Cryptocurrency and Gold Markets Experience Declines Amid Profit-Taking and Policy Changes

Major cryptocurrencies experienced declines on Monday, with Bitcoin falling below $108,000, marking a 2.97% decrease from the previous close. Dogecoin and Cardano's ADA led the losses among major tokens, each sinking approximately 5%. Solana's SOL, BNB, and Ethereum also showed losses of up to 4%, while Tron's TRX remained relatively stable over a 24-hour period.

The downturn appears to be driven by profit-taking following recent gains. Alex Kuptsikevich, chief market analyst at FxPro, noted, "Without new support from Powell, crypto is once again leaning on technicals. 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."

In the gold market, prices steadied around $4,000 per ounce after an early slide triggered by China's decision to end tax rebates for certain gold retailers. The policy change, effective November 1, removes value-added tax offsets for retailers selling gold purchased from the Shanghai Gold Exchange or the Shanghai Futures Exchange. This move is expected to increase costs for consumers and potentially dampen demand in one of the world's largest bullion markets.

Despite the pullback, gold prices remain more than 50% higher year-to-date, indicating strong haven demand amid ongoing macroeconomic and geopolitical tensions. The correlation between Bitcoin and gold has strengthened in recent months, with both assets responding to shifts in monetary policy and geopolitical stress.

The Federal Reserve's decision to pause tightening and the growing prospect of cheaper capital could eventually revive demand for risk assets. However, for now, traders appear to be balancing safety and speculation in their investment strategies.