The world’s largest cryptocurrency ended October 2025 down about 5%, breaking a seven-year streak of positive October performance. The main cause was a sharp escalation in trade tensions between the United States and China, which led to a major sell-off of risk assets in the crypto market.

Announcements of higher tariffs on Chinese goods and potential U.S. export controls increased investor uncertainty. As a result, Bitcoin experienced one of the largest sell-offs in its history, dropping to a low of $104,782 on October 10–11.

This decline occurred just days after Bitcoin hit a new record above $126,000. Market uncertainty grew further as the U.S. Federal Reserve did not confirm expectations of future interest rate cuts.

Despite the October drop, Bitcoin has gained more than 16% since the beginning of 2025. Overall sentiment remains positive due to improvements in the U.S. regulatory environment, including:

• The closure of several legal disputes involving crypto platforms.

• A shift toward developing clear regulatory frameworks for digital assets.

ORIENT