The cryptocurrency market experienced renewed pressure on Tuesday, with most major digital assets sliding into the red as escalating geopolitical tensions and upcoming macroeconomic events stirred investor caution.

As of this morning (UTC), the global crypto market capitalization dipped 0.5% to $3.97 trillion, falling below the psychologically significant $4 trillion mark. Out of the top 100 coins, 60 have declined over the past 24 hours, including 9 of the top 10 by market cap.

Despite the broader pullback, trading activity remained robust, with $231 billion in total 24-hour volume.

📉 Key Market Highlights

  • Total market cap: Down 0.5% to $3.97 trillion

  • Bitcoin (BTC): Down 1.4%, trading at $113,144

  • Ethereum (ETH): Down 0.7%, now at $4,104

  • Binance Coin (BNB): Biggest large-cap loser, down 4.2%

  • Solana (SOL): Only top-10 gainer, up 4.1% to $202

  • Top 100 gainer: Story (IP), up 17% to $6.76

  • Biggest loser: Zcash (ZEC), down 19% to $225

Geopolitical Tensions Fuel Market Anxiety

Markets were shaken by rising tensions between the US and China following fresh tariff threats from both sides. As the US-China trade standoff deepens, investors are turning away from risk-on assets, including cryptocurrencies.

Kevin Lee, Chief Business Officer at Gate.io, noted:

"The escalation of tariffs has intensified volatility and contributed to crypto market sell-offs, reflecting macro uncertainty and inflation concerns."

Adding to the anxiety, the crypto market is bracing for a speech by US Federal Reserve Chair Jerome Powell and the Fed’s October 28–29 meeting, where a long-anticipated rate cut could be announced.

“The upcoming Fed rate cut is a critical mitigating factor,” Lee added. “It could ease financial conditions and stabilize risk assets like cryptocurrencies.”

Bitcoin & Ethereum: Still Under Pressure

Bitcoin fell 1.4% to $113,144, despite an intraday high of $115,934 earlier. It is now trading within a consolidation range between $112,700 and $117,600, with key resistance at $116,100 and potential support at $111,200.

  • $BTC Weekly Drop: 10%

  • BTC Monthly Drop: 3%

  • Current price vs ATH ($126,080): Down 10.5%

Ethereum (ETH) is down 0.7% at $4,104, having ranged between $4,066 and $4,283 in the past 24 hours.

  • $BTC Weekly Drop: 13.3%

  • ETH Monthly Drop: 12.7%

  • ETH vs ATH ($4,946): Down 17.5%

If ETH fails to hold above $4,100, it could test support at $3,800 and potentially $3,500. A rebound above $4,350 could signal bullish momentum.

ETF Outflows Extend on Monday

Investor sentiment took another hit as US-based spot ETFs for Bitcoin and Ethereum recorded major outflows:

  • Bitcoin ETFs:

    • Total Outflow: $326.52 million

    • Biggest outflows: Grayscale ($145.39M), Bitwise ($115.64M)

    • Only inflow: BlackRock IBIT with $60.36 million

  • Ethereum ETFs:

    • Total Outflow: $428.52 million

    • BlackRock ETHA led losses: $310.13 million

    • No ETH ETF recorded inflows

These figures reinforce the cautious positioning among institutional investors amid ongoing macro uncertainty.

Structural Weakness Exposed

According to Alexis Sirkia of Yellow Network, the current volatility is exposing deeper flaws in centralized exchanges (CEXs) and risk management systems:

“The 80–90% crash in some altcoins has wiped out 12 times more value than the FTX collapse. It highlights the fragility of CEXs and the failure of auto-deleveraging systems.”

Sirkia called for the future of crypto to shift toward user-controlled, trust-minimized systems built on verifiable smart contracts and protocols.

Outlook: Short-Term Choppy, Long-Term Hopeful

While volatility remains the dominant theme, experts maintain a cautiously optimistic long-term view.

Macro catalysts such as the Federal Reserve’s rate decision, institutional adoption, and on-chain supply tightening could support future price recoveries.

Meanwhile, sentiment remains mixed but slightly improved. The Crypto Fear & Greed Index ticked up from 40 yesterday but remains near the "fear" threshold, indicating ongoing investor unease.

Other Notable Developments

  • Bhutan’s digital identity system is migrating from Polygon to Ethereum, enabling its 800,000 citizens to manage credentials via a public blockchain. Full migration is expected by Q1 2026.

  • Stock markets, in contrast to crypto, surged on Monday:

    • S&P 500: +1.56%

    • Nasdaq-100: +2.18%

    • Dow Jones: +1.29%

    • Fed Chair Powell’s speech later today

Bottom Line: The crypto market remains under macro pressure, but long-term fundamentals appear intact. Expect short-term swings as investors await clarity on monetary policy and geopolitical risks.