Inc, the world’s largest corporate Bitcoin holder, delivered stronger-than-expected third-quarter earnings, sending shares up approximately 6 percent. The company benefited substantially from Bitcoin’s previous record highs earlier in the quarter, adding to its sizable digital asset holdings.
Strategy Chair Michael Saylor expressed confidence in Bitcoin’s prospects, forecasting the cryptocurrency would reach $150,000 by the end of 2025. Saylor’s optimistic outlook provided a counterbalance to bearish sentiment driven by macro concerns. His conviction reflects belief that structural tailwinds supporting cryptocurrency adoption will eventually overwhelm near-term cyclical headwinds.
Cryptocurrency exchange Coinbase Global surged more than 8 percent following robust third-quarter earnings results. The company reported transaction revenue of $1.05 billion, more than doubling from $572.5 million in the year-earlier period. Net income surged to $432.6 million, or $1.50 per share, substantially exceeding analyst expectations of $1.06 per share.
Subscription and services revenue, which includes non-trading businesses, climbed 34 percent to $746.7 million during the quarter. The strong performance demonstrated that trading activity and cryptocurrency market interest remained robust despite Bitcoin’s monthly underperformance. Coinbase’s earnings suggest investor demand for cryptocurrency exposure persists, even as price appreciation has stalled.
Broader cryptocurrency prices declined more severely than Bitcoin during October. Ether, the world’s second-largest cryptocurrency, rose 2 percent to $3,853.37 but remained down 7 percent for the month. XRP fell 12.3 percent, while Solana declined 10 percent and Cardano vastly underperformed peers with a 24 percent monthly loss.
BNB emerged as an outlier, set to rise over 7 percent despite October’s challenging conditions. Dogecoin experienced a 20 percent decline for the month, while the Trump-themed memecoin rallied approximately 10.5 percent after gaining ground late in the week. The divergent performance across altcoins suggested that capital reallocation from underperforming assets to perceived value opportunities continued throughout the month.