At the end of October 2025, the cryptocurrency market experienced a decline, which came as a surprise to traders amid several positive signals. CryptoQuant experts explained why this happened and what to expect next.
First of all, they noted the positive aspects, namely:
- The US Federal Reserve decided to cut the interest rate by 0.25% to 3.75%-4% and completed the quantitative easing (QT) program;
- The United States and China have agreed to a “trade truce”;
- the last two interest rate cuts signaled a potential reversal in monetary policy;
- The approval of an ETF for altcoin staking had an additional positive impact.
However, Bitcoin prices and major US stock indices declined. Analysts attribute this to weak demand from institutions.
One of the key indicators, the Coinbase premium (the difference between the Coinbase price and the mid-market rate), has turned negative again. This indicates that institutional investors in the US have lost interest in buying assets despite the positive news backdrop, the statement said.
Historically, such dynamics have preceded localized market corrections. Retail traders responded to macroeconomic news with enthusiasm, but major players demonstrated caution.
The most significant factor was the statements by Fed Chairman Jerome Powell. Although the regulator will end QT on December 1, formally signifying the end of the “liquidity outflow,” Powell stated that a rate cut in December is not guaranteed.
The geopolitical situation remains volatile. Although the US and China publicly declared successful negotiations, insiders called them a “temporary truce,” CryptoQuant stated.
Experts also noted that China specifically expressed displeasure at potential interference in the Taiwan issue. Amid reports of the resumption of nuclear testing in the United States, the overall uncertainty has only increased.
The only positive development was the Nikkei index, which continued to rise, reaching record highs. This occurred amid the Bank of Japan’s continued monetary policy and the stable yen. However, this factor did not offset the negative outlook from the US.
