- Crypto markets plunge as global macro and political tensions weigh on sentiment.
- ETF outflows and U.S.–China trade risks intensify selling pressure.
- Traders eye Fed’s policy meeting as potential relief for Bitcoin and risk assets.
Crypto markets continued to tumble Friday as another wave of leveraged positions was liquidated, marking one of the toughest weeks for traders this quarter. Bitcoin fell sharply, extending its weekly losses, while ETF outflows and global macro stress weighed heavily on sentiment.
Macro Headwinds Drive the Selloff
The latest downturn comes as a mix of U.S.–China trade tensions, a government shutdown in Washington, and heavy Bitcoin ETF outflows create a perfect storm for risk assets. Binance also saw more than $185 million withdrawn by users, signaling growing fear across the market.
“Bitcoin’s recent drop is largely driven by macro stress,” said Illia Otychenko, lead analyst at CEX.IO. “It’s a clear risk-off environment as traders de-leverage ahead of the Fed meeting.”
According to Otychenko, $100,000 remains the key psychological support level. “If it holds, we could see stabilization,” he said. “But if it breaks, the market might need more time to rebuild momentum.”
Despite the Chaos, Some Stay Bullish
Even after the latest selloff, Bitcoin is still up nearly 60% this year, and some see the correction as a healthy reset. Dom Harz, co-founder of BOB Blockchain, believes short-term turbulence doesn’t change the broader narrative.
“There’s strong conviction in Bitcoin as a utility asset, not just a store of value,” Harz said. “It’s increasingly aligned with global financial markets as it matures.”
Political and Policy Pressure Add to Uncertainty
Adding to the tension, Trump’s aggressive trade stance continues to rattle investors. Analysts at Citrini Research warned that his back-and-forth approach to tariffs will keep volatility high, swinging between threats and de-escalations.
Traders are now watching the Federal Reserve’s October 29 meeting, where markets see a 97% chance of a rate cut. Such a move could ease liquidity pressures and give risk assets, including crypto, some breathing room.
