Bitcoin, the most popular cryptocurrency, is down by 7% so far this year. It’s worth noting that Bitcoin has only ended the year with losses three times before – in 2014, 2018, and 2022. Those years were marked by bear markets, which are periods when asset prices generally go down for a long time. However, 2025 hasn’t been classified as a bear market year. This has led experts and analysts to wonder if there’s a deeper problem causing Bitcoin’s struggles.
One event that stands out is October 10, which saw Bitcoin’s price drop by 10% in a single day. This resulted in Bitcoin losing over $12,000 in value – one of the biggest losses the cryptocurrency market has seen. An analyst who goes by the name ‘Max Crypto’ questioned the situation, saying that it feels like large, powerful players are continuously selling off Bitcoin, making it difficult for its price to recover.
“WTF happened on October 10th? Exchanges are saying they are fine. Market makers are saying they are fine,” Max tweeted. “This feels like a repeat of the Luna event when everyone said things were okay, but the market collapsed completely.”
So, what actually happened on October 10? Some experts say it was a critical moment for the cryptocurrency world. Investor George Bodine referred to the event as ‘Crashtober,’ a term combining “crash” and “October.” He commented that even though gold and silver showed positive momentum during that time, Bitcoin faced significant losses. According to Bodine, Bitcoin has strong fundamentals this year – meaning its overall value and purpose remain solid – but October 10 revealed issues still affecting the market.
Another crypto analyst, Scott Melker, agreed that October 10 was more than just a bad day for Bitcoin. He said the crash exposed deeper issues in the market that haven’t been fixed, adding to the ongoing struggles of cryptocurrency prices today. Melker explained that liquidity, or how easily assets like Bitcoin can be bought and sold without affecting their price, has become a major problem. Liquidity is limited right now, and traders are being very cautious. This makes the market more unstable than before.
Affected by Bitcoin’s weakness, altcoins – cryptocurrencies other than Bitcoin – have also struggled. When Bitcoin loses value, altcoins don’t seem to bounce back as they usually would. People appear to be taking money out of the whole crypto market, instead of reinvesting it into other cryptocurrencies. This is different from the usual healthy market behavior.
Melker also suggested that October 10 created a psychological shift in traders and investors. It reminded everyone that the crypto market can suddenly crash, leading to changes in behavior. People may be less confident in investing or trading, and this fear could stay around for a long time. Until liquidity and trader involvement improve again, any rallies, or periods when prices rise, will feel weak. On the other hand, selloffs, or periods when prices drop, will feel faster and harder than before.
Not all analysts see the October 10 event as completely negative, though. An expert known as ‘CrediBULL Crypto’ argued that nothing was fundamentally broken. They described the event as a massive ‘deleveraging’ event – a moment when traders reduce their borrowed investments. Deleveraging tends to decrease risks in the system, although it also makes market activity slower for a while.
‘CrediBULL Crypto’ believes that if Bitcoin’s price stabilizes now and starts going back up, traders will likely return to the market, increasing activities like ‘open interest.’ Open interest refers to the number of trades or contracts still active and without being completed or expired. They also mentioned that having less leverage in trading could actually be a good thing. Less leverage might make future cryptocurrency rallies more sustainable – meaning price rises will likely last longer this time.
As of now, Bitcoin is struggling to stay above $87,000 in value. This year’s overall performance for Bitcoin highlights how challenges like the October crash can affect cryptocurrency markets in significant ways, leaving traders and investors uncertain about what’s next.