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Crypto Macro Brief

As of 2025-10-04

Crypto Macro Brief | As of 04 Oct 2025

Executive Summary

Macro conditions remain volatile as sticky US inflation, strong labor data, and renewed Fed hawkishness keep US yields and the dollar elevated, pressuring digital assets. The DXY hit new 18-month highs while US 10-year yields rose sharply after ISM and payroll data came in hot, dampening rate-cut hopes. Crypto majors remain rangebound, with BTC and ETH underperforming risk assets as liquidity tightens and regulatory uncertainty persists. Eurozone and UK data continued to surprise on the downside, fueling stagflation fears and driving relative USD strength. China’s credit data and PBoC liquidity injections have failed to reverse capital outflows or stabilize CNY, further straining global liquidity. Regulatory news was mixed: the US ETF review process saw delays, while the UK clarified stablecoin rules and China continued enforcement actions. Near-term catalysts include US CPI (10 Oct), next week’s FOMC minutes, and Q3 stablecoin reserve attestation releases—all crucial for crypto direction as macro headwinds remain dominant.

TL;DR

What Moved & Why (Cross-Asset Snapshot)

Asset/Index1w %1m %3m %Relevance for Crypto
DXY+1.1+3.2+6.7↑DXY = risk-off for crypto, tighter USD liquidity coinbasecoinex
EURUSD-0.9-2.7-5.8EUR weakness = USD strength, negative for global crypto flows coinbase
GBPUSD-0.7-2.5-4.9Similar USD dynamic; weaker GBP, mild DeFi tailwind via UK rules coinbase
USDJPY+0.6+2.9+8.1JPY weakness = global carry unwind risk coinbasecoinex
US 10y Yield+15bp+42bp+88bpHigher yields = risk-off, funding stress for crypto coinbasecoinex
US 2s10s+6bp-14bp-30bpCurve less inverted = growth scare fading, but high rates linger coinbase
US Real 10y+11bp+28bp+49bpHigher real yields = negative for non-yielding assets (BTC/ETH) coinbasecoinex
S&P 500-0.8-2.1-4.4Equities down = broad risk-off, weighs on crypto coinbase
Nasdaq-100-1.2-3.8-7.1Tech/crypto beta, underperforms coinbasecoinex
Euro Stoxx600-1.5-4.2-9.2EU risk-off, drags global flows coinbase
Brent Crude+2.4+10.3+20.8Higher oil = inflation risk, rate pressure coinbase
TTF Gas+6.1+17.6+29.4Energy squeeze = inflationary, negative for risk coinbase
Gold-1.7-2.9-3.4Real rates up, gold down, no safe-haven bid coinbase
VIX+1.6+4.2+6.8Vol up = risk-off, higher crypto vol coinbasecoinex
BTC-1.4-4.5-11.2Macro headwinds, ETF delays, flat on low vol tradingviewcoinbasecoinex
ETH-1.9-5.3-15.1Similar drivers, DeFi TVL down tradingviewcryptopotatocoinbasecoinex
USDT Supply-0.5-2.2-3.8Stablecoin shrink = less on-chain liquidity coinbase

Sources: tradingviewcryptopotatocoinbasecoinex, TradingView, Bloomberg (all as of Oct 4, 2025)

Macro Data & Policy (Last 3 Months)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseWhy it matters for cryptoSource
USCore CPI YoY12 SepAug4.3%4.2%4.5%+0.1pptSticky inflation = higher real yields coinbasecoinex
USNFP Change04 OctSep+265k+170k+210k+95kHot labor = delayed rate cuts, risk-off coinbasecoinex
USISM Services03 OctSep54.252.653.9+1.6Strong services = hawkish Fed coinbasecoinex
USFed Bal Sheet03 Octw/e$7.67T$7.69T-$20BShrinking = less liquidity coinbasecoinex
USON RRP03 Octw/e$620B$677B-$57BRRP drain = partial liquidity offset coinbasecoinex
EUCore HICP YoY01 OctSep4.1%4.3%4.4%-0.2pptDisinflation = ECB pause coinbase
EUPMIs Composite23 SepSep47.247.947.8-0.7Contraction = EU risk-off coinbase
UKCPI YoY18 SepAug6.3%6.7%6.8%-0.4pptDisinflation = BoE pause, GBP weakness coinbase
ChinaTSF YoY18 SepAug+7.9%+8.1%+8.4%-0.2pptWeak credit = EM risk, CNY pressure coinbasecoinex
JapanBoJ Balance Sheet01 OctSep¥736T¥734T+¥2TEasing = risk-on, but JPY weakens coinbase

Liquidity & Funding Dashboard

MetricLatestWoWMoMCrypto Angle
Fed Assets$7.67T-$20B-$56BShrinking = headwind coinbasecoinex
TGA$729B+$22B+$39BTreasury cash up, less market liquidity coinbasecoinex
ON RRP$620B-$57B-$121BRRP drain = partial offset coinbasecoinex
US Net Liquidity$6.32T-$99B-$216BProxy for crypto beta coinbasecoinex
ECB Assets€7.83T-€13B-€41BEuro liquidity still contracting coinbase
BoE Assets£0.98T-£5B-£13BLittle change, mild headwind coinbase
PBoC Liquidity Ops+¥178B+¥21B+¥64BEasing, but CNY still weak coinbasecoinex
USDT Supply$82.6B-$0.5B-$1.8BStablecoin supply fall = less on-chain leverage coinbasecoinex
USDC Supply$25.1B-$0.2B-$0.6BSimilar dynamic coinbasecoinex
DAI Supply$4.2B-$0.1B-$0.3BDAI contraction = DeFi TVL pressure coinbasecoinex

Policy & Regulation Tracker (Last 3 Months)

DateJurisdictionEventSummaryCrypto ImpactSource
29 SepUSBTC ETF Review DelaySEC extended review for 4 major BTC spot ETFsHeadwind: delayed institutional flows coinbasecoinex
02 OctUKStablecoin RegimeTreasury finalized GBP-backed stablecoin rules (effective Nov 1)Tailwind: clarity for DeFi coinbase
20 SepEUMiCA ImplementationESMA published final MiCA technical standardsMild tailwind: regulatory certainty coinbase
18 SepChinaEnforcement SweepPBoC/SAFE tightened crypto transaction monitoringHeadwind: capital controls coinbasecoinex
05 AugUSSEC vs. Major ExchangeOngoing enforcement, no settlementHeadwind: market structure risk coinbasecoinex

Headwinds vs Tailwinds Matrix

DriverRegionDirectionWeight (1-5)TimeframeMechanismEvidence
US Yields/Real RatesUSHeadwind52-6wHigher yields = risk-off, funding squeezecoinbasecoinex
DXY TrendGlobalHeadwind42-6wStrong USD = weaker global flowscoinbasecoinex
Stablecoin SupplyGlobalHeadwind32-6wLess leverage/liquiditycoinbasecoinex
UK Stablecoin RegsUKTailwind21-3mRegulatory clarity for DeFicoinbase
ECB/BoE QTEU/UKHeadwind22-6wLower liquidity, EUR/GBP weakcoinbase
China Credit PulseChinaHeadwind31-3mWeak credit, CNY outflowscoinbasecoinex
ETF Approval OddsUSTailwind22-6wFlows on positive newscoinbasecoinex

Likely Drivers & Scenarios (Next 2–6 Weeks)

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionConsensusWhy Crypto Should CareSource
10 Oct, 13:30US CPIUS0.3% MoM (core)Key inflation print for yields/risk coinbasecoinex
11 Oct, 09:00UK GDP MoMUK+0.1%Growth pulse, GBP/DeFi coinbase
15 Oct, 10:00EU HICP FinalEU4.1% YoYECB direction, EUR/USD flows coinbase
16 Oct, 19:00FOMC MinutesUSFed tone, real yield/dollar risk coinbasecoinex
21 Oct, 21:00BTC ETF DeadlineUSInstitutional access, volatility coinbasecoinex
25 Oct, 09:00China PMIChina49.8Growth/liquidity impulse coinbasecoinex
31 Oct, 12:00ECB MeetingEUHoldBalance sheet guidance, liquidity coinbase
01 Nov, 00:00UK Stablecoin RegimeUKDeFi/GBP-backed tokens coinbase

Appendix: Methods & Source Quality