Bitcoin’s “Uptober” Fizzles as Rate Cut Doubts Spark Crypto Slide

Bitcoin’s long-celebrated “Uptober” rally failed to materialize this year as the world’s leading cryptocurrency extended its decline, falling roughly 15% since reaching a record high earlier this month. The token, which had briefly topped $125,000 in early October, is now hovering near $107,000 as cautious sentiment spreads across global markets.

The drop comes amid growing uncertainty about the Federal Reserve’s next policy move. Hopes for another rate cut in December faded after remarks suggesting that further easing is far from guaranteed. The resulting wave of risk aversion has hit both cryptocurrencies and equities, reversing much of the optimism that had driven markets earlier in the month.

Other major digital assets, including Ether and Solana, have also suffered steep losses in October, sliding about 10% each. Outflows from Bitcoin and Ethereum exchange-traded funds underscored a broader investor retreat, signaling waning confidence in the short-term direction of digital markets.

The downturn has also affected companies that hold significant crypto reserves. Several digital asset treasury firms, which had accumulated large holdings earlier in the year, have begun liquidating portions of their stockpiles to shore up finances or fund share buybacks. Shares of such firms have tumbled sharply, with some losing more than two-thirds of their market value.

Analysts say the weakness reflects a shift away from speculative risk rather than any single trigger within the crypto ecosystem. While digital assets were once touted as a potential hedge against volatility in traditional markets, their recent performance suggests investors are treating them much like other high-risk assets—quick to rise in times of optimism, but equally fast to fall when uncertainty returns.

With October ending on a sour note, the question now is whether Bitcoin can regain momentum heading into the final months of the year—or if the fading “Uptober” glow marks the start of a deeper correction across the crypto landscape.