Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The main tokens fell as much as 5% to start the week in the red, continuing the unfortunate run of the last few weeks that resulted in the market. the worst October since 2015.
Bitcoin it was near $106,000 in early trading on Monday after briefly recovering to $110,000 last week. Dogecoin and Cardano’s ADA sank 5%, leading losses among the major tokens. Solana’s SOL, BNB and ether also showed losses of up to 4%, while Tron’s TRX was flat for a period of 24 hours.
The drawdown came without immediate catalysts, indicative of potential profit over the weekend following an uptrend in prices last week. Some traders indicated that the perceived lack of fundamentals in the market further dampened sentiment.
“Without new support from Powell, crypto is once again leaning on technicals,” said Alex Kuptsikevich, market analyst at FxPro, in an email. “Bitcoin’s repeated failure to hold above $113,000 shows waning momentum. The market continues to track lower highs, but the $3.5 trillion total market capitalization area has repeatedly attracted dip-buyers.”
“Perhaps the beginning of a new month will give buyers a boost. In any case, the aura of a historically positive month, called Uptober, lasted only for the first few days, followed by an impressive decline,” added Kuptsikevich.
Meanwhile, long-term holders are increasing sales in response to strength, as Glassnode data shows. Bitcoin sales by long-term investors have tripled since June, as buyers who entered near $93,000 took profits. However, spot trading volume reached $300 billion in October, the highest in a year, signaling strong two-way liquidity.
The golden pullback
Elsewhere, gold settled above $4,000 an ounce on Monday after an early slide triggered by China’s move to end tax rebates for some gold dealers – a policy change that could dent demand in one of the world’s largest bullion markets.
The decision, announced over the weekend, removes the value-added tax for traders who sell gold purchased from the Shanghai Gold and Futures exchanges.
The timing is crucial as gold’s record rally in October, driven 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 haven demand has remained strong through this year’s wave 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 responding to changes in monetary policy and geopolitical stress.
The Fed’s decision to pause tightening and the growing prospect of cheaper capital could eventually revive demand for risk assets, but for now, traders seem to be judging safety and speculation.
