The new trading week began under a cloud of red across the crypto landscape, led by sharp pullbacks in Dogecoin and Cardano as traders locked in profits after last week’s fleeting rebound. Bitcoin, which briefly reclaimed the $110,000 mark, slipped back to $106,000 early Monday, extending the subdued tone that has defined markets since late October.
The rest of the majors followed suit. Dogecoin and ADA dropped about 5%, while Solana, BNB, and Ether fell between 3% and 4%. Only Tron’s TRX managed to hold its ground, reflecting a modest rotation of liquidity toward yield-bearing assets. The correction capped what’s now the worst October for crypto since 2015, a sobering contrast to the “Uptober” optimism traders had hoped for.
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No Single Catalyst — Just a Market Taking a Breather
Unlike the panic-driven selloffs of past cycles, this downturn had no major trigger — no new regulations, liquidations, or policy shocks. Instead, it reflects a natural cooling phase, as investors take profits after failing to break through key resistance levels.
“The market is now relying purely on technicals,” noted Alex Kuptsikevich, Chief Market Analyst at FxPro. “Bitcoin’s repeated rejection above $113,000 shows fading momentum. We continue to see lower highs, but the $3.5 trillion total market cap level keeps attracting dip-buyers.”
That number has become a psychological anchor. Liquidity pools around it, buyers step in, but rarely stay long — flipping gains in short bursts, keeping the overall structure range-bound and fragile. It’s a pattern more defined by caution than conviction.
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Long-Term Holders Trim Positions as Volumes Stay Strong
Blockchain data adds depth to the story. Glassnode reports that selling by long-term Bitcoin holders has tripled since June, with many of those investors having accumulated near $93,000 now taking profits as prices retest multi-month highs.
This isn’t panic selling — it’s strategic distribution into strength. Despite this uptick in supply, trading activity remains robust. October’s spot trading volume surpassed $300 billion, the highest in a year, showing that markets are active, but with shorter time horizons and less conviction.
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Macro Winds: The Fed Pauses, but Risk Appetite Lags
The broader macro backdrop hasn’t helped. While the Federal Reserve’s pause in rate hikes offered temporary relief, sticky inflation and elevated yields continue to restrain risk sentiment. Institutional traders remain focused on capital preservation, leaving crypto caught in a tug-of-war: too volatile for safety-seekers, too uncertain for momentum chasers.
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Gold’s Parallel Pullback — And the China Factor
Even traditional safe havens reflected the same fatigue. Gold, which had surged to record highs through October, slid back to around $4,000 per ounce after China ended tax rebates for select gold retailers. The policy removes VAT offsets for bullion sold through Shanghai exchanges — a move likely intended to cool speculative demand after a 50% year-to-date rally.
While the decision triggered a brief pullback, gold remains the year’s standout performer, underscoring how investors continue to rotate toward tangible hedges amid global rate and liquidity uncertainty.
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Bitcoin and Gold: Rivals Turned Sympathetic Movers
Interestingly, Bitcoin and gold are moving more in sync than ever. Their correlation has tightened as both respond to real yields and liquidity cycles. When rates rise, both assets dip. When macro stress builds or liquidity expands, both attract inflows. It’s less a competition, more a shared reflection of the same macro heartbeat.
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Markets Are Rotating, Not Retreating
The larger message behind the red candles is rotation, not retreat.
Crypto traders are trimming risk, not abandoning it. Long-term holders are taking profits, not capitulating. Gold investors are pausing, not exiting. These are the behaviors of mature markets digesting gains, not collapsing under pressure.
Bitcoin’s immediate outlook hinges on how macro data unfolds. A dovish Fed or softer inflation could reignite risk appetite; persistent high yields may extend this range-bound grind. For now, $113,000 remains the key resistance, and the $3.5T market cap remains the support to watch.
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The Calm Between the Cycles
As “Uptober” gives way to a quieter, more selective November, the market is neither broken nor euphoric — it’s simply catching its breath. Liquidity remains healthy, participation steady, and structural support intact.
Gold’s cooling and Bitcoin’s hesitation both tell the same story:
Markets are waiting, not quitting.
Profit-taking isn’t weakness — it’s the mark of maturity. And sometimes, the strongest signal a market can send is its willingness to pause, reset, and prepare for what’s next.
