News/FameEX Morning Crypto News Recap | October 21, 2025

FameEX Morning Crypto News Recap | October 21, 2025

2025-10-21 04:11:29

U.S. Could See Its Longest Government Shutdown

The ongoing U.S. government shutdown is escalating into a major crisis and is now expected to extend into November. Having lasted 20 days, it is on a path that could potentially break the record 35-day shutdown that occurred nearly seven years ago during the Trump administration.

 

U.S. Bank Reserve Ratio Drops Below Critical 13% Threshold

According to the Fed's Nick Timiraos, the U.S. Treasury's efforts to rebuild its cash balances have pushed the crucial ratio of bank reserves to assets below 13%. This level was previously flagged by New York Fed President John Williams as the critical point for assessing adequate reserve levels in the banking system.

 

Prices Surge 2% on Dual Catalysts of Fed Pivot and Risk Aversion

On October 20, spot gold surged 2%. The rally was driven by expectations of Federal Reserve rate cuts and safe-haven buying, with investors focused on trade tensions and U.S. inflation data.

 

Analyst: Investor Sentiment Crashes to Cycle Low as Bitcoin Fear Index Tumbles to 9%

On October 20, analyst Markus Thielen reported the Bitcoin Fear & Greed Index fell to 9%, re-entering "extreme fear." Historically, such sentiment lows often precede short-term rebounds. Analysts suggest that investors should remain cautious until clear catalytic factors emerge on the macro or policy front.

 

Perp Funding Rates Revert to Mean, Yet Broader Market Structure Leans Bearish

Based on CoinGlass data from October 20, the funding rates for major cryptocurrencies on both centralized and decentralized exchanges have normalized to neutral levels following a recent market rebound. However, the overall market sentiment continues to lean bearish. The funding rate mechanism helps tether perpetual contract prices to the spot market. A neutral rate is around 0.01%, with figures consistently below 0.005% signaling prevailing bearish sentiment among traders.

 

Bank of America Strategists: Credit Market Stress Threatens to Spark Equity Sell-Off

According to Bank of America strategists, stress in the credit market could trigger a fresh stock market sell-off. They warn that persistent volatility in the private credit sector may force long-term investors, such as pension funds, to liquidate public equity holdings like index funds to cover potential losses and avoid revaluations in their private asset portfolios.

 

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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