Profit-Taking Hits Dogecoin and Cardano; Gold Slips as China Scraps Tax Rebate

Crypto Market Slumps as Bitcoin Holders Cash Out; Gold Falls After China Ends Tax Rebates
November 3, 2025

Cryptocurrency markets extended their losing streak Monday, with major tokens declining up to 5% as long-term bitcoin investors increased profit-taking and market sentiment remained subdued.

Data from Glassnode shows bitcoin selling by long-term holders has tripled since June, as investors who bought near $93,000 began to lock in gains. The wave of profit-taking follows a turbulent October — the worst monthly performance for the crypto market since 2015.

Bitcoin (BTC) traded around $106,000 in early Asia hours after briefly reclaiming $110,000 last week. Dogecoin (DOGE) and Cardano (ADA) led losses among major altcoins, each slipping about 5%, while Solana (SOL), BNB, and Ether (ETH) declined up to 4%. Tron (TRX) traded flat over the same period.

The pullback came without any clear macro or regulatory catalyst, suggesting a round of profit-taking after a modest rebound last week. Market analysts said that the absence of fresh bullish drivers and weakening technical momentum have dampened confidence.

“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 form lower highs, though the $3.5 trillion total market capitalization zone has repeatedly attracted dip-buyers.”

Kuptsikevich noted that optimism around November’s historically strong performance quickly faded after the early “Uptober” rally fizzled out.

Despite the selling pressure, spot trading volume surpassed $300 billion in October, the highest in a year, indicating healthy liquidity and two-way participation between bulls and bears.

Gold Retreats as Beijing Tightens Retail Policy

Gold prices steadied near $4,000 per ounce on Monday after an early slide triggered by China’s decision to end tax rebates for some gold retailers — a move that could weigh on demand in one of the world’s largest consumer markets.

The policy change, announced over the weekend, removes value-added tax offsets for retailers selling gold sourced from the Shanghai Gold Exchange and Shanghai Futures Exchange. The timing is notable, coming just after gold’s record-breaking October rally — driven by strong retail demand and central bank buying — began to cool.

Even with the latest pullback, gold remains up more than 50% year-to-date, underscoring persistent haven demand amid global economic uncertainty and geopolitical risk.

The link between bitcoin and gold, once considered competing assets, has strengthened in recent months. Both have increasingly moved in response to monetary policy shifts and geopolitical tensions, reflecting investors’ search for stability as central banks signal an extended pause in tightening.

While the Federal Reserve’s rate hold raises the prospect of looser financial conditions ahead, traders remain cautious — balancing between risk exposure and safe-haven assets in an uncertain macro environment.