Fear Dominates in Cryptocurrency Markets

The increasing tension between the USA and China has had a negative impact on the cryptocurrency markets. In this period of decreased risk appetite among investors, Bitcoin lost 4.8% of its value, and uncertainty prevails in the market.

Macroeconomic Developments and Their Effects

Statements by US President Trump regarding the ongoing trade disagreements have heightened concerns among cryptocurrency investors. Treasury Secretary Bessent's efforts to reduce tensions have proved insufficient. The Fear and Greed Index reflects investor anxiety, showing that it has recently dropped to an "extreme fear" level. Since October 10, Bitcoin has decreased by 12.3%, while Ethereum has lost 11.2%. The total value of the cryptocurrency market has also decreased by 12.5%.

Market Reactions and Future Expectations

Analysts emphasize the market's sensitivity to political developments. With decreasing interest in cryptocurrencies, concerns about banks may also negatively impact crypto assets. Experts predict that if current problems persist, Bitcoin's price may decline further. However, interest rate cuts or ETF approvals could provide a lifeline to the markets.

This Week's Notable Developments

• Publicly traded companies added more than 193,000 Bitcoin to their reserves in the 3rd quarter, increasing their total reserves by 20.7%.
• This week, outflows of $1.23 billion occurred from Spot Bitcoin ETFs and $311 million from Spot Ethereum ETFs.
• Ripple Labs plans to establish a new digital asset treasury to raise at least $1 billion to expand its XRP holdings.

Summary of the Week

• RED: Artificial Superintelligence Alliance (FET) lost one of its members. Ocean Protocol announced its departure from the project, and FET fell by 35.6% in 7 days.
• RED: Among memecoins, the riskiest pump-fun (PUMP) saw a 14.0% drop in 7 days.

The information provided here does not constitute investment advice.