FameEX Morning Crypto News Recap | October 21, 2025
2025-10-21 04:12:53U.S. Braces for a Potential Record-Breaking Government Shutdown
The U.S. government shutdown, initially expected to be brief, is escalating into a major crisis and will likely extend into November. Having lasted 20 days, it now threatens to surpass the record 35-day shutdown from 2018-2019 during the Trump administration.
U.S. Bank Reserve Ratio Falls Below 13%
The Fed's Nick Timiraos reports that the U.S. Treasury's rebuilding of its cash account has drained liquidity, causing the key ratio of bank reserves to assets to fall below 13%. This level was previously identified by NY Fed President Williams as the critical lower bound for determining adequate system reserves.
Gold Soars 2% on Fed Cut Hopes and Safe-Haven Inflows
On October 20, spot gold jumped 2%, fueled by dual drivers of anticipated Federal Reserve rate cuts and heightened safe-haven demand amid ongoing trade tensions.
Analysts: Market Sentiment Hits Cycle Low with Bitcoin Fear Index at 9%
The Bitcoin market sentiment has hit a cyclical low, with the Fear & Greed Index dropping to 9% as reported on October 20. Analyst Markus Thielen notes that despite this extreme fear often foreshadowing a rebound, prudence is warranted. Investors are advised to wait for a clear signal from macro or policy to confirm a true trend reversal.
Neutral Funding, The Overall Market Bias Is Still Bearish
Data reveals that after a recent price rebound, funding rates across major CEXs and DEXs have normalized to neutral. This metric, crucial for aligning perpetual contracts with spot prices, uses 0.01% as a baseline. Despite this normalization, the prevailing rates still indicate a cautiously bearish undertone in the market, suggesting traders remain skeptical of a sustained upward trend.
BofA Warns Credit Market Strains Could Spill Over into Equities
Bank of America strategists, led by Savita Subramanian, warn that turmoil in the private credit market poses a direct threat to equities. The concern is that institutional investors like pension funds could be forced to sell their stock holdings, including index funds, to manage losses and maintain portfolio balance if volatility in their private credit assets persists, triggering a broader market decline.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.