Bitcoin (COIN:BTCUSD) extended its decline on Tuesday, falling under $109,000 as the weekend rebound lost steam and enthusiasm around the so-called “Uptober” rally continued to wane. The retreat came even as broader risk sentiment improved on easing U.S.–China trade tensions and political developments in Asia.
By 09:26 ET (13:26 GMT), Bitcoin was down 2.3% at $108,820, leading losses across major digital assets and underperforming traditional markets.
Optimism over “Uptober” fades
Bitcoin’s attempt to hold above $110,000 has faltered since the early-October flash crash that erased roughly $500 billion in total crypto market value. That sudden plunge has kept traders cautious, limiting buying activity in an already volatile environment.
Seasonal optimism tied to “Uptober,” which refers to October’s historically strong performance for cryptocurrencies, has faded quickly. Bitcoin is now down over 2% for the month, with little sign of renewed momentum.
“So far this year, Uptober hasn’t gone to plan for Bitcoin bulls. Instead of seasonal strength, the price action has remained subdued with an early rally fizzling midway through the month, delivering an ugly reversal that may not be over yet,” FOREX.com analysts wrote.
They added that Bitcoin has broken away from its usual correlation with risk assets such as equities, which have hit record highs in recent weeks. According to their note, Bitcoin was “lagging badly in an environment where so many high-beta markets are ripping higher.”
On Tuesday, that divergence was clear. Asian equities surged — Japan’s markets hit record levels on optimism surrounding Sanae Takaichi’s progress toward becoming prime minister — while Chinese stocks climbed on conciliatory comments from U.S. officials over trade. Crypto markets, however, moved sharply lower.
Coinbase makes strategic $375M acquisition
Coinbase (NASDAQ:COIN) announced plans to buy Echo, an investment platform for token sales, in a cash-and-stock deal valued at roughly $375 million.
Echo develops tools for public and private token offerings aimed at making capital raising more accessible. “We want to create more accessible, efficient, and transparent capital markets,” Coinbase said in a blog post.
Initially, Coinbase will use Echo’s Sonar platform to facilitate crypto token offerings before expanding into tokenized securities and real-world assets. Founded by Jordan “Cobie” Fish, Echo has helped blockchain projects raise over $200 million.
The deal reflects a surge in M&A activity in the digital asset space this year, supported by a more favorable U.S. regulatory environment.
Altcoins follow Bitcoin lower
Altcoins broadly mirrored Bitcoin’s losses. Ether dropped 3.5% to $3,881.71, failing to hold above $4,000. XRP slipped 1.1% to $2.42 despite news that Evernorth — backed by Ripple Labs — will go public on Nasdaq through a SPAC merger, raising more than $1 billion to acquire XRP.
Among other major tokens, BNB fell 3.1%, Cardano declined 2.4%, and Solana lost 3%. Memecoins also came under pressure, with Dogecoin and TRUMP both down more than 2%.
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