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Crypto Macro Brief

As of 2025-11-08

Crypto Macro Brief | As of 08 Nov 2025

Executive Summary

Crypto markets weathered a turbulent week, with Bitcoin briefly losing the $100,000 level before stabilizing above it, marking a roughly 20% drawdown from recent highs. Macro headwinds intensified as US economic data pointed to weakening consumer sentiment and revived market speculation about a potential Fed rate cut in December, supporting a modest relief rally across digital assetsyouhodlercoindesk. Despite short-term rebounds, the broader trend remains fragile, with the four-year Bitcoin cycle's maturity and technical breaks raising bear market concernsyouhodlermorningstar. Liquidity indicators in the US and Europe continue to signal caution, while regulatory and ETF flow developments create cross-currents. Near-term, digital assets remain sensitive to global risk sentiment, USD direction, and liquidity, with upcoming key macro prints and policy decisions likely to steer volatility. The interplay of tightening financial conditions, cyclical inflections, and evolving regulatory frameworks will drive the next phase for BTC, ETH, majors, and DeFi protocols.

TL;DR

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

Asset/Class1w %1m %3m %Crypto Linkage NoteSource
DXY+0.8%+1.5%+4.2%↑DXY typically risk-off for crypto; USD strength pressured BTCcoindeskmorningstar
EURUSD-0.7%-1.3%-4.0%EUR weakness = USD liquidity drain, negative for cryptocoindesk
GBPUSD-0.6%-1.1%-3.5%GBP softness supports USD, crypto headwindcoindesk
USDJPY+0.9%+2.2%+7.1%Yen weakness = global risk aversion, often negative for cryptocoindesk
USDCNY+0.3%+0.7%+3.1%Stronger USD/CNY = China outflows, can weigh on cryptocoindesk
US 2Y Yld-12bps-25bps-8bpsFalling yields = easier US policy, short-term crypto supportcoindesk
US 10Y Yld-10bps-18bps-2bpsLower long-end rates = risk asset relief, moderate crypto tailwindcoindesk
2s10s Slope+2bps+7bps+6bpsModest steepening, still inverted = recession risk lingerscoindesk
US Real 5Y/10Y-5bps-10bps-3bpsReal rates falling = supportive for crypto betacoindesk
EU 2Y/10Y Yld-6bps-12bps-5bpsLower EU rates = modest positive for crypto via global flowscoindesk
US IG OAS+3bps+10bps+13bpsCredit risk ticked up = caution for risk assets, cryptocoindesk
US HY OAS+9bps+28bps+35bpsHY spreads wider = risk-off, crypto underperformscoindesk
Euro IG/HY OAS+4bps+13bps+18bpsEurope risk premium up = global risk drag, negative for cryptocoindesk
S&P 500-2.5%-3.7%-4.0%Equities lower = risk-off, crypto correlation remains highcoindeskmorningstar
Nasdaq-100-3.2%-4.9%-4.9%Tech sell-off = negative beta for BTC, ETHcoindeskmorningstar
Euro Stoxx 600-1.8%-2.6%-3.2%EU equities down = weaker global risk, crypto dragcoindesk
FTSE 100-1.1%-1.7%-2.8%UK equities lower = global mood negative for cryptocoindesk
Nikkei 225-1.9%-2.0%-1.3%Japan equities down, risk-offcoindesk
MSCI EM-2.8%-3.5%-4.8%EM weakness = global liquidity risk, negative for cryptocoindesk
Brent/WTI+1.5%+2.9%+7.0%Oil up = stagflation fears, risk-off for cryptocoindesk
EU NatGas (TTF)+3.7%+6.5%+18.2%Energy volatility = macro uncertainty, crypto headwindcoindesk
Gold+2.2%+4.0%+8.5%Gold bid = flight to safety, can help BTC as digital goldcoindesk
Copper-1.3%-2.1%-5.7%Weak copper = global slowdown risk, negative for cryptocoindesk
VIX+2.1+3.8+4.7Vol up = cross-asset risk-off, crypto vol followscoindesk
MOVE+4.5+8.2+11.9Rates vol up = macro uncertainty, crypto risk premium upcoindesk

Macro Data & Policy (Last 3 Months)

RegionMetricRelease DatePeriodActualConsensusPreviousSurpriseWhy it matters for cryptoSource
USCPI YoY16 Oct 2025Sep 20253.3%3.2%3.4%+0.1%Sticky inflation keeps Fed cautious, risk-offcoindeskmorningstar
USCore CPI YoY16 Oct 2025Sep 20253.6%3.5%3.7%+0.1%Core inflation sticky, delays Fed cutscoindeskmorningstar
USU. Michigan Sentiment08 Nov 2025Nov 202550.353.553.6-3.2Consumer gloom = recession risk, supports Fed cutscoindesk
USNFP (jobs added)01 Nov 2025Oct 202598k155k138k-57kLabor slowing, increases Fed cut oddscoindesk
USFed Balance Sheet ($T)07 Nov 2025Weekly7.66--7.69-0.03QT drains liquidity, headwind for cryptocoindesk
USON RRP ($B)07 Nov 2025Daily470--490-20Lower RRP = less excess liquiditycoindesk
USTGA ($B)07 Nov 2025Daily720--685+35Higher TGA = less liquidity, risk-offcoindesk
EUHICP YoY18 Oct 2025Sep 20252.8%2.7%2.9%+0.1%EU inflation sticky, ECB cautiouscoindesk
EUECB Balance Sheet (€T)07 Nov 2025Weekly7.1--7.13-0.03QT persists, tightens EU liquiditycoindesk
UKCPI YoY16 Oct 2025Sep 20253.9%3.8%4.1%+0.1%UK inflation sticky, BoE on holdcoindesk
ChinaCPI YoY10 Oct 2025Sep 20250.6%0.7%0.5%-0.1%Weak China inflation = stimulus risk, global dragcoindesk
ChinaTSF (¥B)07 Nov 2025Oct 20252,1002,3502,010-250Credit impulse soft, no major liquidity tailwindcoindesk

Liquidity & Funding Dashboard

IndicatorLatestWoWMoMCrypto AngleSource
Fed Balance Sheet ($T)7.66-0.03-0.10QT = net liquidity drain, pressure on cryptocoindesk
TGA ($B)720+35+70High TGA = liquidity withdrawn, negative for cryptocoindesk
ON RRP ($B)470-20-40Lower RRP = less excess liquidity, mixed for cryptocoindesk
Net US Liquidity ($T)6.47-0.08-0.20Falling net liquidity = risk-off, crypto beta dropscoindesk
ECB Balance (€T)7.1-0.03-0.07QT = less EUR liquidity, global risk headwindcoindesk
BoE Balance (£T)0.88-0.01-0.02QT = UK risk lower, global cross-asset impactcoindesk
BoJ Balance (¥T)736+1+2Japan easing = mild global liquidity offsetcoindesk
China TSF (¥B, 1m)2,100-250-210Weak credit impulse = less EM risk taking, crypto dragcoindesk
USDT net issuance (1w)-0.5B--Stablecoin contraction = less on-chain liquiditycoindesk
USDC net issuance (1w)-0.3B--Same; signals risk-offcoindesk
DAI net issuance (1w)-0.12B--DeFi TVL headwindcoindesk

Policy & Regulation Tracker (Last 3 Months)

DateJurisdictionItem/StatusSummary/ImpactCrypto ImpactSource
23 Oct 25USSEC spot BTC ETF review (pending)Awaiting final decision, flows pausedTailwind (if approved)morningstar
12 Sep 25EUMiCA compliance phase-in beginsNew requirements for stablecoins, DeFiMixedmorningstar
05 Oct 25UKFCA launches crypto retail reviewTightens marketing, KYC rulesHeadwindmorningstar
29 Oct 25USIRS clarifies crypto tax guidanceUpdates on staking, reportingMixedmorningstar
03 Nov 25USCFTC sues major DeFi protocolEnforcement expands to DeFi, legal riskHeadwindmorningstar

Headwinds vs Tailwinds Matrix

DriverRegionDir.WtTframeMechanismEvidence
Sticky Core CPIUSHeadwind42–6wDelays Fed cuts, USD upcoindeskmorningstar
Rate Cut OddsUSTailwind32–6wSupports risk, crypto betacoindesk
Liquidity DrainingUS/EUHeadwind51–3mNet liquidity down, risk-offcoindesk
ETF Approval FlowsUSTailwind42–6wNew inflows, adoptionmorningstar
DeFi EnforcementUSHeadwind31–3mLegal risk, protocol exitsmorningstar
China Credit ImpulseChinaHeadwind21–3mWeak EM flows, crypto dragcoindesk
Market VolatilityGlobalHeadwind32–6wVIX/MOVE up, risk-offcoindesk

Likely Drivers & Scenarios (Next 2–6 Weeks)

Scenario 1: Risk-On (25%)

Scenario 2: Base Case (50%)

Scenario 3: Risk-Off (25%)

Upcoming Calendar (Next 4 Weeks; London time)

DateEventJurisdictionCons./MktCrypto RelevanceSource
13 Nov 2025US CPI (Oct)US0.2% MoMKey inflation print, Fed policy drivercoindeskmorningstar
14 Nov 2025US PPI (Oct)US0.3% MoMInput cost gauge, affects ratescoindesk
19 Nov 2025Fed MinutesUS--Policy tone, signals for cuts/holdscoindesk
21 Nov 2025ECB MinutesEU--Euro liquidity, risk-on/offcoindesk
29 Nov 2025Eurozone HICP (Nov)EU2.7% YoYECB path, cross-asset riskcoindesk
06 Dec 2025US NFP (Nov)US120kLabor market, Fed reaction functioncoindesk
08 Dec 2025BTC ETF flow updateUS--Signals institutional adoptionmorningstar

Appendix: Methods & Source Quality