Crypto prices lifted by recovery in risk appetite – US and China are due to talk
|Market snapshot – Crypto prices shake off a tough week
The great crypto selloff of October 2025 seems to have stopped. Prices have rebounded across the board since Friday’s low, as fears about US regional banks evaporate and investors rejoice over news that the US and China will begin talking about trade. Trump and Bessent appear to have rediscovered the truth of Churchill’s dictum that ‘to jaw jaw is better than to war war’. Crypto prices have had a tough summer, but like equity markets they can look forward to a better time ahead according to seasonality, given the historically strong performance on Q4.
In the news
At the policy level, the Financial Stability Board warned of ‘significant gaps’ in global crypto oversight, particularly around cross-border flows and stablecoins, pressing G20 members for tighter coordination. UK scrutiny is also intensifying, with HMRC more than doubling the number of warning letters issued to crypto investors last year as part of a widening clampdown on unpaid capital gains tax.
What we’re watching
It feels like a week where the rebound in risk will be at the mercy of the news – while the US and China are due to talk, investors remain nervous. Meanwhile, the stakes are high in earnings season as Netflix and Tesla report, while the delayed US inflation report on Friday raises the risk of more volatility just as liquidity drops off ahead of the weekend. Price action for crypto assets looks supportive, but the past week has reminded investors that the situation can change rapidly.
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