Crypto Market Rebounds: BTC, ETH Lead Gains as DeFi Tokens Surge

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve's dovish stance and anticipated rate cut are fueling volatility in crypto and DeFi markets. Escalating US-China trade tensions and new tariffs are driving inflationary pressures and risk-off sentiment. Global regulatory fragmentation, especially around stablecoins and cross-border oversight, continues to heighten uncertainty for digital assets.

Crypto Market

The crypto market rebounded modestly in the past 12 hours, with Bitcoin up 1.7% to $106,975 and Ethereum rising 2.6% to $3,864, both recovering from recent macro-driven sell-offs. Altcoins outperformed, led by Morpho (+10.5%), Ethena (+9.8%), and Aster (+9.2%), driven by DeFi activity, protocol upgrades, and token conversion events. DeFi and protocol tokens were the strongest sectors, while risk sentiment remains cautious amid ongoing macro and regulatory headwinds.

Today's Outlook

The FOMC will release a key statement today, potentially impacting global monetary policy and crypto market volatility. Fasttoken (FTN) will unlock 20 million tokens at 12 AM UTC, which may affect its price and liquidity. Mars Protocol's v2.4.0 upgrade vote is live, with $MARS stakers able to participate on Neutron Outpost, possibly influencing DeFi governance sentiment.

Fear and Greed Index

56.00% Annual Percentile

28 Fear

Total Crypto Market Cap

$3.63T

1.10%

Total Market Trading Volume

$155.83B

43.47%

Altcoin Season Index

0.00%

Quarterly Percentile

22 / 100

Total Futures Market Open Interest

3.42B

2.93%

Futures

1.02T

1.87%

Perpetuals

II. Industry Updates

Macro-economic Policies

Federal Reserve Chair Powell signaled a likely 25bps rate cut on October 29, with futures markets expecting further easing; this dovish shift is increasing volatility in crypto assets like Ethereum and impacting DeFi liquidity.

President Trump's 2025 tariff expansion is projected to raise $1.3 trillion by 2028, intensifying US-China trade tensions and creating inflationary pressures, which historically drive volatility and risk-off sentiment in Bitcoin and Ethereum markets.

A US government shutdown has delayed key economic data releases, including the September CPI, forcing markets to rely on private proxies; this data gap increases uncertainty and may heighten volatility in crypto and risk assets.

Gold has achieved nine consecutive weekly gains amid trade tensions and dovish Fed signals, with prices near $4,200/oz; this safe-haven demand often correlates with increased BITCOIN inflows as investors hedge macroeconomic risks.

Ethereum spot ETFs in the US saw $232.8 million in outflows on October 17, reflecting risk aversion and macro-driven capital rotation, which may pressure ETH prices and reduce DeFi market depth.

Cryptocurrency Regulatory Trends

Ondo Finance has urged the SEC to delay Nasdaq's tokenized stock trading plan, citing lack of transparency in settlement processes and potential unfair advantages for large institutions, raising concerns over market fairness and investor protection.

The SEC is expected to rule today on Grayscale's spot XRP ETF application; approval could boost XRP prices and institutional inflows, while rejection may delay further regulated crypto ETFs in the U.S.

The G20's Financial Stability Board warns that fragmented global crypto regulations and privacy laws are hindering cross-border oversight, increasing risks from stablecoins and unregulated digital assets.

The Bank of England will begin public consultation on stablecoin regulations on November 10, aiming to finalize rules by end-2026, with proposed holding caps to mitigate financial stability risks.

Ghana is accelerating efforts to pass its first crypto regulation bill by December, seeking to control a $3B market despite lacking enforcement infrastructure, reflecting a broader regulatory push across Africa.

MORPHO (MORPHO): MORPHO surged 11.5% in 24h with $94.5M volume, driven by increased DeFi activity and a recent $6M ETH deposit from the Ethereum Foundation into Morpho Vaults, boosting protocol TVL.

Ethena (ENA): Ethena rose 10.6% in 24h with $519M trading volume, following news of a founder wallet transferring 48M ENA ($20.4M) from CEXs, sparking market attention and DeFi protocol hype.

ASTER (ASTER): ASTER gained 9.3% in 24h with $880M volume, fueled by strong DEX trading and the ongoing APX-to-ASTER token conversion, which increased user engagement and liquidity on the platform.

Smart Money Movements

AAVE whales sold 91,356 AAVE ($20.59M) in 24 hours, while AAVE DAO bought back 100,000 tokens worth $24M since April, signaling active treasury management.

A Uniswap whale transferred 1.697 million UNI ($10.29M) to market maker Wintermute within five hours, highlighting significant liquidity movement.

BlackRock shifted $28.36M in Bitcoin (272.4 BTC) to Coinbase Prime and withdrew $45.47M in Ethereum (12,098 ETH), indicating a major portfolio reallocation.

A dormant Bitcoin wallet linked to Russian entrepreneur Bilyuchenko moved 6,500 BTC ($694M) after three years of inactivity, raising attention to large-scale asset shifts.

Chainlink accumulated 523,158 LINK ($8.5M) in its reserve within two months, using operational income to reduce circulating supply and support long-term growth.

Events to Watch

Oct 18 (Sat)

Federal Open Market Committee (FOMC) will issue a press release, potentially impacting global monetary policy and crypto markets.

Oct 17 (Fri)

Over $100 million in tokens will be unlocked, including ZRO ($42.42M), XPL ($35.19M), MBG ($17.23M); $CONX unlock exceeds 200% of supply.

Oct 17 (Fri)

Japan extends securities-style insider trading rules to crypto, raising global compliance standards for digital assets.

Oct 21 (Tue)

MANTRA (OM) will launch a tokenized real estate project, expanding real-world asset integration in DeFi.

Table of Contents

I. Crypto Market Overview

Key Takeaways

Macro Environment

Crypto Market

Today's Outlook

II. Industry Updates

Macro-economic Policies

Federal Reserve Chair Powell signaled a likely 25bps rate cut on October 29, with futures markets expecting further easing; this dovish shift is increasing volatility in crypto assets like Ethereum and impacting DeFi liquidity.

President Trump's 2025 tariff expansion is projected to raise $1.3 trillion by 2028, intensifying US-China trade tensions and creating inflationary pressures, which historically drive volatility and risk-off sentiment in Bitcoin and Ethereum markets.

A US government shutdown has delayed key economic data releases, including the September CPI, forcing markets to rely on private proxies; this data gap increases uncertainty and may heighten volatility in crypto and risk assets.

Gold has achieved nine consecutive weekly gains amid trade tensions and dovish Fed signals, with prices near $4,200/oz; this safe-haven demand often correlates with increased BITCOIN inflows as investors hedge macroeconomic risks.

Ethereum spot ETFs in the US saw $232.8 million in outflows on October 17, reflecting risk aversion and macro-driven capital rotation, which may pressure ETH prices and reduce DeFi market depth.

Cryptocurrency Regulatory Trends

Ondo Finance has urged the SEC to delay Nasdaq's tokenized stock trading plan, citing lack of transparency in settlement processes and potential unfair advantages for large institutions, raising concerns over market fairness and investor protection.

The SEC is expected to rule today on Grayscale's spot XRP ETF application; approval could boost XRP prices and institutional inflows, while rejection may delay further regulated crypto ETFs in the U.S.

The G20's Financial Stability Board warns that fragmented global crypto regulations and privacy laws are hindering cross-border oversight, increasing risks from stablecoins and unregulated digital assets.

The Bank of England will begin public consultation on stablecoin regulations on November 10, aiming to finalize rules by end-2026, with proposed holding caps to mitigate financial stability risks.

Ghana is accelerating efforts to pass its first crypto regulation bill by December, seeking to control a $3B market despite lacking enforcement infrastructure, reflecting a broader regulatory push across Africa.

Trending Tokens

MORPHO (MORPHO): MORPHO surged 11.5% in 24h with $94.5M volume, driven by increased DeFi activity and a recent $6M ETH deposit from the Ethereum Foundation into Morpho Vaults, boosting protocol TVL.

Ethena (ENA): Ethena rose 10.6% in 24h with $519M trading volume, following news of a founder wallet transferring 48M ENA ($20.4M) from CEXs, sparking market attention and DeFi protocol hype.

ASTER (ASTER): ASTER gained 9.3% in 24h with $880M volume, fueled by strong DEX trading and the ongoing APX-to-ASTER token conversion, which increased user engagement and liquidity on the platform.

Smart Money Movements

AAVE whales sold 91,356 AAVE ($20.59M) in 24 hours, while AAVE DAO bought back 100,000 tokens worth $24M since April, signaling active treasury management.

A Uniswap whale transferred 1.697 million UNI ($10.29M) to market maker Wintermute within five hours, highlighting significant liquidity movement.

BlackRock shifted $28.36M in Bitcoin (272.4 BTC) to Coinbase Prime and withdrew $45.47M in Ethereum (12,098 ETH), indicating a major portfolio reallocation.

A dormant Bitcoin wallet linked to Russian entrepreneur Bilyuchenko moved 6,500 BTC ($694M) after three years of inactivity, raising attention to large-scale asset shifts.

Chainlink accumulated 523,158 LINK ($8.5M) in its reserve within two months, using operational income to reduce circulating supply and support long-term growth.

Events to Watch

Oct 18 (Sat)

Oct 17 (Fri)

Oct 17 (Fri)

Oct 21 (Tue)

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