Major tokens fell as much as 5% to start the week in the red, continuing the dismal streak of recent weeks that has resulted in the market’s worst October since 2015.
bitcoin was around $106,000 in early trading on Monday after briefly recovering to $110,000 last week. Dogecoin and Cardano’s ADA plunged 5%, leading losses among major tokens. SOL, BNB and Solana Ether also showed losses of up to 4%, while Tron’s TRX remained stable over a 24-hour period.
The drop occurred without immediate catalysts, indicating possible profit-taking over the weekend following an upward trend in prices last week. Some traders noted that the lack of perceived fundamentals in the market has further weakened sentiment.
“Without new support from Powell, cryptocurrencies are once again reliant on technicals,” Alex Kuptsikevich, chief market analyst at FxPro, said in an email. “Bitcoin’s repeated failure to stay above $113,000 shows waning momentum. The market continues to draw lower highs, but the $3.5 trillion total market cap zone has repeatedly attracted dip buyers.”
“Perhaps the beginning of a new month will give a boost to buyers. However, the aura of a historically positive month, the so-called Uptober, lasted only the first few days, followed by an impressive drop,” added Kuptsikevich.
Meanwhile, long-term holders increase sales in response to the strength, as Glassnode data shows. Bitcoin sales by long-term investors have tripled since June, as buyers who entered near $93,000 made profits. Still, spot trading volume surpassed $300 billion in October, the highest level in a year, indicating strong liquidity in both directions.
The decline of gold
Elsewhere, gold stabilized around $4,000 an ounce on Monday after an initial drop triggered by China’s decision to end tax rebates for certain gold retailers, a policy change that could hit demand in one of the world’s largest bullion markets.
The decision, announced over the weekend, eliminates value-added tax offsets for retailers selling gold purchased on 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 how safe-haven demand has remained strong through this year’s waves of macro and geopolitical tension.
As such, the correlation between bitcoin and gold, once seen as competitive hedges, has strengthened in recent months, with both assets responding to changes in monetary policy and geopolitical stress.
The Federal Reserve’s decision to suspend tightening and the growing prospect of cheaper capital could eventually revive demand for risk assets, but for now, traders appear to be juggling safety and speculation.
