Bitcoin, XRP, and other cryptocurrencies rose early Friday, but the moves did little to stop October being a difficult month for digital assets.
The price of Bitcoin
It has historically been a great month for Bitcoin—the digital asset has jumped an average of 21.5% in October between 2015 and 2024.
Despite the recent slump, it remains 18% higher in 2025.
Crypto exchange-traded funds are showing “signs of investor caution,” Vugar Usi Zade, COO of crypto exchange company Bitget said Friday. “This transition certainly reflects growing macro anxiety, fueled by persistent inflation, elevated interest rates, and uncertainty around the Federal Reserve’s policy path,” he added. Zade expects the market to remain sensitive to macro data releases in the next few weeks.
The Fed cut interest rates by a quarter point earlier this week, but Chair Jerome Powell said another cut in December is “not a foregone conclusion. Far from it.”
On the flip side, if upcoming data support the case for another cut by the end of the year then Bitcoin and other digital assets could enjoy a significant rebound. One problem is the ongoing government shutdown, which has delayed key data releases.
Cryptocurrencies and other risky assets tend to benefit from lower borrowing costs as it makes them more attractive relative to lower-yielding investments, such as bonds.
It’s still been a good year for digital assets, but the Fed could determine if they end 2025 with a rally or sustained selling pressure.
