Bitcoin fell by about 5 %

The beginning of the month promised much: Bitcoin was holding above the mark of $108,000, and market sentiment was optimistic.

Influencers on Twitter (X) talked about the approaching "new surge" and testing the zone of $120,000 — $130,000.

It seemed that everything was aligning: approval of new ETFs, institutional flows, stable mining after the halving.

However, closer to the middle of the month, the situation changed sharply.

The BTC rate began to decline — first gradually, then faster, until it reached $102,000, and on some platforms, it even broke the psychological level of $100,000.

This marked the first negative October in the last seven years — since 2018, Bitcoin had not shown a negative dynamic during this period.

📉 Why the market "broke"

There turned out to be several reasons, and they all converged at once.

1. Strong dollar and high bonds

The rise in the yield of 10-year U.S. bonds above 5 % became a catalyst for capital flight from risky assets.

For funds, this is a signal: why hold volatile crypto if you can earn guaranteed interest without risk?

Against this backdrop, the dollar index DXY rose above 108, and Bitcoin, as an asset denominated in dollars, faced natural pressure.

2. The stock market also declined

S&P 500 and Nasdaq showed the worst performance since April — due to weak corporate reports and new inflation data.

And although crypto has long lived its own life, it is still sensitive to global liquidations.

Investors began to "tighten their belts" — reducing credit positions and locking in profits.

3. Outflow of liquidity from Asia

After the tightening of cryptocurrency trading rules in South Korea and Hong Kong, volumes on regional exchanges sharply declined.

The decrease in Asian demand is noticeable: according to Kaiko, nighttime volumes of BTC/USDT fell by almost 15 % compared to September.