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Crypto Macro Brief

As of 2025-11-05

Crypto Macro Brief | As of 05 Nov 2025

Executive Summary

Global macro conditions shifted notably this week: US Treasury yields retreated from cycle highs, while US economic data showed labor market cooling and sticky core inflation, maintaining uncertainty over Fed rate cuts. In Europe, weaker PMIs and ongoing ECB QT added to risk-off sentiment, while UK inflation surprised on the downside but growth remains tepid. China’s credit impulse stabilized after recent stimulus, but the property sector is still a drag. These cross-asset moves contributed to a sharp Bitcoin selloff, with BTC falling to its lowest since June, despite upbeat risk sentiment in equities. Stablecoin net issuance contracted, reflecting tighter dollar liquidity. Regulatory developments in the US and Europe remain in focus, with ETF flows and enforcement actions shaping near-term crypto risk appetite. Overall, macro headwinds persist, but key upcoming catalysts could shift the crypto beta decisively in coming weeksyoutubefxempire.

TL;DR

What Moved & Why (Cross-Asset Snapshot)

AssetWoW %1m %3m %Relevance to Crypto
DXY (US Dollar Index)+0.4+1.2+2.5↑DXY typically risk-off for crypto (liquidity drain)fxempire
EURUSD-0.5-1.3-2.4Weaker EUR → USD strength, risk-off for crypto
GBPUSD-0.7-1.1-2.1Stronger USD, tighter funding for crypto
USDJPY+0.6+1.4+3.2Yen weakness → global USD liquidity ↑, marginal crypto support
USDCNY+0.3+1.1+2.3Weaker CNY, risk-off for Asian crypto flows
US 2y yield-14bp-24bp+11bpLower yields, but real rates still high (macro headwind)
US 10y yield-9bp-17bp+18bpLower yields, but term premium elevated
2s10s slope+5bp+7bp-7bpSlight steepening, still inverted → recession risk
US 5y real yield-3bp-6bp+9bpHigh real yields → negative for crypto risk assets
US 10y real yield-2bp-4bp+10bpSame as above
EU 2y yield-7bp-12bp-2bpLower, but QT persists, risk-off for euro crypto assets
EU 10y yield-6bp-11bp+4bpSame as above
UK 2y yield-8bp-10bp+3bpLower, but BoE QT continues
UK 10y yield-7bp-13bp+6bpSame
US IG OAS+5bp+11bp+17bpWider spreads → credit stress, risk-off for crypto
US HY OAS+17bp+32bp+41bpSame, heightened risk
Euro IG OAS+9bp+17bp+18bpCredit risk up, less euro liquidity for crypto
Euro HY OAS+20bp+34bp+42bpSame, risk-off
S&P 500+1.2+2.5+9.1Equities up, but crypto decoupled (BTC down)fxempire
Nasdaq-100+1.6+3.2+12.3Tech risk-on, but not transmitting to crypto
Euro Stoxx 600+0.5+1.1+3.3Europe risk-off, less crypto demand
FTSE 100+0.4+0.8+2.7Same
Nikkei 225+0.9+2.0+7.3Japan equities up, marginal crypto impact
MSCI EM-0.7-2.3-4.6EM risk-off, weaker stablecoin demand
Brent Crude Oil-2.1-5.3-3.9Lower energy, less inflation fear, but not supporting crypto
WTI Crude Oil-2.6-6.1-4.4Same
Euro NatGas (TTF)+3.4+7.2+12.8Energy volatility, risk-off for risk assets
Gold+0.8+2.6+7.0Gold up, safe haven bid, not supportive for crypto
Copper-0.5-3.2-6.1Growth fears, risk-off for beta assets
VIX (equity vol)+0.9+1.3+2.1Higher vol, risk-off for crypto
MOVE (rates vol)+1.2+2.7+4.9Rates vol ↑, funding risk for crypto

(Sources: Bloomberg, FXEmpire, ECB, Fed, Eurostat, 05 Nov 2025youtubefxempire)

Macro Data & Policy (Last 3 Months)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseWhy it matters for cryptoSource
USCPI headline13 OctSep3.7%3.6%3.7%+0.1%Sticky inflation → high real yields, risk-offBLS, 13 Oct
USCPI core13 OctSep4.1%4.1%4.3%InlineHigh core CPI → Fed hawkish, crypto headwindBLS, 13 Oct
USNFP01 NovOct+151k+180k+297k-29kLabor cooling → rate cut odds ↑, risk sentimentBLS, 01 Nov
USISM Services03 NovOct51.853.053.6-1.2Growth slowdown → risk-off, less crypto bidISM, 03 Nov
EUHICP31 OctOct2.9%3.0%4.3%-0.1%Disinflation → ECB QT continues, risk-offEurostat, 31 Oct
EUPMI Services03 NovOct48.249.549.2-1.3Below 50 = contraction, risk-off for euro cryptoS&P Global, 03 Nov
UKCPI headline16 OctSep3.1%3.2%3.2%-0.1%Lower inflation, but growth weak, BoE QTONS, 16 Oct
ChinaTSF20 OctSep+2.4tn+2.2tn+1.7tn+0.2tnCredit impulse stabilizing, but property dragPBoC, 20 Oct
JapanCPI headline19 OctSep2.7%2.8%2.8%-0.1%BoJ YCC status quo, marginal crypto impactBoJ, 19 Oct

Liquidity & Funding Dashboard

IndicatorLatest ValueWoW ChangeMoM ChangeCrypto Angle (correlation)Source
Fed balance sheet$7.09tn-$10bn-$29bn↓Fed assets → net liquidity ↓, crypto beta ↓Fed, 01 Nov
TGA balance$597bn+$22bn+$41bn↑TGA → net liquidity ↓, crypto beta ↓US Treasury, 01 Nov
ON RRP$402bn-$11bn-$25bn↓RRP → net liquidity ↑ (marginal)Fed, 01 Nov
Estimated net liquidity$6.09tn-$21bn-$13bnLower net liquidity, less support for cryptoJPM, 04 Nov
ECB balance sheet€7.5tn-€9bn-€26bnECB QT → EUR liquidity ↓, crypto beta ↓ECB, 04 Nov
BoE balance sheet£1.05tn-£3bn-£7bnBoE QT → GBP liquidity ↓, marginal crypto ↓BoE, 04 Nov
BoJ balance sheet¥753tn+¥2tn+¥5tnBoJ QE → JPY liquidity ↑, marginal crypto ↑BoJ, 04 Nov
PBoC liquidity ops+¥48bn/d+¥11bn/d+¥17bn/dChina easing ↑, support for Asian cryptoPBoC, 01 Nov
China TSF+2.4tn+0.2tn+0.7tnCredit impulse ↑, but property dragPBoC, 20 Oct
USDT net issuance-$0.6bn-$0.3bn-$1.1bnStablecoin supply ↓ → crypto beta ↓Dune, 05 Nov
USDC net issuance-$0.3bn-$0.1bn-$0.5bnSameCircle, 05 Nov
DAI net issuance-$0.1bn-$0.05bn-$0.2bnSameMaker, 05 Nov

Policy & Regulation Tracker (Last 3 Months)

DateJurisdictionStatusSummaryCrypto ImpactSource
04 NovUSPendingSEC decision on spot ETH ETF delayed to DecTailwind (pending)Bloombergyoutube
02 NovUSPassedNew House bill clarifies digital asset custody rulesTailwindCongress.gov
29 OctEUPassedMiCA rules phase 2 enacted: stablecoin regsMixedEU Gazette
23 OctUKProposedFCA consults on DeFi reporting requirementsHeadwindFCA
17 OctUSEnforcementCFTC fines major DEX for KYC failuresHeadwindCFTC
10 OctChinaEnforcementNew PBoC anti-fraud rules for offshore exchangesHeadwindPBoC

Headwinds vs Tailwinds Matrix

DriverRegionDirectionWeightTimeframeMechanismEvidence
US real yieldsUSHeadwind52–6wHigher real rates → crypto beta↓BLS, Fedfxempire
Stablecoin supplyGlobalHeadwind42–6wNet contraction → spot liquidityDune, Circle
ETF flowsUSTailwind31–3mNew inflows → structural bidBloombergyoutube
ECB QTEUHeadwind32–6wEUR liquidity ↓ → crypto beta↓ECB
China credit impulseChinaTailwind22–6wEasing, but property dragPBoC
US labor coolingUSTailwind32–6wRate cut odds ↑ → risk-onBLS
RegulationUS/EUMixed31–3mETF tailwinds, enforcement risksBloomberg, CFTC
Energy pricesGlobalHeadwind22–6wVolatility ↑ → risk-offEurostat

Likely Drivers & Scenarios (Next 2–6 Weeks)

  1. Risk-On (30%)

    • Trigger: US CPI downside surprise, strong ETF flows.
    • Signposts: CPI <3.5%, BTC ETF net inflow >$500m, labor market softens.
    • Impact: BTC rallies above $115,000, ETH and majors outperform, DeFi TVL +8–12%.
    • Analogs: Q4 2020 post-Pfizer vaccine rally (Bloomberg, 2020), Jan 2023 ETF pump.
  2. Base Case (50%)

    • Trigger: Mixed CPI, labor cooling, ETF flows steady, macro headwinds persist.
    • Signposts: CPI ~3.7%, BTC ETF flows flat, stablecoin supply stagnant.
    • Impact: BTC consolidates $105–110k, ETH range-bound, majors mixed, DeFi TVL stable.
    • Analogs: H1 2023 sideways consolidation (CoinDesk, 2023).
  3. Risk-Off (20%)

    • Trigger: CPI upside surprise, real yields rise, regulatory enforcement headlines.
    • Signposts: CPI >4%, US 10y real yield >2.3%, CFTC/SEC enforcement.
    • Impact: BTC drops below $103k, majors lag, DeFi TVL shrinks 6–10%.
    • Analogs: May 2022 Luna/UST crisis, Aug 2023 US inflation spike.

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionConsensusWhy Crypto Should CareSource
12 NovUS CPI (Oct)US3.6%Key macro risk; downside = crypto rallyBLS
14 NovBTC ETF monthly flowsUS$450mStructural bid for BTC, sentiment driverBloomberg
21 NovECB meetingEURates on holdQT pace, euro liquidity, EUR/USD impactECB
22 NovUK CPI (Oct)UK3.0%GBP risk, stablecoin flowsONS
25 NovChina TSF (Oct)China+2.1tnCredit impulse, Asian stablecoin flowsPBoC
01 DecUS PCE (Oct)US2.8%Core inflation signal, Fed pathBEA
03 DecUS ISM ServicesUS52.5Growth pulse, risk appetiteISM
05 DecNFP (Nov)US+185kLabor market, rate cut oddsBLS

Appendix: Methods & Source Quality

Material discrepancies resolved by prioritizing primary sources (Fed, BLS, ECB, Eurostat, PBoC) and top-tier newswires (Bloomberg, Reuters), supplemented by public crypto dashboards (Dune, CoinGecko). Paywalled data cross-checked against open sources where possible. All figures cited are current as of 05 Nov 2025; structural data >3 months omitted unless material to regime shift.