- Sebastjan Bele
- Updated: October 23, 2025
- Reading time: 6 min
Volatility Eases, Gold Drops, Trump–Xi Meeting on the Horizon
Volatility is easing after Trump announced a meeting with Xi, sending the VIX down from 29 to 18. Gold, one of the year’s top-performing assets, fell 5.6% since Monday, with some calling it the great rotation to Bitcoin, as spot Bitcoin ETFs recorded $477 million in inflows amid softening gold demand. Bitcoin is trading at $110K and Ethereum at $3,900.
In other news, prime broker FalconX is set to acquire 21Shares, while Coinbase announced the $375 million purchase of crypto investment platform Echo. Solana co-founder Anatoly Yakovenko revealed plans to launch a perps DEX, and MegaETH will offer 5% of its total MEGA supply in an English auction at a baseline $1 million fully diluted valuation. Meanwhile, crypto executives met with Senate Democrats in Washington D.C. to discuss a bill aimed at regulating the digital asset industry as a whole.
News
- Spot Bitcoin ETFs Log $477 Million in Positive Flows Amid Softening Gold Demand
- MegaETH to Offer 5% of Its Total MEGA Supply in English Auction at Baseline $1 Million Fully Diluted Valuation
- Hyperliquid Strategies Looks to Raise up to $1B to Fund HYPE Treasury Purchases
- Bunni DEX Shuts Down, Cites Recovery Costs After $8.4M Exploit
- Tensions Rise as Senate Democrats, Crypto Executives Meet on Sweeping Digital Assets Bill
- Solana Co-Founder Anatoly Yakovenko Designing Perps DEX
- Kadena Winds Down Operations, KDA Token Drops 60%
- Coinbase Buying Echo for $375 Million
- Polymarket Raises Fresh Funding at Up to $1.5 Billion Valuation
- Kraken Says Tokenized Equities Trading Surpasses $5 Billion as Revenues Double
Table of Contents
Markets
Best Performers
Ethena (ENA) gained +11.5%, driven by news that the project is developing two new products to strengthen its USDe and USDtb stablecoin ecosystem, with launches expected within the next three months.
Monero (XMR) rose +4.7% as interest in privacy coins continues to surge following increased regulatory attention across centralized exchanges.
Hyperliquid (HYPE) added +5% after reports that Hyperliquid Strategies aims to raise $1 billion to fund HYPE treasury purchases, highlighting growing institutional interest in the protocol’s ecosystem.
Sector Performance
According to GMCI, the GMCI 30, which tracks the top 30 cryptocurrencies, is down 2.59% over the past week. The GMCI Mid Cap and GMCI Small Cap indices also posted loss of 6.13% and 7.07%, respectively. The majority of sectors are down this week:
- Layer 1 down 4.24%
- Layer 2 down 4.49%
- DeFi down 1.54%
- AI down 5.96%
- RWA down 0.46%
- Gaming down 8.30%
- Meme down 4.02%
US Spot ETF Balances
US Bitcoin Spot ETFs
Total Assets Under Management (AUM) = $152,41 Billion
Weekly Inflows = – $370 Million
US Ethereum Spot ETFs
Total Assets Under Management (AUM) = $22,99 Billion
Weekly Inflows = – $1,95 Billion
*The data for BTC / ETH ETFs can vary, so we use Coinglass as our source.
Market Commentary
Bitcoin
$BTC briefly dipped below the $109K range, grabbing liquidity at the previous range high before bouncing to $114K. However, it failed to reclaim the $110K range low on the first attempt. The move still printed a higher low, showing resilience, and the RSI is starting to pick up, signaling improving momentum.
If BTC successfully reclaims $110K and macro conditions remain supportive, it could present a strong opportunity to position for the next leg up.
Ethereum
$ETH continues to respect the previous range high, which has now flipped into support, showing solid structure despite recent volatility. The RSI remains bearish, and funding rates are neutral, indicating a balanced market without excessive leverage on either side.
Realistically, if Bitcoin regains strength, the broader crypto market will follow due to the typical spillover effect. In that scenario, positioning here offers an attractive risk-to-reward setup, with a take-profit target near the previous ATH (~$5,000) and a stop-loss just below the prior wick lows.
Bitcoin dominance climbed to 59.2%, signaling continued rotation from altcoins into majors as investors seek stability amid market uncertainty.
In traditional markets:
- S&P 500 up 1.02%
- NASDAQ up 0.81%
- Gold down 4.99%, easing after its strong rally last week
The total crypto market cap stands at $3.7T, down ~1.3% from last week’s $3.75T, reflecting mild consolidation following recent volatility. The Fear & Greed Index dipped slightly to 27 (Fear), indicating a persistently cautious sentiment across the market.
What's Next?
The setup into late October remains balanced — leverage has been flushed, volatility is contained, and macro conditions remain supportive. With funding rates near neutral, the market is now less exposed to another liquidation cascade. Bitcoin continues to serve as the structural anchor, supported by steady ETF inflows and tight exchange supply, while Ethereum and major L1/L2 ecosystems are showing early signs of relative strength.
Altcoin liquidity remains highly concentrated in a few large-cap names, with smaller tokens still struggling to attract consistent volumes. In traditional markets, retail investors have been rotating into gold as a hedge against uncertainty, but the 5% decline in gold this week may signal capital shifting toward other risk assets — including Bitcoin and crypto.
Overall, the market remains in “steady mode”, waiting for key macro catalysts such as US–China tariff developments, the Russia–Ukraine conflict, CPI data, and the next Federal Reserve decision. We still believe the underlying structure remains healthy, setting up for renewed upside once macro clarity returns. participants remain defensive, waiting for stability to return before stepping back in.
Meme of the Week
We hope you enjoyed this week’s edition of Diary of a Market Maker! Stay tuned for more insights, updates, and market-moving highlights as we continue to keep you informed and entertained in the ever-evolving world of crypto.
In the meantime, follow us on LinkedIn and X (Twitter) for real-time updates and more!
Until next time, happy trading and stay ahead of the curve!
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. All opinions expressed herein are solely those of the author and do not represent the views or opinions of any entity with which the author may be associated. Investing in financial markets involves risk, including the potential loss of principal. Readers should perform their own research and consult with a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.
Jakob Brezigar
Jakob, an experienced specialist in the field of cryptocurrency market making, boasts an extensive international presence. With Orcabay, he has skillfully managed major operations and deals for a wide array of global stakeholders.
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