Major tokens fell as much as 5% to start the week in the red, continuing the dismal run of the past few weeks that has resulted in the market’s worst October since 2015.
Bitcoin hovered near $106,000 in early Monday trading after briefly regaining $110,000 last week. Dogecoin and Cardano’s ADA sank 5%, leading losses among major tokens. Solana’s SOL, BNB and Ether also showed losses of up to 4%, while Tron’s TRX remained flat over a 24-hour period.
The decline came without immediate catalysts, suggesting potential profit-taking over the weekend after an uptrend in prices last week. Some traders pointed out that the lack of perceived fundamentals in the market has further dampened sentiment.
“Without new support from Powell, crypto is again leaning on technicals,” Alex Kuptsikevich, chief market analyst at FxPro, said in an email. “Bitcoin’s repeated failure to hold above $113,000 shows waning momentum. The market continues to track lower highs, but the total market cap zone of $3.5 trillion has repeatedly attracted dip buyers.”
“Perhaps the start of a new month will give buyers a boost. But the aura of a historically positive month, so-called Uptober, lasted only for the first few days, followed by an impressive decline,” Kuptsikevich added.
Meanwhile, long-term holders are increasing sales in response to strength as shown by Glassnode data. Bitcoin selling by long-term investors has tripled since June as buyers who entered near $93,000 take profits. Still, spot trading volume topped $300 billion in October, the highest in a year, signaling strong two-way liquidity.
Gold withdrawal
Elsewhere, gold stabilized around $4,000 per ounce on Monday after an early drop triggered by China’s move to end tax breaks for certain gold retailers – a shift in policy that could dampen demand in one of the world’s biggest gold markets.
The decision, announced over the weekend, removes VAT credits for retailers selling gold bought from the Shanghai Gold and Futures exchanges.
The timing is crucial, as gold’s record rally in October, fueled by retail frenzy and central bank hoarding, had begun to fade even before Beijing’s announcement.
Despite the pullback, prices remain more than 50% higher year-to-date, suggesting garden demand has remained strong through 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, with both assets reacting to changes in monetary policy and geopolitical stress.
The Fed’s decision to pause tightening and the growing prospect of cheaper capital may eventually revive demand for risk assets, but for now traders appear to be juggling certainty and speculation.
