- Bitcoin risks a “red” October after 18% downturn.
- PlanB, Matthew Sigel comment on market status.
- Institutional flows remain key to Bitcoin recovery.
In October 2025, Bitcoin’s price experienced a substantial 18% drawdown, dropping to $110,000 from an earlier high above $125,000, marking its first potential ‘red’ October in eight years.
The market reacted with concerns over futures liquidations and leverage, impacting Bitcoin and related cryptocurrencies like Ethereum, suggesting a temporary mid-cycle correction rather than a new bear market.
Bitcoin experienced its first potential “red” October since 2017 with an 18% drawdown. Experts emphasized this as a mid-cycle correction rather than a bear market onset. Bitcoin experienced previous historic highs before this downward shift.
Notable figures like PlanB and Matthew Sigel provided insights. They highlighted the changes in Bitcoin’s market structure and liquidity. PlanB suggested Bitcoin may not drop below $100,000, emphasizing support at this level.
The downturn primarily impacted Bitcoin, with related assets showing correlated volatility. Industry leaders view this as a mid-cycle situation. Continued high daily active addresses indicated sustained user engagement amidst the fluctuation.
Financial impacts include cascading liquidations driven by futures leverage, peaking at $52B. Institutional buy-side interest and ETF inflows significantly influenced the market. Experts believe the correction is temporary, not a bear signal.
Historical data show that Bitcoin hasn’t recorded a “red” October since 2017. Analysts argue this downturn reflects typical market corrections rather than a deeper trend shift.
Insiders suggest that institutional interest will continue shaping Bitcoin’s movement. They foresee the current fluctuations as part of a market cycle, driven by leverage rather than underlying asset weakness, with ETF inflows playing a significant role.
Matthew Sigel, Head of Digital Assets Research, VanEck, said: “Leverage flush creates opportunity; futures open interest peaked … cascading liquidations drove Bitcoin’s ~18% drawdown … We view this as a mid-cycle correction, not the start of a bear market.”
