Major cryptocurrencies, including Bitcoin, experienced significant declines in October, marking the worst month since 2015, driven by profit-taking from long-term investors and Bitcoin's failure to sustain above $113,000, despite robust trading volumes. Concurrently, gold prices pulled back after China ended tax rebates for certain retailers, a policy shift expected to dent demand in a major market, though gold remains up over 50% year-to-date due to persistent haven demand. Both Bitcoin and gold are exhibiting increased correlation, reacting to global economic shifts and monetary policy.
Major cryptocurrencies, including Bitcoin, experienced a significant selloff, marking the worst October since 2015, with Bitcoin failing to sustain above $113,000. This decline is attributed to profit-taking by long-term investors, whose selling activity has tripled since June from those who bought near $93,000. Despite bearish sentiment, October saw robust spot trading volumes exceeding $300 billion, the highest in a year, indicating strong market liquidity. Concurrently, gold prices pulled back, stabilizing around $4,000 per ounce, following China's decision to end tax rebates for certain gold retailers. This policy shift is expected to dent demand in a key market, though gold remains over 50% higher year-to-date, reflecting persistent haven demand amid macro and geopolitical tensions. A notable trend is the increased correlation between Bitcoin and gold, both assets now responding to global economic shifts, monetary policy, and geopolitical stress. The Federal Reserve's recent $29.4 billion liquidity injection, the largest since 2020, aimed to ease banking system concerns and support risk assets like Bitcoin, though it is a short-term measure not indicative of quantitative easing.
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Overall Sentiment
moderately negative
Sentiment Score
-0.50
Ticker Sentiment
