The cryptocurrency market began the week on a bearish note as major tokens including Bitcoin, Dogecoin, and Cardano registered sharp declines amid widespread profit-taking and renewed macroeconomic uncertainty. Meanwhile, gold prices also retreated after China ended tax rebates for certain retailers — a move that could weigh on global bullion demand.
The latest correction caps what has been the worst October for crypto markets since 2015, underscoring growing caution among traders even as overall trading activity remains high.
Major Cryptos Slide Amid Market Fatigue
Bitcoin (BTC) dropped near $106,000 in early Monday trading after failing to hold above $113,000 late last week. Despite robust trading volumes that signal liquidity remains strong, the market’s inability to sustain key resistance levels suggests weakening momentum.
Altcoins suffered heavier losses, with Dogecoin (DOGE) and Cardano (ADA) leading the selloff, both down about 5% over the past 24 hours. Solana (SOL), BNB, and Ethereum (ETH) also recorded declines of up to 4%, while Tron (TRX) traded flat — showing resilience amid the broader downturn.
Market analysts attribute the declines to profit-taking after a brief recovery in late October rather than any single macro catalyst. With no major positive developments to offset the pullback, traders appear to be locking in gains before potential year-end volatility.
“Without new support from Powell, crypto is once again leaning on technicals,” said Alex Kuptsikevich, Chief Market Analyst at FxPro. “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.”
Kuptsikevich noted that while “Uptober” — a historically bullish month for Bitcoin — started strong, it ended with a steep decline as investors rotated away from high-risk positions.
Long-Term Holders Take Profits
Data from Glassnode shows that Bitcoin selling by long-term investors has tripled since June, particularly among those who accumulated BTC near the $93,000 level earlier this year. These early buyers appear to be realizing profits as Bitcoin struggles to maintain momentum above six-figure territory.
Despite the selling pressure, spot trading volumes remain robust, exceeding $300 billion in October — the highest in a year. Analysts say this reflects healthy two-way market activity, where institutional inflows continue to offset profit-taking by long-term holders.
The combination of profit-booking and strong liquidity suggests the market is consolidating rather than entering a prolonged bearish phase. However, traders are increasingly cautious amid uncertainty surrounding global monetary policy and risk appetite.
Cardano and Dogecoin Lead Altcoin Weakness
Among major altcoins, Cardano’s ADA and Dogecoin were the hardest hit. Cardano’s price dipped nearly 5%, extending a two-week downtrend fueled by a slowdown in DeFi activity and limited network growth.
Dogecoin followed closely behind, losing a similar percentage as speculative demand cooled. Analysts suggest that much of DOGE’s recent rally was momentum-driven, making it more vulnerable to profit-taking once Bitcoin’s rally stalled.
The broader altcoin market mirrored this trend, with traders shifting focus toward defensive assets and stablecoins. Sentiment indicators also pointed to a mild increase in fear, though not yet at panic levels.
Gold Pulls Back After China Ends Tax Rebates
In commodities, gold steadied around $4,000 per ounce after an early dip triggered by China’s decision to end tax rebates for certain gold retailers. The move, announced over the weekend, eliminates value-added tax (VAT) offsets for retailers purchasing gold from the Shanghai Gold and Futures Exchanges, potentially reducing demand in one of the world’s largest bullion markets.
The timing of Beijing’s policy shift is significant. Gold had surged to record highs in October, driven by retail demand and central bank accumulation, before losing steam amid signs of tightening liquidity.
Even with the pullback, gold prices remain 50% higher year-to-date, reflecting strong safe-haven demand through a period of macroeconomic and geopolitical uncertainty.
Bitcoin and Gold Correlation Strengthens
Interestingly, Bitcoin and gold — once seen as competing assets — have exhibited increasing correlation in recent months. Both have responded similarly to shifts in global monetary policy, particularly as investors reassess the Federal Reserve’s stance on interest rates.
The Fed’s decision to pause rate hikes and cut by 25 basis points last week was initially expected to boost risk assets. However, the market’s muted reaction suggests investors remain cautious, prioritizing capital preservation over speculative gains.
Analysts believe this growing alignment between Bitcoin and gold reflects a broader narrative — both are being viewed as stores of value in a volatile economic environment. While gold remains the traditional hedge, Bitcoin’s performance amid fluctuating monetary conditions underscores its evolving role in global finance.
What’s Next for Crypto Markets?
Despite the latest downturn, analysts say the market remains structurally strong. Bitcoin’s deep liquidity, increasing institutional participation through ETFs, and strong on-chain fundamentals point to a healthy consolidation phase rather than the start of a bear market.
“Long-term holders taking profits isn’t a bearish sign by itself,” said Rachel Lin, CEO of SynFutures. “It often precedes new cycles of accumulation. The real focus now is whether Bitcoin can reclaim and hold the $110,000–$113,000 zone, which would confirm renewed buying momentum.”
For altcoins like Cardano and Dogecoin, sentiment will likely depend on Bitcoin’s next move. If BTC stabilizes near current levels, capital could rotate back into high-beta assets, reviving short-term rallies across the market.
For now, however, traders appear content to take profits and wait for clearer macro signals before re-entering risk positions.
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