Market Selloff Intensifies as Profit-Taking Takes Hold
Major cryptocurrencies, including Bitcoin, Dogecoin, and Cardano, slid up to 5% to start the week, extending a dismal run that made October the worst month for the market since 2015. Bitcoin hovered near $106,000 after briefly reclaiming $110,000 last week, while Dogecoin and Cardano's ADA led losses with 5% declines. Other tokens like Solana's SOL, BNB, and Ether also dropped up to 4%, with Tron's TRX remaining flat over 24 hours.
Profit-Taking and Waning Momentum Drive Declines
The drawdown lacked immediate catalysts, pointing to profit-taking after recent price gains. Analysts noted that without new fundamental support, the market is leaning on technicals. Alex Kuptsikevich, chief market analyst at FxPro, highlighted Bitcoin's repeated failure to hold above $113,000 as a sign of waning momentum, with the market tracing lower highs. Despite this, the $3.5 trillion total market cap zone has attracted dip-buyers, and the start of a new month could offer a boost, though the historically positive 'Uptober' effect faded quickly.
Long-Term Investors Increase Sales
Data from Glassnode shows that bitcoin selling by long-term investors has tripled since June, as those who bought near $93,000 take profits. However, spot trading volume in October topped $300 billion, the highest in a year, indicating strong two-way liquidity.
Gold Pulls Back Amid Policy Shifts
Gold steadied around $4,000 per ounce after an early slide triggered by China's decision to end tax rebates for certain gold retailers. This policy shift could dent demand in one of the world's largest bullion markets, removing value-added tax offsets for sales from Shanghai exchanges. Gold's record rally in October, driven by retail frenzy and central bank accumulation, had already begun to fade, but prices remain over 50% higher year-to-date, reflecting persistent haven demand.
Strengthening Correlation Between Bitcoin and Gold
The correlation between bitcoin and gold has strengthened in recent months, with both assets responding to shifts in monetary policy and geopolitical stress. The Fed's pause on tightening and prospects for cheaper capital might eventually revive risk asset demand, but traders are currently balancing safety and speculation.
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