Last week was a masterclass in contrast, fear versus conviction, volatility versus structure.
As global markets reacted to renewed U.S.–China trade tensions, crypto faced one of its sharpest liquidation waves in 2025, wiping out nearly $19 billion in leveraged positions overnight.
Yet, beneath the chaos, a different current flowed: institutional inflows hit all-time highs, traditional banks explored blockchain-backed stablecoins, and regulators in key markets opened doors to new product access.
What began as a sell-off ended as a signal, volatility may shake traders, but it continues to attract builders, liquidity, and capital. As markets rocked and recovered, one thing is clear, volatility isn't the enemy. It's the proving ground for those who adapt, survive, and lead.
Macro & Institutional News
U.S.–China Trade Shock: Global markets faced turbulence as the U.S. announced 100% tariffs on Chinese tech imports, sparking one of crypto’s largest liquidation events this year. Nearly $19 B in leveraged positions were wiped out in 24 hours, triggering a global risk-off cascade.
ETF Inflows Defy Volatility: Despite the sell-off, global crypto ETFs saw a record $5.95 B inflow, led by Bitcoin ($3.5 B) and Ethereum ($1.4 B). This signals that institutional accumulation continues even amid short-term market panic.
Banks Eye Stablecoins: Ten major global banks, including Goldman Sachs, UBS, and Deutsche Bank — revealed plans to issue multi-currency stablecoins pegged to G7 fiat, strengthening the institutional bridge between traditional finance and blockchain rails.
Regulatory Landscape Shifts: The UK’s FCA officially lifted its ban on retail crypto derivatives, allowing regulated products to re-enter the market. Meanwhile, U.S. regulators maintained a cautious tone as election season approaches.
Market Trends & Institutional Flows
Over the past week, the crypto market saw a sharp correction led by a 9.2% decline in BTC following the U.S. tariff announcement, before showing a modest recovery above $114K. ETH followed a similar pattern, dropping 11.5% to $3.8K before rebounding to $4.1K, maintaining a strong correlation with BTC.
Among altcoins, SOL recorded the largest decline, down 18%, as derivative positions were significantly unwound. XRP, TON, and DOGE also fell between 10–15%, highlighting continued weakness in retail-driven assets.
In the derivatives market, BTC and ETH implied volatility rose by 45%, with a noticeable widening in put skew. This indicates increased demand for downside protection as traders adjusted to heightened market uncertainty.
Price Action Highlights
BTC dropped from $122K → $104K, before rebounding to ~$114K over the weekend. ETH followed, hitting $3,800 lows and reclaiming the $4,100 zone. Altcoin volatility exceeded 80% annualized on several pairs, a sign of structural stress across smaller order books. Notably, funding rates flipped deeply negative, signaling short-term capitulation, but also setting up a potential relief bounce.
Upcoming Catalysts to Watch
- Oct 24 – U.S. CPI Release: A crucial inflation indicator that could influence the Federal Reserve’s policy stance and overall market risk appetite.
- Oct 28–29– FOMC Speakers Line-up: May offer early signals on the Federal Reserve’s potential policy direction ahead of the December meeting.
Coincall's Top Weekly Structure
ETH showing more bullish skew than BTC
Two viable RRs in ETH (5300 / 3600, 4800 / 3600) suggest relative strength or optimism in ETH vs BTC.Market likely expects ETH to recover more aggressively from the crash.
BTC risk appetite is cautious / hedged
The bearish RR in BTC reflects cautious sentiment, investors hedging potential downside rather than aggressively bidding calls.
Active use of Risk Reversals over pure spreads
Instead of vanilla call spreads or put spreads, traders favor asymmetric combos (RRs), this is typical in high-volatility regimes to manage skew & directional exposure.
Strike selection insights
BTC 129K call and 117K put strikes are wide apart, that’s a big directional bet or hedging envelope.ETH combos are more concentrated (5300 / 4800 calls paired with 3600 puts), perhaps indicating a defined view on ETH’s bounce zone.
When Markets Test Resolve
We just witnessed a week where narrative, capital, and discipline collided.
Markets will always test resolve, but those who define risk, rather than chase momentum, build durable positions. Crypto's structural underpinnings are being challenged, but they’re holding, with institutions absorbing more than traders capitulate.
Over the coming days, keep an eye on how capital rotates, how policy noise evolves, and how volatility is both weaponized and hedged. At Coincall, our mission stays the same: to empower your edge through tools, liquidity, and insight.
Coincall. Evolved Options. Safer Trading.
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