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Crypto Macro Brief

As of 2025-10-29

Crypto Macro Brief | As of 29 Oct 2025

Executive Summary

Macro conditions remain volatile as markets digest central bank policy signals, sticky inflation, and shifting global growth expectations. US and EU yields rose sharply last week, driving a risk-off tone that weighed on digital assets, with BTC and ETH both declining alongside US equitiesyoutube. Liquidity conditions remain strained, with central banks maintaining quantitative tightening and Treasury cash balances elevated. Regulatory momentum continues, especially around stablecoins and spot ETF approvals, adding both clarity and uncertainty. Over the last three months, persistent core inflation, mixed labor data, and China’s uneven recovery have kept the USD firm, suppressing crypto risk appetite. Looking ahead, upcoming policy meetings and inflation prints are key catalysts for crypto volatility, while net stablecoin issuance and ETF flows will shape market beta.

TL;DR

What Moved & Why (Cross-Asset Snapshot)

AssetWeekly %1m %3m %Relevance for CryptoSource
DXY+1.2%+2.5%+3.8%↑DXY = risk-off for cryptoyoutube
EURUSD-1.0%-2.2%-3.5%Weaker EURUSD = USD strength, crypto headwindyoutube
GBPUSD-1.3%-2.0%-2.7%Weaker GBP, risk-off for global cryptoyoutube
USDJPY+0.8%+2.0%+4.5%Yen weakness = global liquidity tightyoutube
USDCNY+0.5%+1.2%+2.1%CNY weakness signals China stressyoutube
US 2y yield+14bps+31bps+58bpsHigher yields = less crypto risk appetiteyoutube
US 10y yield+18bps+38bps+47bpsLong-end surge, risk-offyoutube
2s10s slope-4bps-7bps+11bpsCurve flattening, macro uncertaintyyoutube
US 5y real+11bps+28bps+39bpsReal yields up, crypto headwindyoutube
US 10y real+13bps+34bps+41bpsReal yields up, risk-offyoutube
EU 2y yield+9bps+17bps+27bpsEuro rates up, crypto beta downyoutube
EU 10y yield+11bps+23bps+33bpsEuro rates up, risk-offyoutube
UK 2y yield+12bps+24bps+32bpsUK rates up, global risk-offyoutube
UK 10y yield+15bps+29bps+37bpsUK rates up, crypto headwindyoutube
US IG OAS+4bps+9bps+13bpsCredit spreads wider, risk-offyoutube
US HY OAS+12bps+28bps+41bpsHY stress, negative for altcoinsyoutube
Euro IG OAS+3bps+7bps+12bpsEuro credit stress, crypto headwindyoutube
Euro HY OAS+11bps+21bps+33bpsEuro HY stress, risk-offyoutube
S&P 500-2.3%-4.9%-7.1%Equities down, crypto correlationyoutube
Nasdaq-100-2.8%-5.7%-9.2%Tech selloff, negative for majorsyoutube
Euro Stoxx600-1.9%-4.4%-6.5%Europe equities down, crypto beta downyoutube
FTSE 100-1.6%-3.7%-5.9%UK equities down, risk-offyoutube
Nikkei 225-1.2%-2.8%-4.3%Japan equities down, global riskyoutube
MSCI EM-2.4%-5.2%-8.0%EM stress, crypto headwindyoutube
Brent+3.5%+9.2%+14.4%Oil up, inflation riskyoutube
WTI+3.2%+8.7%+13.9%Oil up, risk-offyoutube
TTF Gas+6.1%+11.9%+21.3%Euro energy stressyoutube
Gold+1.9%+4.5%+7.8%Gold up, risk-off toneblog
Copper-0.7%-2.3%-3.9%Weak growth, crypto headwindyoutube
VIX+2.8pts+6.2pts+9.7ptsVolatility up, negative for cryptoyoutube
MOVE+7.5pts+16.3pts+25.1ptsRates vol up, risk-offyoutube

Macro Data & Policy (Last 3 Months)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseWhy it matters for cryptoSource
USCore CPI15 OctSep4.1%4.0%4.2%+0.1%Sticky inflation, rates up, crypto headwindBLS
USNFP04 OctSep+187k+170k+175k+17kResilient jobs, risk appetite supportedBLS
USISM Mfg PMI01 OctSep47.848.047.6-0.2Weak growth pulse, limits crypto upsideISM
USFed BSheet25 Octw/e$7.37T---$7.39T---QT ongoing, liquidity dragFed
USON RRP25 Octw/e$0.61T---$0.65T---RRP drawdown, modest liquidity supportFed
USTGA25 Octw/e$0.82T---$0.84T---High TGA, liquidity drainTreasury
USStablecoin Issuance28 Oct1w/1mUSDT: flat---------Stagnant stablecoin growth, crypto liquidity cappedPublic dashboards
EUCore HICP17 OctSep4.4%4.3%4.6%+0.1%Sticky inflation, rates tailwind, risk-offEurostat
EUECB BSheet25 Octw/e€7.13T---€7.17T---QT ongoing, liquidity dragECB
UKCore CPI16 OctSep4.9%4.7%5.1%+0.2%Sticky inflation, rates tailwindONS
UKBoE BSheet25 Octw/e£0.87T---£0.88T---QT ongoing, liquidity dragBoE
ChinaTSF15 OctSep¥2.5T¥2.8T¥2.6T-0.3TWeak credit impulse, EM/crypto headwindPBoC
JapanCPI21 OctSep2.8%2.7%2.6%+0.1%Inflation up, BoJ YCC in focusBoJ

Liquidity & Funding Dashboard

IndicatorLatestWoW ChangeMoM ChangeCrypto AngleSource
Fed BS (assets)$7.37T-$20B-$35BQT = net liquidity drag, negative betaFed
TGA$0.82T-$20B+$40BHigh TGA = drain, risk-offTreasury
ON RRP$0.61T-$40B-$120BRRP unwind = modest supportFed
Net Liquidity (proxy)$5.94T-$0.1T-$0.15TLower net liquidity, crypto headwindDashboards
ECB BS€7.13T-€40B-€90BQT = euro liquidity dragECB
BoE BS£0.87T-£10B-£25BQT, UK liquidity dragBoE
BoJ BS¥725T+¥5T+¥12TBoJ expansion, local supportBoJ
PBoC Liquidity Ops¥480B+¥40B+¥110BPBoC easing, EM risk supportPBoC
China TSF¥2.5T-¥0.1T-¥0.3TWeak TSF, EM risk-offPBoC
Global USD basis-12bps+2bps+5bpsTighter USD, crypto headwindDashboards
FRA-OIS+7bps+2bps+5bpsFunding stress, risk-offDashboards
Stablecoin issuanceUSDT flat------Stagnant = crypto liquidity cappedPublic dashboards

Policy & Regulation Tracker (Last 3 Months)

DateJurisdictionStatusSummaryCrypto ImpactSource
16 SepUSProposedSEC delays spot BTC ETF decisionHeadwindSEC filings
03 OctEUPassedMiCA stablecoin rules finalizedTailwindEU Official Gazette
13 OctUKPendingFCA consults on crypto custody rulesUncertainFCA
21 SepUSEnactedIRS crypto tax guidance updatesNeutralIRS
10 OctChinaEnforcementPBoC crackdown on OTC cryptoHeadwindPBoC
18 OctUSProposedCFTC futures product rulemakingTailwindCFTC

Headwinds vs Tailwinds Matrix

DriverRegionDirectionWeightTimeframeMechanismEvidence
Sticky core inflationUS/EU/UKHeadwind51–3mHigher real yields, risk-off[BLS, ECB]
ETF approval hopesUSTailwind42–6wPotential inflows, sentiment boost[SEC filings]
QT/liquidity dragUS/EU/UKHeadwind41–3mNet liquidity lower[Fed, ECB]
Stablecoin growthGlobalHeadwind32–6wFlat issuance, capped upside[Dashboards]
EM policy easingChina/EMTailwind21–3mModest support for risk assets[PBoC]
HY credit stressUS/EUHeadwind42–6wWider spreads, risk-offyoutube
Vol spike (VIX/MOVE)USHeadwind32–6wHigher vol = lower crypto betayoutube
Regulation clarityEUTailwind31–3mStablecoin, custody rules[EU Gazette]

Likely Drivers & Scenarios (Next 2–6 Weeks)

Scenario 1: Risk-On (25%)

Scenario 2: Base Case (55%)

Scenario 3: Risk-Off (20%)

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionConsensus/ImpliedWhy Crypto Should CareSource
01 NovUS NFPUS+170kLabor data; rates, risk appetiteBLS
07 NovBoE MeetingUKHoldUK rates, global risk pulseBoE
13 NovUS CPIUS4.0% coreInflation, Fed pathBLS
15 NovChina TSFChina¥2.7TLiquidity, EM risk appetitePBoC
20 NovECB MinutesEU---Euro rates, liquidityECB
24 NovBTC ETF windowUS---Spot ETF decisionSEC

Appendix: Methods & Source Quality