Bitcoin has closed its weakest October in more than a decade.
The price finished the month down 7.32%, its worst October since 2014, when it fell 12.6%, according to data from CoinGlass. It ranks as the fourth-worst October on record, behind 2011, 2014 and 2012.
October has historically been one of Bitcoin’s strongest months, earning it the nickname “Uptober” among traders. This year, the month ended with a run of pressures arriving at once.
ETF investors head for the exits
US spot Bitcoin ETFs recorded net outflows of $643.2 million on Friday, their largest single-day outflow of October, according to fund flow data.
That one day of selling wiped out a four-day run of inflows worth about $441 million. The funds ended the week down about $202 million and closed October with net outflows of about $516 million.
Thursday’s small inflow of $17.2 million came before the Binance hack was discovered, making Friday the first full trading day for ETF investors to respond.
The selling was not limited to Bitcoin. Ethereum ETFs lost $155.7 million on Friday, extending a five-day outflow streak to about $431 million, and ended October with outflows of roughly $1.61 billion. Solana ETFs posted their fifth straight day of outflows.
Even after October’s selling, US spot Bitcoin ETFs have taken in about $57.4 billion in net inflows since launching in January 2024.
The Binance hack
Attackers began draining funds from Binance on Thursday afternoon, US time, after US stock markets had closed. Blockchain analysts estimate the theft at about $6.3 billion, the largest crypto hack on record.
Binance says it will cover all losses from company funds and an emergency reserve. Stablecoin issuers Tether and Circle have frozen more than $2.3 billion in stolen stablecoins.
Bitcoin fell about 4% on Friday to around $76,400, and more than $1.3 billion in leveraged positions were liquidated.
Tech and gold slide too
The sell-off was not confined to crypto. The Nasdaq Composite fell about 2.5% on Friday after chipmaker Intel warned that fourth-quarter sales would be weaker than expected, sending its shares down nearly 30% at the open.
Gold also fell, dropping as low as $3,891 an ounce, its weakest level in a year.
Trading firm QCP Capital said the mix of macro conditions, fears over the tech sector and the Binance hack had “created a period of heightened market repricing.”
The backdrop
The Federal Reserve held interest rates at 3.75% to 4% on Wednesday, with two officials voting for a rate rise. US midterm elections follow on 3 November.
What happens next
Bitcoin was trading around $77,500 on Saturday, down about 3.3% on the week.
November has historically been one of Bitcoin’s better months, with a median return of about 10.3% according to CoinGlass, though past performance is no guide to what comes next. Binance reopening withdrawals, its promised proof of reserves and this week’s US elections are the next tests for the market.
