Why is Bitcoin price on track for first red October in seven years?

Bitcoin is down 5.51% this month, which is on track to be the first red October in seven years.

Bitcoin’s October streak is broken. After seven straight years of gains, the world’s top cryptocurrency is set to log its first negative October since 2018. This year, October was marked by heightened macroeconomic uncertainty, which weighed on crypto markets as a whole.

On October 31, Bitcoin (BTC) traded at $110,155, down 5.5% from $122,870 on September 30. What is more, BTC price is down almost 13% from the all-time high of $126,198 on October 6. The likely culprits seem to be profit-taking and macro uncertainty.

For instance, on October 23, a Satoshi-era wallet, with $16 million worth of BTC, activated for the first time in 14 years. This indicates that traders are ready to cash in on BTC’s all-time highs, as experts warn of increased macro risks.

Experts explain why Bitcoin is down this October

Vugar Usi Zade, COO at Bitget, notes the significant outflows from Bitcoin and Ethereum (ETH) ETFs, which lost over $550 million in late October. In commentary shared with crypto.news, he notes that the outflows largely reflect ongoing uncertainty around macroeconomic factors and Fed policy.

Bitcoin’s October decline could also be a sign of structural maturity. According to analysts at TeraHash, Bitcoin’s momentum, while steady, is gradually slowing down. As Bitcoin steadily attracts more capital, the effects on its price are moderated. However, this also works in reverse and should protect BTC from sudden downturns.