Bitcoin (BTC) held steady around $110,000 on Friday, showing little sign of recovery as investors grappled with renewed U.S.-China trade tensions and hawkish Federal Reserve signals. The world’s largest cryptocurrency slipped 0.3% to $110,012, extending its October loss to 3.7%, putting an end to the much-hyped “Uptober” rally.
Traders had hoped for seasonal strength in October—historically one of Bitcoin’s best-performing months—but macroeconomic uncertainty and risk aversion overshadowed bullish sentiment. The muted reaction to the meeting between U.S. President Donald Trump and Chinese President Xi Jinping reinforced concerns about weak trade progress.
Meanwhile, the Fed’s cautious tone earlier this week and a surging U.S. dollar weighed on broader crypto appetite. The Nasdaq Composite gained over 4% in October, fueled by artificial intelligence optimism, but Bitcoin remained decoupled from tech stocks.
“Bitcoin’s October weakness signals a shift in market dynamics as investors turn defensive,” said one market strategist. “It’s clear that macro factors, not momentum, are driving the narrative.”
BTC Faces First October Loss Since 2018
Bitcoin’s slide marks its first October decline in seven years, ending a streak of historically strong monthly performances. Analysts say the selloff was accelerated by rising U.S.-China tensions, which triggered a flash crash earlier this month and eroded short-term confidence.
Despite stabilizing above $110,000, on-chain data shows reduced whale activity and low open interest in derivatives, suggesting traders are reluctant to take aggressive positions.
Key factors behind Bitcoin’s October weakness:
- Lack of a concrete U.S.-China trade deal
- Fed’s hawkish tone limiting liquidity
- Declining correlation with tech stocks
- Reduced institutional inflows amid volatility
Analysts note that Bitcoin’s historical “Uptober” momentum may not reappear unless global risk sentiment improves and the Fed signals a more dovish path in the months ahead.
Crypto Stocks and Altcoins Diverge
While Bitcoin drifted sideways, crypto-linked equities saw notable gains. Strategy Inc. (NASDAQ: MSTR), the largest corporate Bitcoin holder, reported better-than-expected Q3 earnings, lifting its shares by 6% in after-hours trading.
Chairman Michael Saylor reiterated his bullish forecast, predicting that Bitcoin could reach $150,000 by late 2025. Similarly, Coinbase (NASDAQ: COIN) posted strong quarterly results driven by rising trading volumes, adding optimism to the sector.
Among altcoins, Ether dropped 1.8% to $3,849, XRP lost 12.6%, Solana fell 11%, and Cardano plunged 24% in October. In contrast, BNB gained 9%, while memecoin $TRUMP rose 9%, outperforming larger peers.
As October closes, the broader crypto market remains defensive, with investors awaiting fresh catalysts—potentially from central banks or regulatory developments—to determine Bitcoin’s next direction.