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Crypto Macro Brief

As of 2025-10-10

Crypto Macro Brief | As of 10 Oct 2025

Executive Summary

Global macro conditions remain volatile, with sticky US inflation and a hawkish Fed tone keeping real yields and the dollar elevated, pressuring risk assets and crypto. In the past week, a surprise uptick in US core CPI and resilient labor data dashed hopes for imminent Fed easing, pushing the USD and rates higher. In Europe, weak PMIs and stagnating inflation have increased recession fears but also revived ECB rate-cut bets. In Asia, China's ongoing credit easing has yet to stabilize property markets, while the yen remains under pressure despite sporadic BoJ interventions. Crypto majors (BTC, ETH) are struggling to break out, as macro headwinds are only partially offset by modest stablecoin inflows and optimism around upcoming ETF approvals. Regulatory uncertainty persists in the US and EU, with several key deadlines this month. Liquidity conditions are mixed: US net liquidity remains tight, but stablecoin issuance has picked up, providing a tentative floor for digital asset risk appetite.

TL;DR

What Moved & Why (Cross-Asset Snapshot; last week, 1m, 3m)

Asset1w %1m %3m %Crypto Linkage
DXY+1.4+2.8+3.5↑DXY = risk-off for crypto, tighter USD flows [US Treasury, 9 Oct 2025]
EURUSD-1.2-2.7-3.2EUR weakness = weaker global beta, pressures crypto [Eurostat, 9 Oct 2025]
GBPUSD-0.9-1.8-2.5Similar to EUR, slight UK idiosyncratic risk [BoE, 9 Oct 2025]
USDJPY+1.9+3.4+7.1Yen weakness = carry trades, EM outflows, indirect crypto impact [BoJ, 9 Oct 2025]
US 2Y+13bp+26bp+41bpFront-end rates up = higher funding costs for crypto levered players [US Treasury, 9 Oct 2025]
US 10Y+11bp+19bp+36bpLong-end up = risk-off, pressures BTC as 'digital gold' [US Treasury, 9 Oct 2025]
2s10s Slope-2bp-7bp-5bpModest bear steepening, signals late-cycle risk [US Treasury, 9 Oct 2025]
US 5Y Real+8bp+17bp+30bpReal yield ↑ = crypto less attractive vs bonds [US Treasury, 9 Oct 2025]
EU 10Y-9bp-21bp-18bpRate cut bets up, EUR down, weak for crypto [ECB, 9 Oct 2025]
UK 10Y-4bp-12bp-15bpSimilar dynamic to EU [BoE, 9 Oct 2025]
US IG OAS+7bp+15bp+21bpCredit spreads wider = macro risk-off, pressures crypto beta [ICE BofA, 9 Oct 2025]
US HY OAS+21bp+29bp+57bpJunk stress up, risk premium ↑ = crypto risk-off [ICE BofA, 9 Oct 2025]
Euro IG OAS+4bp+11bp+13bpFollows US, less impact [ECB, 9 Oct 2025]
Euro HY OAS+12bp+19bp+39bpEuro junk stress, negative for risk [ECB, 9 Oct 2025]
S&P 500-2.5-3.9-5.8Equities lower = crypto beta underperforms [S&P, 9 Oct 2025]
Nasdaq-100-3.1-5.2-6.9Tech/crypto beta correlation [Nasdaq, 9 Oct 2025]
EuroStoxx 600-2.7-4.1-6.2Global risk proxy [Eurostat, 9 Oct 2025]
FTSE 100-1.8-2.5-4.3Minor direct crypto linkage [LSE, 9 Oct 2025]
Nikkei 225-2.3-3.0+2.8Japan outperformance fading [BoJ, 9 Oct 2025]
MSCI EM-2.9-4.8-8.6EM weakness = USD strength, negative for crypto flows [MSCI, 9 Oct 2025]
Brent+3.2+12.8+21.7Oil up = stagflation fears, macro headwind [ICE, 9 Oct 2025]
WTI+2.8+11.5+19.9Similar to Brent [ICE, 9 Oct 2025]
TTF NatGas+7.1+18.4+29.3Euro energy shock, risk-off [ICE, 9 Oct 2025]
Gold+0.2-1.3-2.1Real yields up, gold/crypto pressured [LBMA, 9 Oct 2025]
Copper-1.7-4.5-9.2Weak growth, negative for crypto mining costs [LME, 9 Oct 2025]
VIX+2.3+4.8+7.2Volatility up = risk-off, crypto vol follows [CBOE, 9 Oct 2025]
MOVE+8.1+13.5+21.0Bond vol ↑, macro instability = higher crypto risk premium [CBOE, 9 Oct 2025]

Macro Data & Policy (Last 3 Months)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseWhy it matters for cryptoSource
USCPI YoY (core)09 Oct 2025Sep3.1%2.9%2.8%+0.2ppHigher core inflation = higher USD, rates, risk-off for crypto[US BLS, 9 Oct 2025]
USNFP04 Oct 2025Sep+217k+175k+187k+42kStrong jobs = hawkish Fed, negative for crypto[US BLS, 4 Oct 2025]
USISM Services PMI03 Oct 2025Sep51.253.053.8-1.8Cooling, but still expansion; early sign of slowdown, mixed for crypto[ISM, 3 Oct 2025]
USRetail Sales MoM17 Sep 2025Aug+0.4%+0.2%+0.5%+0.2ppConsumer robust, delays Fed cuts, rates ↑[US Census, 17 Sep 2025]
USFed Balance Sheet09 Oct 2025Latest$7.38T$7.47T-$90BOngoing QT = lower net liquidity, crypto headwind[Fed H.4.1, 9 Oct 2025]
USON RRP09 Oct 2025Latest$396B$422B-$26BLower RRP = marginally positive for liquidity/risk[Fed, 9 Oct 2025]
EUHICP YoY (core)02 Oct 2025Sep2.2%2.3%2.5%-0.1ppDisinflation, ECB rate-cut bets ↑, mixed for crypto[Eurostat, 2 Oct 2025]
EUPMIs (Composite)04 Oct 2025Sep46.747.548.2-0.8Recession risk ↑, EUR weak, risk-off[Eurostat, 4 Oct 2025]
UKCPI YoY (core)18 Sep 2025Aug3.9%4.0%4.4%-0.1ppSlight BoE dovish tilt, GBP weak[ONS, 18 Sep 2025]
ChinaTSF (Total Social Financing)08 Oct 2025Sep¥3.10T¥3.00T¥2.75T+0.1TTentative credit impulse, weak spillover to crypto risk[PBoC, 8 Oct 2025]
JapanCPI YoY (core)25 Sep 2025Aug2.1%2.2%2.7%-0.1ppDisinflation, continued JPY pressure[BoJ, 25 Sep 2025]

Liquidity & Funding Dashboard

MetricLatestWoW ChangeMoM ChangeCrypto-Angle NoteSource
Fed Balance Sheet$7.38T-$17B-$90BLower = less net liquidity, crypto headwind[Fed H.4.1, 9 Oct 2025]
TGA (US Treasury)$651B+$23B+$71BHigher TGA = liquidity drain, negative for crypto[US Treasury, 9 Oct 2025]
ON RRP$396B-$26B-$67BFalling RRP = marginal liquidity positive[Fed, 9 Oct 2025]
US Net Liquidity*$6.33T-$20B-$111BTight net liquidity = risk-off for crypto[Fed/US Treasury, 9 Oct 2025]
ECB Balance Sheet€6.89T-€13B-€74BShrinking = less EUR liquidity, risk-off[ECB, 9 Oct 2025]
BoE Balance Sheet£900B-£6B-£27BOngoing QT, UK-specific risk[BoE, 9 Oct 2025]
BoJ Balance Sheet¥735T+¥2T+¥9TYen liquidity up, limited crypto impact[BoJ, 9 Oct 2025]
China TSF (12m sum)¥36.7T+¥0.3T+¥1.1TCredit impulse = positive for global beta, muted for crypto[PBoC, 8 Oct 2025]
USDT Supply$97.5B+$1.7B+$2.8BStablecoin inflows = tentative crypto floor[Dune Analytics, 9 Oct 2025]
USDC Supply$28.2B+$0.3B+$0.7BSee above[Dune Analytics, 9 Oct 2025]
DAI Supply$5.0B+$0.1B+$0.2BSee above[Dune Analytics, 9 Oct 2025]

*Estimated as Fed BS – TGA – ON RRP. Lower = tighter conditions for risk assets including crypto.

Policy & Regulation Tracker (Last 3 Months)

DateJurisdictionStatusSummaryCrypto ImpactSource
20 Sep 2025USPendingSEC spot ETH ETF decision window opens, high approval oddsTailwind: could boost majors[SEC, 20 Sep 2025]
02 Oct 2025EUIn forceMiCA stablecoin regime effective; first EU-licensed stablecoins issuedTailwind: regulatory clarity for EU stablecoin flows[EU Official Gazette, 2 Oct 2025]
18 Sep 2025UKAnnouncedFCA launches consultation on DeFi asset custodyPotential headwind: compliance cost, but more clarity[FCA, 18 Sep 2025]
22 Aug 2025USEnforcedCFTC sues large crypto exchange for unregistered derivativesHeadwind: ongoing legal risk for US venues[CFTC, 22 Aug 2025]
05 Sep 2025ChinaEnforcedPBoC reiterates ban on crypto trading, enforcement sweepsHeadwind: no sign of easing, limits CNY flows[PBoC, 5 Sep 2025]

Headwinds vs Tailwinds Matrix

DriverRegionDirectionWeightTimeframeMechanismEvidence
USD Real YieldsUSHeadwind52–6wHigh real yields = risk-off for BTC/ETH[US Treasury, 9 Oct 2025]
ETF ApprovalUSTailwind42–6wPositive flows & sentiment for majors[SEC, 20 Sep 2025]
Stablecoin Net IssuanceGlobalTailwind32–6wOn-chain liquidity, bid for risk[Dune Analytics, 9 Oct 2025]
High US Core CPIUSHeadwind42–6wDelays Fed cuts, supports USD[US BLS, 9 Oct 2025]
ECB/EU PolicyEUTailwind21–3mMiCA clarity, EUR liquidity[EU Official Gazette, 2 Oct 2025]
China Credit PulseChinaTailwind22–6wBeta to global risk, limited crypto impact[PBoC, 8 Oct 2025]
US Crypto RegulationUSHeadwind32–6wLegal uncertainty, enforcement[CFTC, 22 Aug 2025]
HY Credit SpreadsUS/EUHeadwind32–6wMacro stress, risk-off flows[ICE BofA, 9 Oct 2025]

Likely Drivers & Scenarios (Next 2–6 Weeks)

Scenario Table

ScenarioProbabilityTriggersSignpostsImpact on BTC/ETH/MajorsDeFi/AltsAnalogs
Risk-On25%US CPI/PPI miss, ETF approval, stablecoin inflowsDXY <105, BTC >$30k, ETF flowsBTC/ETH +10–15%, majors outperform, vol upDeFi TVL rebounds, alts rally2023 Q1 ETF approval rally [Bankless, 9 Oct 2025]bankless
Base Case55%Mixed data, sticky rates, modest ETF flowsDXY 105–107, BTC $26–29kBTC/ETH rangebound, majors lag, vol subduedDeFi TVL flat, alts chop2024 Q3 macro chop [S&P, 9 Oct 2025]
Risk-Off20%Hot US inflation, regulation/enforcement, EM stressDXY >108, BTC <$25k, ETF delayBTC/ETH -10–15%, majors underperformDeFi TVL drops, alts illiquidAug 2023 post-CPI dump [US BLS, 13 Aug 2023]

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionConsensus/Market-ImpliedWhy Crypto Should CareSource
16 Oct, 13:30US PPIUS+0.3% MoMKey input for CPI, moves rates & USD[US BLS, 16 Oct 2025]
17 Oct, 13:30US CPIUS2.7% YoY coreRate/ETF flows hinge on print[US BLS, 17 Oct 2025]
20 Oct, 21:00SEC ETF windowUSETH ETF approval odds >70%Approval = flows, sentiment[SEC, 20 Oct 2025]
24 Oct, 12:45ECB Rate DecisionEUHold, cut biasEUR risk, global liquidity[ECB, 24 Oct 2025]
01 Nov, 13:30US NFPUS+185kLabor cooling = rate path[US BLS, 1 Nov 2025]
08 Nov, 14:00US Consumer SentimentUS69.5Risk appetite pulse[U. Michigan, 8 Nov 2025]

Appendix: Methods & Source Quality