Major tokens slipped as much as 5% to start the week in the red, continuing the grim streak of recent weeks that culminated in the market’s worst October since 2015.
Bitcoin was hovering near $106,000 in early trading Monday after briefly regaining $110,000 last week. Dogecoin and Cardano’s ADA fell 5%, leading to losses among major tokens. SOL, BNB, and Solana Ether also posted losses of up to 4%, while Tron’s TRX remained stable over a 24-hour period.
The decline occurred without an immediate catalyst, indicating potential profit-taking over the weekend following an upward price trend last week. Some traders pointed out that the lack of perceived fundamentals in the market further dampened sentiment.
“Without Powell’s new support, crypto is relying on technical again,” Alex Kuptsikevich, chief market analyst at FxPro, said in an email. “Bitcoin’s repeated failure to hold above $113,000 shows a decline in momentum. The market continues to chart lower highs, but the $3.5 trillion total market cap area has repeatedly attracted dip buyers.”
“Perhaps the start of a new month will give buyers a boost. However, the aura of a historically positive month, called Uptober, lasted only the first days, followed by an impressive decline,” Kuptsikevich added.
Meanwhile, long-term holders are increasing their sales in response to the strength, Glassnode data shows. Bitcoin sales by long-term investors have tripled since June, with buyers grabbing nearly $93,000 in profits. Still, spot trading volume topped $300 billion in October, the highest in a year, a sign of strong two-way liquidity.
The withdrawal of gold
Elsewhere, gold stabilized around $4,000 an ounce on Monday after an early decline triggered by China’s decision to end tax cuts for some gold retailers – a policy shift that could hurt demand in one of the world’s biggest gold markets.
The decision, announced over the weekend, removes value-added tax offsets for retailers selling gold purchased on the Shanghai gold and futures exchanges.
The timing is crucial because gold’s record rise in October, driven by retail frenzy and central bank accumulation, had begun to fade even before Beijing’s announcement.
Despite this decline, prices remain more than 50% higher year-to-date, suggesting how demand for safe-haven assets has remained strong despite this year’s waves of macro and geopolitical tensions.
As such, the correlation between bitcoin and gold – once seen as competing hedges – has strengthened in recent months as both assets react to monetary policy changes and geopolitical tensions.
The Fed’s decision to pause its tightening and the growing prospect of cheaper capital could eventually reignite demand for risky assets, but for now, traders appear to be juggling safety and speculation.
