What are the reasons for Bitcoin's decline in October?

October is recorded as a period when Bitcoin's (BTC) price experienced an unexpected decline. On-chain analysis platform CryptoQuant, which caught the attention of investors with this volatility, provided significant data on the reasons for the drop.

According to CryptoQuant's report, the main reason for the sharp price decline in October was not a global selling pressure, but rather intensive sales from particularly US-based investors. Bitcoin was trading at $111,390 during the opening of the European session on the week of October 31, while it dropped to $106,000 by the end of the US session. However, after the CME closing, the Bitcoin price recovered to $109,000. These data indicate that there was no major global selling wave, but rather the selling pressure was regional and session-based.

Coinbase exchange stands out as one of the most important platforms for institutional investors in the US. Another significant detail in the report was that the Coinbase Premium Gap indicator fell back to -$80. This gap shows that the selling pressure in US exchanges is stronger compared to Asian and European markets. CryptoQuant stated that this situation indicated intense selling pressure from American investors.

Additionally, it is estimated that significant outflows occurred on US spot Bitcoin ETFs, with $262 million on October 29 and $292 million on October 30. This situation indicates that risk-averse institutional investors are distancing themselves from the market. It is emphasized that these sales that occurred during October are not a global weakness but solely a wave of institutional sales from the US, as highlighted by CryptoQuant.

Investors are advised to closely monitor US session movements, Bitcoin ETF flows, and the Coinbase premium as they enter November. These factors are expected to play a significant role in the future course of Bitcoin's price.