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Crypto Macro Brief

As of 2025-11-03

Crypto Macro Brief | As of 03 Nov 2025

Executive Summary

A cautious tone has set in across global macro and digital asset markets as the US Federal Reserve’s recent rate cut failed to catalyze risk appetite, with hawkish guidance for December tempering optimism. US spot Bitcoin ETF outflows accelerated last week, signaling persistent institutional risk-off sentiment and suppressing price momentum for BTC and ETH, both of which hover near pivotal technical levels. Macro data from the US (mixed labor, sticky core inflation), Europe (stagflation signals), and China (credit stabilization but weak property) are reinforcing a fragile risk backdrop, while global liquidity remains tight despite modest central bank balance sheet adjustments. Key upcoming catalysts—including US CPI (13 Nov), Fed minutes (19 Nov), and Bitcoin ETF inflow data—will likely set the tone for crypto’s next directional move. Regulatory headlines remain mixed: while ETF approvals have broadened access, recent enforcement actions and tax guidance weigh as headwinds. The interplay of resilient but flatlining crypto prices, macro cross-currents, and liquidity constraints implies a base-case for consolidation, with tail risks skewed to the downside if US data or ETF flows deteriorate further.

TL;DR

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

Asset1w %1m %3m %Relevance to Crypto
DXY (USD)+0.3-0.8+1.5↑DXY typically risk-off for cryptoblog.
EURUSD-0.2+1.1-1.3Weaker EUR often correlates with lower crypto beta in EUblog.
GBPUSD-0.1+0.5-0.7GBP softness reflects UK growth risks, minor crypto impactblog.
USDJPY+0.4+0.7+2.0JPY weakness supports global USD strength, risk-off for cryptoblog.
US 2Y-6bp-14bp+11bpLower short rates modestly support risk assetsblog.
US 10Y-4bp-8bp+19bpLong-end still sticky; high real yields cap crypto upsideblog.
2s10s Slope+2bp+6bp-8bpBearish flattening signals growth concern—risk-offblog.
US 5Y Real-3bp-7bp+14bpReal yields remain historically high, negative for BTCblog.
S&P 500+1.5-0.4+2.2Modest rebound; beta to crypto risk-onblog.
Nasdaq-100+2.0+0.2+3.5Tech rally supportive but failing to lift BTCblog.
Euro Stoxx+0.9-1.2+0.6EU equities lag, reflecting stagflation riskblog.
Brent-2.5-6.0+1.1Softer oil reduces inflation tail risk, little direct crypto flowblog.
Gold+0.7+5.2+11.5Gold strength signals risk hedging, sometimes positive for BTCblog.
VIX-0.9-2.1-0.4Lower vol, but still above mean—crypto vol remains bidblog.
BTC-1.1+3.4+20.7Consolidation below $120K, ETF outflows headwindblog.
ETH-1.4+2.3+16.2Still lagging BTC, pressured by ETF outflowsblog.

Macro Data & Policy (Last 3 Months)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseWhy it matters for cryptoSource
USCore CPI YoY17 OctSep3.8%3.7%3.7%+0.1%Sticky inflation keeps Fed hawkish, USD liquidity tightblog
USNFP1 NovOct150k170k190k-20kSlower jobs = less rate pressure, but not enough for Fed pivotblog
USFed Funds30 OctOct5.25%5.25%5.5%-0.25%Rate cut failed to boost risk; hawkish dot plotblog
EUCore HICP YoY31 OctOct4.2%4.3%4.5%-0.1%Sticky core, ECB cautious, risk-off for EU cryptoblog
UKCPI YoY16 OctSep4.1%4.2%4.3%-0.1%Persistent inflation, BoE on holdblog
ChinaTSF YoY18 OctSep+9.5%+9.2%+9.3%+0.3%Credit pulse stabilizes, but property still weakblog
USETF Flows1 NovOct-$191M--+$80MLarge outInstitutional demand for BTC/ETH waningblog

Liquidity & Funding Dashboard

MetricLatestWoWMoMCrypto AngleSource
Fed Balance Sheet (Assets)$7.68T-$9B-$24BShrinking sheet = tighter USD liquidity, risk-offblog
TGA$795B+$6B+$21BHigher TGA drains liquidity, negative for cryptoblog
ON RRP$470B-$10B-$35BRRP drawdown mildly positive, but still highblog
Net US Liquidity Estimate$6.42T-$13B-$38BProxy for USD risk asset beta—still fallingblog
ECB Balance Sheet€7.1T+€2B-€8BMarginal change, neutral for EU cryptoblog
BoJ Balance Sheet¥750T+¥3T+¥12TYen liquidity, minor impact globallyblog
PBoC Liquidity Ops¥110B net+¥20B+¥45BChina pulse neutral, crypto beta lowblog
Stablecoin Net IssuanceUSDT: $0B0+$0.3BFlat = neutral on-chain liquidityblog
USDC: -$0.1B-0.1B-0.2BUSDC contraction = mild risk-off for DeFiblog
DAI: 0B0+0.05BDAI stable, no new leverageblog

Policy & Regulation Tracker (Last 3 Months)

Headwinds vs Tailwinds Matrix

DriverRegionDirectionWeightTimeframeMechanismEvidence
Fed PolicyUSHeadwind52–6wHawkish guidance, high real yieldsblog
ETF FlowsUSHeadwind42–6wOutflows = lower inst. demandblog
Stablecoin FlowsGlobalNeutral22–6wFlat net issuanceblog
Macro DataUS/EUHeadwind32–6wSticky inflation, slowing growthblog
Crypto StructureGlobalTailwind32–6wHigher lows since 2022, resilienceblog
RegulationUS/EUHeadwind31–3mNew tax/enforcement, MiCA rolloutblog
China CreditChinaNeutral22–6wStabilizing TSF, weak propertyblog

Likely Drivers & Scenarios (Next 2–6 Weeks)

1. Risk-On (20%)

2. Base Case (60%)

3. Risk-Off (20%)

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionConsensusWhy Crypto Should CareSource
13 NovUS CPI (Oct)US3.7% headlineKey risk event—soft print bullish for cryptoblog
19 NovFed MinutesUS--Dovish tilt could spark rallyblog
22 NovECB MinutesEU--Policy tone for EU risk assetsblog
06 DecUS NFP (Nov)US160kLabor cooling could aid risk rallyblog
OngoingBTC/ETH ETF FlowsUS--Daily/weekly flows as risk barometerblog

Appendix: Methods & Source Quality