The government shutdown in the United States that began on October 1st had a significant impact on global markets, including the cryptocurrency sector. The cessation of federal activities due to budget disagreements, coupled with the inability to publish economic data, directly influenced investor behavior. Despite the lack of current data, the Federal Reserve was compelled to continue making monetary policy decisions. This decline in risk appetite triggered a wave of selling in Bitcoin and altcoins, marking October as a pivotal month for cryptocurrency investors.
Bitcoin Ends Seven-Year “Uptober” Streak
According to Cryptorank data, Bitcoin, historically known for its October rallies over the past seven years, concluded October 2025 with losses. The steady rally since April shifted directions due to profit-taking. The U.S. budget crisis caused a psychological break among investors, bringing Bitcoin’s correlation with financial markets back into focus.
As average weekly trading volumes declined, investors chose to remain cautious due to regulatory uncertainties. While market observers anticipated a short-term relief with the government’s reopening, the unresolved regulatory framework limited recovery potential.
Despite Bitcoin’s volatile performance, the cryptocurrency market has evolved into a structure more sensitive to global liquidity flows and U.S. stock performance. This parallelism strengthens the tendency of cryptocurrencies to move in sync with macro cycles.
Ethereum and Other Blockchain Dynamics
Ethereum experienced a sharper decline than Bitcoin throughout the month. Uncertainty regarding regulatory developments became a major factor in determining the direction of altcoins. The absence of potential catalysts like ETF approvals or new legislative initiatives increased price volatility. During this period, BNB Chain reached its annual peak of 58 million active addresses, collecting $70.7 million in transaction fees due to perpetual futures trading and memecoin influx.
Solana maintained its lead in transaction volume, reaching a DEX volume of $149 million, although active addresses declined. Meanwhile, the Base network led in token launches, surpassing $10 billion in locked asset value. On the Avalanche front, Visa integration and BlackRock-supported asset tokenization projects provided fresh momentum to the ecosystem.
These Blockchain activities demonstrate that cryptocurrencies are not only focused on price but also growing in terms of usage intensity. Even under the shadow of interest rate cuts and macro uncertainties, Blockchain networks continued to advance through their unique dynamics.