Dogecoin, Cardano Lead Selloff on Profit-Taking, Gold Pulls Back as China Ends Tax Rebate
Major tokens slid as much as 5% to begin the week in red, continuing the dismal run from the past few weeks that has resulted in the market’s worst October month since 2015.
Bitcoin BTC$107,674.56 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 ETH$3,734.84 also showed losses of up to 4%, while Tron’s TRX remained flat over a 24-hour period.
The drawdown came with no immediate catalysts, indicative of potential profit-taking over the weekend following 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 once again leaning on technicals,” said Alex Kuptsikevich, chief market analyst at FxPro, in an email. “Bitcoin’s repeated failure to hold above $113,000 shows waning momentum. The market continues to trace lower highs, but the $3.5 trillion total market capitalization zone 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, so-called Uptober, lasted only for the first few days, followed by an impressive decline,” Kuptsikevich added.
Meanwhile, long-term holders increase sales in response to strength, as Glassnode data shows. 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.
The gold pullback
Elsewhere, gold steadied around $4,000 per ounce on Monday after an early slide triggered by China’s move to end tax rebates for certain gold retailers — a policy shift that could dent demand in one of the world’s largest bullion markets.
The decision, announced over the weekend, removes value-added tax offsets for retailers selling gold purchased from the Shanghai Gold and Futures exchanges.
The timing is crucial as gold’s record-breaking rally in October, driven by retail frenzy and central bank accumulation, had begun to fade even before Beijing’s announcement.
Despite the pullback, prices remain more than 50% higher year-to-date, suggestive of how haven demand has remained strong through this year’s waves of macro and geopolitical tension.
As such, the correlation between bitcoin and gold — once viewed as competing hedges — has strengthened in recent months, with both assets responding to shifts 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 appear to be juggling safety and speculation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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