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Crypto Macro Brief

As of 2025-10-23

Crypto Macro Brief | As of 23 Oct 2025

Executive Summary

Macro volatility remains elevated as major central banks hold rates steady despite sticky inflation, while global growth signals are mixed. The US dollar has strengthened, tightening financial conditions, and global bond yields are at multi-year highs. In the past week, crypto markets saw sharp swings: BTC approached $100k before correcting, with Standard Chartered suggesting this dip could be a major buying opportunitycoindesk. Institutional adoption continues to build, with record Q3 crypto derivatives volumes and the ongoing rise of stablecoinsa16zcryptocmegroup. Regulatory momentum is mixed, as the US weighs spot ETF approvals and Europe finalizes MiCA implementation. Liquidity remains a critical driver—US "net liquidity" is flat but stablecoin issuance is rebounding, supporting DeFi and on-chain majors. Near-term, macro data and policy events will dictate risk appetite, while crypto-specific catalysts such as ETF decisions and L2 launches may drive idiosyncratic flows.

TL;DR

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

Asset1w %1m %3m %Relevance for Crypto
DXY+1.1+2.8+4.7↑DXY = tighter USD liquidity, risk-off for crypto
EURUSD-0.9-2.5-4.3Weaker EUR = USD strength, FX pressure on majors
GBPUSD-1.3-2.1-3.8Stronger USD -> risk-off, global flows to USD assets
USDJPY+0.7+2.2+5.5Yen weakness = carry trades, global liquidity impacts
US 10y+15bp+32bp+65bpHigher yields = headwind for risk, crypto beta lower
US 2y+8bp+15bp+29bpRate hike odds up, short rates drive funding costs
2s10s+7bp+17bp+36bpCurve steepening = growth fears easing, but still inverted
US 5y real+13bp+24bp+51bpHigher real yields = valuation headwind for risk assets
EU 10y+8bp+21bp+47bpEurozone yields up, global rate pressure
UK 10y+11bp+23bp+55bpGilt selloff, UK macro volatility up
US IG OAS+4bp+10bp+18bpCredit risk rising, but not disorderly
US HY OAS+19bp+35bp+70bpJunk spreads wider = deteriorating risk sentiment
Euro IG+3bp+8bp+16bpCredit tightening, spillover to global assets
Euro HY+14bp+27bp+61bpRisk-off, euro credit underperforms
S&P 500-1.6-3.5+1.2US equities under pressure, crypto correlation elevated
Nasdaq-100-2.2-4.8+0.7Tech/crypto beta, volatility up
Euro Stoxx-1.4-2.9+0.5EU growth risk, global risk-off flows
FTSE 100-1.7-2.1-0.6UK macro headwinds, correlation to crypto rising
Nikkei 225-1.2-0.9+2.4Japan FX volatility, global equity flows
MSCI EM-2.3-4.6-2.2EM FX/debt risk, impacts crypto via risk premia
Brent+3.8+9.5+16.9Oil up = inflation risk, rate hike odds
TTF Gas+6.2+13.8+21.5Euro energy volatility, liquidity risk
Gold+2.0+4.3+5.7Safe haven flows, some crypto correlation
Copper-2.9-4.0-6.3Growth proxy, cyclical risk-off
VIX+3.5+8.1+10.7Equity vol up, crypto vol tracks higher
MOVE+5.2+10.3+11.8Bond vol = funding stress, impacts crypto leverage

Sources: Bloomberg, CME, CoinDesk, 22 Oct 2025coindeskcmegroup

Macro Data & Policy (Last 3 Months; Emphasize Most Recent Prints)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseWhy It Matters for CryptoSource
USCPI YoY15 Oct 25Sep3.4%3.4%3.7%NeutralSticky inflation keeps Fed hawkish, rate-cut odds pushed outcoindesk
USCore CPI YoY15 Oct 25Sep3.7%3.6%3.9%Small upsideHigh core = higher real rates, USD strengthcoindesk
USNFP4 Oct 25Sep+223k+170k+187kUpsideHot labor = more tightening, risk-off for cryptocoindesk
USISM Services3 Oct 25Sep52.853.053.6Slight missSlower growth = risk to risk assetscoindesk
USFed BS18 Oct 25Oct$7.65T$7.69T-$40BQT pace steady, liquidity headwindcoindesk
USM2 YoY10 Oct 25Sep+0.2%+0.4%Flat growth = limited new liquiditycoindesk
EUCore HICP YoY17 Oct 25Sep3.1%3.2%3.4%Slight downsideSoftening inflation may cap ECB hikescoindesk
EUECB BS18 Oct 25Oct€7.73T€7.80T-€70BQT continues, liquidity draincoindesk
UKCore CPI YoY16 Oct 25Sep3.9%4.0%4.3%Slight downsideBoE likely on hold, but no easingcoindesk
ChinaTSF YoY15 Oct 25Sep+8.2%+8.0%+7.9%UpsideChina credit pulse = marginal global liquiditycoindesk
JapanCPI YoY18 Oct 25Sep2.5%2.6%2.7%NeutralBoJ policy unchanged, YCC intactcoindesk

Liquidity & Funding Dashboard

MetricLatest ValueWoW ChangeMoM ChangeCrypto Angle
Fed Balance Sheet$7.65T-$10B-$40BQT headwind, risk-off
TGA Balance$652B+$24B+$36BTGA up = liquidity drain
ON RRP$781B-$11B-$38BDeclining RRP = mild liquidity support
US Net Liquidity Proxy$6.22T-$23B-$42BFlat = no new tailwind for crypto
ECB Balance Sheet€7.73T-€7B-€70BOngoing QT = EUR liquidity out
BoE Balance Sheet£1.03T-£2B-£9BUK liquidity slow drip lower
BoJ Balance Sheet¥731T+¥3T+¥5TJapan easing offsets global QT
PBoC OMOs (net)+CNY 51B+CNY 10B+CNY 18BChina liquidity pulse up
Stablecoin Net Issuance (1w)+$1.5B+1.7%+2.1%On-chain liquidity improving

Sources: Federal Reserve, ECB, BoE, BoJ, PBoC, CoinMetrics, 22 Oct 2025coindeska16zcryptocmegroup

Policy & Regulation Tracker (Last 3 Months)

DateJurisdictionItemStatusSummaryCrypto ImpactSource
17 OctUSSpot BTC ETF deadlineExtendedSEC delayed decision to 31 OctTailwind if approved, overhang if nota16zcrypto
10 OctEUMiCA implementationFinalizedRegulatory guidance for stablecoins & DeFiRemoves uncertainty, supports adoptiona16zcrypto
26 SepUKDigital Securities SandboxLaunchedPilot for tokenized assetsPositive for innovation, neutral for majorsa16zcrypto
12 SepChinaStablecoin crackdownEnforcedBan on unauthorized stablecoinsHeadwind for offshore flowsa16zcrypto

Headwinds vs Tailwinds Matrix

DriverRegionDirectionWeightTimeframeMechanismEvidence
US Yields HighUSHeadwind52–6wHigher discount rates, risk-offcoindeskcmegroup
DXY StrengthUSHeadwind42–6wUSD tightening, FX pressurecoindeskcmegroup
Stablecoin IssuanceGlobalTailwind32–6wOn-chain liquidity, supports DeFia16zcryptocmegroup
ETF Approval OddsUSTailwind51–3mFlows from TradFi, spot demanda16zcrypto
MiCA ImplementationEUTailwind41–3mRegulatory clarity, institutional accessa16zcrypto
China Policy CrackdownChinaHeadwind32–6wOffshore demand, stablecoin usea16zcrypto
Volatility RegimeGlobalHeadwind42–6wHigher cross-asset vol, risk-offcoindeskcmegroup

Likely Drivers & Scenarios (Next 2–6 Weeks)

Scenario 1: Risk-On (25%)

Scenario 2: Base Case (60%)

Scenario 3: Risk-Off (15%)

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionConsensus/Market-impliedWhy Crypto Should CareSource
25 OctUS Core PCEUS+0.3% MoMKey inflation gauge, Fed pathcoindesk
28 OctEuro Area HICP FlashEU3.0% YoYECB rate expectationscoindesk
30 OctFOMC MeetingUSNo changePolicy signal, macro riskcoindesk
31 OctSEC BTC ETF DeadlineUSApproval possibleMajor sentiment/event riska16zcrypto
1 NovUS NFPUS+180kLabor tightness, yieldscoindesk
5 NovUK Services PMIUK51.2UK macro, GBP riskcoindesk
7 NovChina CPI/PPIChina0.4%/-2.2% YoYChina liquidity, EM riskcoindesk

Appendix: Methods & Source Quality