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Bitcoin (BTC), the largest cryptocurrency by market capitalization, is headed for its worst October performance since 2018 amid heightened market volatility and as investors’ risk appetite turned squeamish during the month.
At mid-day on Oct. 31, Bitcoin had fallen 3.7% during the month, on pace for its worst October since 2018 when it declined 4.3%, according to market data. The poor performance is surprising as October is typically the best month of the year for crypto. So good, in fact, that crypto analysts and investors have labeled the month “Uptober.” But not this year.
Bitcoin rose an average of 21.5% in October between 2015 and 2024. But this year has been uncharacteristically bad for BTC and other digital assets. Analysts attribute the decline this October to factors ranging from growing market volatility to a move away from risk assets and a recovery in the U.S. dollar.
Crypto also got knocked after the U.S. Federal Reserve cut interest rates 25 basis points on Oct. 29, but Chair Jerome Powell said another cut in December is “not a foregone conclusion. Far from it.” Crypto and other risk assets tend to benefit from lower borrowing costs.
However, despite the slump over the past month, Bitcoin is up 18% on the year, matching the gain in the benchmark S&P 500 index.
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 4.02% in the last 12 weeks.
