Trump Put the Cryptocurrency Market in the Red

Bitcoin

The decline in Bitcoin's value from October 24 to October 31, 2025, was 0.84%. In the early days of the week, BTC showed growth, surpassing the $116 000 mark. However, the rally was wiped out by four consecutive negative sessions from Monday to Thursday.

The main event of the week for the crypto market was the Federal Reserve System meeting regarding the key interest rate. At the meeting, the head of the U.S. Federal Reserve, Jerome Powell, (Jerome Powell), announced another rate cut. The current interest rate is in the range of 3.75%–4%. This should have positively impacted the crypto market. But the opposite happened.

There are two reasons for this. First, the actions of the U.S. Fed this time aligned with investor expectations and were already priced into Bitcoin. Second, Powell hinted that the likelihood of a new rate cut in December is uncertain, given the weakness of the American labor market. This rhetoric was unwelcome to investors.

Moreover, crypto investors expected positive news from the meeting between U.S. President Donald Trump and Chinese President Xi Jinping. They reached agreements on several policy issues. For example, tariffs on Chinese exports to America will decrease from 57% to 47%, and on fentanyl from 20% to 10%. However, Trump and Xi declined to issue a joint statement after the meeting, which is a very bad sign. Although the American president viewed the rendezvous very positively, crypto investors responded with considerable skepticism.

Spot Bitcoin ETFs showed two days of inflows and outflows of funds last week. However, in terms of volume, there was no net balance. The weekly outflow of funds exceeded $600 million. Over the past four weeks, investor sentiment regarding spot Bitcoin exchange-traded funds has been unstable. A week of inflows is followed by a week of outflows, indicating prevailing uncertainty among investors about the future.

From a technical analysis perspective, the initiative belongs to Bitcoin sellers. Indicators support this view. The price is below the 50-day moving average (highlighted in blue). The Chaikin Oscillator is not only in the negative zone but also generated a strong downward signal on October 26 — a bearish divergence, meaning a discrepancy between rising prices and falling indicators. The nearest support and resistance levels on the daily chart are $103 530 and $116 381, respectively.

The Fear and Greed Index, compared to last week, fell by one point. Its current value is 29. This still indicates that fear dominates greed in crypto investor sentiment.

Ethereum

From October 24 to October 31, Ethereum's value decreased by 1.87%. The dynamics of the second-largest cryptocurrency by market cap mirrored Bitcoin: an early-week rally followed by a correction from Monday to Thursday.

The main catalyst for Ethereum's decline, like Bitcoin's, was economic and political turmoil. Nevertheless, the events did not significantly scare off corporate investors. For example, BitMine, a company creating its Ethereum reserves, increased its holdings by 77,055 ETH (almost $300 million) last week.

Spot ETH ETFs ended a two-week negative trend, during which there was a withdrawal of funds. Over the last four trading sessions, investors added $114.18 million more to ETH exchange funds than they withdrew. However, this is much lower than the beginning of October, when inflows exceeded $1 billion. This indicates diminished investor confidence in Ethereum.

The fact that investors who have invested in ETH should not despair is evidenced by the coin reserves on crypto exchanges. According to data from the analytical platform CryptoQuant, as of the end of October 2025, the reserve continues to hit new lows, dropping below 15.9 million ETH.

On Tuesday, October 28, a hard fork Fusaka was deployed on the Hoodi test network. This was the final step before the upgrade is implemented on the mainnet. The event is scheduled for December 3. Previously, Fusaka had been deployed on other test networks: Holesky and Sepolia. The hard fork aims to make Ethereum more scalable. Additionally, the upgrade will reduce costs for network users and developers.

From a technical analysis standpoint, the situation with Ethereum is ambiguous: indicators give conflicting signals. On one hand, the ETH price is below the 50-day moving average (highlighted in blue), indicating a bearish trend. On the other hand, the CMO oscillator crossed above zero, potentially signaling a bullish move. Given the current circumstances, the best approach is to wait until the price consolidates above the resistance level — $4,295.8. Conversely, if the price falls below the support level — $3,436.3, selling pressure will intensify.

Solana

Solana declined by 3.83% from October 24 to October 31. It failed to hold above the psychologically important mark $200 . Over the last twenty trading sessions, Solana's price rose ten times and fell ten times.

One of the main reasons for Solana's decline was the sale of 1.1 million SOL by the investment firm Jump Crypto. The company decided to withdraw funds to buy Bitcoin worth $205 million. Nonetheless, this routine correction did not discourage crypto investors. Looking at the ratio of long to short positions, longs are now five times greater than shorts.

Another negative factor for Solana could have been the relatively modest results of launching two ETFs for this cryptocurrency: The Bitwise Solana Staking ETF $265 BSOL( and The Grayscale Solana Trust )GSOL(, converted from a trust. The first attracted $152.9 million in three days, and the second $2.2 million in two days. Both ETFs are not spot funds, whereas investors have long awaited the launch of such ETFs.

On the positive side, Western Union, one of the oldest companies in international money transfers, chose the Solana blockchain to launch its stablecoin. The new product will be called USDPT. The custodian for this project will be the cryptocurrency platform Anchorage Digital. Western Union’s choice of Solana demonstrates that its infrastructure is among the best in the market, despite the recent slight decline in SOL's price.

From a technical analysis perspective, Solana's trend is downward. This is evidenced by the price being below the 50-day moving average )highlighted in blue(. The dominance of bears is accompanied by decreasing volatility, confirmed by the decline in the ATR indicator. Support and resistance levels on the daily chart remain unchanged from last week: )and $211.5 respectively.

Conclusion

The lack of positive results from Trump’s meeting with Xi Jinping, leaders of the two largest economies in the world, prevented cryptocurrencies from continuing the growth seen earlier in the week. The hawkish stance expressed by the head of the U.S. Federal Reserve also contributed. However, a market crash did not occur, and the correction was moderate.