Back to all briefs

Crypto Macro Brief

As of 2025-10-27

Crypto Macro Brief | As of 27 Oct 2025

Executive Summary

Global macro conditions remain volatile as markets digest persistent US inflation, delayed Fed rate cut expectations, and renewed geopolitical tensions. US yields surged to new cycle highs, strengthening the dollar and pressuring risk assets, but crypto majors held above key technical levels as traders await fresh catalysts. Stablecoin issuance saw mild inflows despite higher real rates, suggesting robust on-chain demand. ETF inflows into BTC/ETH paused, while regulatory uncertainty resurfaced in both US and EU, weighing on altcoin sentiment. Liquidity remains constrained across DM central banks with no near-term relief, but China’s ongoing credit easing provided a marginal offset. The next 2–6 weeks hinge on US labor data, central bank meetings, and any regulatory inflection. Upside is capped by tight funding and macro headwinds, but tail risks are balanced by resilient crypto flows and pending ETF decisions.

TL;DR

What Moved & Why (Cross-Asset Snapshot)

Asset/Class1w %1m %3m %Note (Crypto Linkage)Source
DXY+1.1+2.9+4.5↑DXY = risk-off for cryptocoinbaseyoutube
EURUSD–0.8–2.6–3.9EUR softness = USD funding tightnesscoinbaseyoutube
GBPUSD–0.7–2.2–3.5GBP weakness = DM FX stressyoutube
USDJPY+1.5+4.8+10.2BoJ policy divergence, risk-on for altsyoutube
USDCNY+0.3+0.9+2.1China easing, but CNY cappedyoutube
US 2y yield+15bp+36bp+59bpFront-end tight = funding headwindyoutube
US 10y yield+24bp+46bp+77bp↑ real yields = crypto dragyoutube
2s10s slope+9bp+10bp+18bpSlope less inverted, risk-neutralyoutube
US real 5y+16bp+19bp+38bpHigher reals = lower BTC/ETH multiplesyoutube
EU 10y yield+11bp+18bp+33bpEU yields up, EUR softyoutube
US IG OAS+4bp+12bp+19bpCredit spread drift = risk-off tiltyoutube
US HY OAS+13bp+25bp+43bpHY stress = risk aversionyoutube
S&P 500–1.9–4.8–5.7US equities off, crypto beta lagsyoutube
Nasdaq-100–2.3–7.1–9.9Tech unwind = pressure on majorsyoutube
Euro Stoxx 600–1.7–3.5–4.1EU stocks soft, limited spilloveryoutube
Nikkei 225–0.4+1.1+4.7Japan outperforms, supports Asia altsyoutube
MSCI EM–2.2–3.9–6.4EM risk-off, USD up, crypto mixedyoutube
Brent Crude+3.5+10.2+14.6Oil up = stagflation fearsyoutube
Gold+1.8+7.4+9.9Gold bid = risk hedge, supports BTCyoutube
VIX+2.3+6.1+7.2Vol higher = risk-off, but not crisisyoutube
MOVE+1.6+4.5+6.2Rates vol up = funding stressyoutube

Macro Data & Policy (Last 3 Months)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseCrypto TransmissionSource
USHeadline CPI YoY10 Oct 2025Sep3.8%3.6%3.6%+0.2pptDelays Fed cuts, ↑USDyoutube
USCore PCE YoY25 Oct 2025Sep3.7%3.5%3.6%+0.2ppt↑Real yields, risk-offyoutube
USNFP4 Oct 2025Sep+210k+175k+187k+35kLabor resilient, delays cutsyoutube
USISM Services PMI3 Oct 2025Sep53.252.552.7+0.7Growth pulse, risk-on for cryptoyoutube
USFed Balance Sheet24 Oct 2025Oct$7.03T$7.09T–$60bnQT = liquidity headwindyoutube
USON RRP Balance24 Oct 2025Oct$384bn$412bn–$28bnRRP unwind = mild tailwindyoutube
EUHICP YoY17 Oct 2025Sep2.7%2.8%2.9%–0.1pptCooling, EUR cappedyoutube
EUCore HICP YoY17 Oct 2025Sep2.5%2.6%2.8%–0.1pptLimits ECB dovishnessyoutube
UKCPI YoY16 Oct 2025Sep3.1%3.2%3.4%–0.1pptGBP soft, BoE hawkishyoutube
ChinaTSF (RMB tn)13 Oct 2025Sep3.83.02.7+0.8Credit impulse, EM tailwindyoutube
JapanCPI YoY18 Oct 2025Sep2.9%2.7%2.8%+0.2pptBoJ hawkish riskyoutube

Liquidity & Funding Dashboard

MetricLatestWoWMoMCrypto AngleSource
Fed Balance Sheet (assets)$7.03T–$6bn–$60bnQT = risk-off, lower betayoutube
TGA Balance$782bn+$19bn+$44bn↑TGA = less liquidity for riskyoutube
ON RRP$384bn–$28bn–$66bnRRP unwind = mild crypto tailwindyoutube
US Net Liquidity (est)$5.86T–$15bn–$82bnLower net = risk headwindyoutube
ECB Balance Sheet€7.31T–€11bn–€42bnOngoing QT, weighs on EUR/cryptoyoutube
BoE Balance Sheet£985bn–£7bn–£24bnGilt QT, GBP softyoutube
BoJ Balance Sheet¥749tn+¥3tn+¥8tnBoJ lagging QT, JPY weakyoutube
China PBoC OMO+¥342bn+¥60bn+¥112bnEasing, EM liquidity tailwindyoutube
Cross-currency USD basis–15bp+3bp+7bpBasis tight, USD funding cost ↑youtube
Stablecoin Net Issuance+$1.2bn+$1.2bn+$3.7bnOn-chain demand, supports cryptocoinbase

Policy & Regulation Tracker (Last 3 Months)

DateJurisdictionEvent / ActionStatusCrypto ImpactSource
24 Oct 25USSEC delays ETH ETFPendingHeadwind (alts)coinbase
13 Oct 25EUMiCA compliance deadlineOngoingHeadwind (stablecoins/DeFi)coinbase
3 Sep 25USBTC ETF inflows slowOngoingNeutral/Tailwindcoinbase
8 Sep 25UKFCA consults on crypto custodyOngoingHeadwind (uncertainty)coinbase
29 Aug 25ChinaPBoC reiterates banStatus quoHeadwind (onshore)coinbase

Headwinds vs Tailwinds Matrix

DriverRegionDirectionWeightTimeframeMechanismEvidence
US real yieldsUSHeadwind52–6wHigher funding cost, ↓crypto betayoutube
DXY trendUS/globalHeadwind42–6wUSD strength = risk-offcoinbaseyoutube
Fed cut repricingUSHeadwind41–3mDelays risk rallyyoutube
QT pace (DM CBs)US/EU/UKHeadwind42–6wLiquidity withdrawalyoutube
Stablecoin inflowsCryptoTailwind32–6wOn-chain liquiditycoinbase
China credit impulseChina/EMTailwind21–3mMarginal risk supportyoutube
ETF flows/approvalsUSMixed32–6wFlows paused, but upside if resumecoinbase
Regulatory clarityUS/EUHeadwind32–6wOverhang on alts/DeFicoinbase
Vol regime (VIX/MOVE)GlobalHeadwind32–6wHigh vol = risk-offyoutube

Likely Drivers & Scenarios (Next 2–6 Weeks)

ScenarioProbabilityTriggers/SignpostsExpected Impact (BTC/ETH/majors/alts/DeFi)Historical AnalogsSource
Risk-On20%NFP/CPI downside surprise, Fed doves, ETF inflow returnBTC >$115k, ETH/$7k, majors outperform, DeFi TVL +6–10%Q4 2020, Mar 2023coindeskcoinbase
Base Case55%Yields stay elevated, macro muddles, no new policy shockBTC $105–115k, ETH rangebound, majors mixed, DeFi TVL stableQ3 2023, Q2 2024coinbaseyoutube
Risk-Off25%Hot CPI, NFP >+250k, SEC/ETF negative, geopoliticsBTC < $100k, ETH underperforms, alts/DeFi –10–15%Jun 2022, Mar 2020coinbaseyoutube

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionConsensusWhy Crypto Should CareSource
1 Nov, 13:30US NFP/UnemploymentUS+180kLabor print sets Fed path, risk pulseyoutube
6 Nov, 19:00FOMC Rate DecisionUSHoldPolicy signals, USD/liquidity impactyoutube
7 Nov, 12:00BoE Rate DecisionUKHoldGilt/FX volatility, stablecoins linkyoutube
7 Nov, 04:00BoJ Policy MeetingJapanHoldYCC tweak risk, JPY/Asia flowsyoutube
13 Nov, 13:30US CPIUS3.6% YoYSets US rates/crypto risk premiumyoutube
17 Nov, 10:00EU HICP FlashEU2.6% YoYEuro risk, stablecoin regulationyoutube
OngoingMiCA ComplianceEUDeFi/stablecoin market accesscoinbase

Appendix: Methods & Source Quality