Weekly Crypto Update: Powell’s Dovish Turn And Volatile Market

The crypto market endured another rollercoaster week (Oct 13–20, 2025) — swinging between Fed-driven optimism and a record-breaking flash crash that shook investors worldwide. Total market capitalization fell below $3.7T midweek before rebounding to ~$3.7T, reflecting a modest 2.08% daily recovery but lingering uncertainty. We will cover key reasons and major movers in this weekly crypto update.

Total 24h trading volume spiked to $128.3B (+4.56%), driven by panic selling and opportunistic dip buying. The Fear & Greed Index held at 27 (Fear), while BTC dominance sat at 58.9% and ETH at 12.7%, underscoring capital concentration in majors.

Powell’s Dovish Pivot Fuels Hope

Federal Reserve Chair Jerome Powell’s October 14 speech at the NABE annual meeting in Philadelphia struck a decidedly dovish tone, signaling a clear shift in policy.

• Powell emphasized the U.S. economy is “pulled between risks to growth, jobs, and prices”, pointing to solid AI-led GDP growth but weakening labor data.
• The Fed is winding down Quantitative Tightening (QT) and now prioritizing employment stability over inflation aggression.
• He reaffirmed two more rate cuts in 2025, admitting “there’s no risk-free path,” but confirming the economy’s relative stability.

Markets initially pumped pre-speech, then cooled, but sentiment turned long-term bullish. Looser monetary policy historically drives liquidity inflows into risk assets, bolstering Bitcoin and Ethereum outlooks heading into Q4.

The upcoming October 28–29 FOMC meeting now carries a 95% probability of a 25 bps rate cut (to 3.75%–4.00%), per CME FedWatch. Internal Fed debate continues, with Governor Miran pushing for 50 bps, while Waller and Musalem favor a measured 25 bps cut — a split that will shape November’s tone.

Record $20B Flash Crash Tests Conviction

Volatility peaked October 10–11, when markets witnessed a $19–20B value wipeout — the largest single-day liquidation event in crypto history.

• BTC spiked to $122,574 before collapsing 14% to $104,782, testing $108K support.
• ETH mirrored the fall, dropping 12.2% to $3,436, then rebounding to $4,004 (+3% daily).
• Nearly $9.4B in leveraged positions were liquidated as panic selling intensified.
• Total crypto market cap shed ~$1T in hours, but rebounded 4.4% over the weekend to regain $3.7T.

Analysts traced the crash to automated liquidations, high leverage, and algorithmic trading spirals, though on-chain forensics suggest coordinated shorting or bot-driven panic amplified the drop.

Ecosystem & Institutional Updates

Despite the chaos, fundamentals strengthened:

• BNB Chain saw record 3.6M active addresses, supported by its $45M “Reload Airdrop” for meme traders.
• Monad launched its MON airdrop for 230K+ users, boosting ecosystem activity.
• The U.S. seized $15B in BTC from a forced-labor scam, signaling intensified regulatory oversight.
• NYC’s Digital Assets Office, championed by Mayor Eric Adams, opened to spur blockchain innovation.
• Q3 data: crypto market cap up 16.4% QoQ, stablecoins expanded +$44.5B, DeFi hit $18.27B in volume, and institutional inflows continued rising.

Overall, liquidity and adoption metrics reinforced long-term conviction even amid wild short-term swings.

Weekly Crypto Update : Top Gainers 📈

$XPIN (+311%) – AI-driven DEX surge amid Uptober volatility.
$H (+131%) – Layer-1 integrations expanded real-world adoption.
$MYTH (+76%) – NFT ecosystem rebound.
$LA (+37%) – Governance upgrades increased activity.
$BLESS (+24%) – Stable expansion in daily user growth.

Weekly Crypto Update : Top Losers 📉

$COAI (–61%) – Heavy profit-taking after prior rally.
$NMD (–36%) – Selling pressure post-launch hype.
$ATH (–32%) – Overbought region triggered correction.
$AVNT (–26%) – Volume drop after speculative push.
$FET (–24%) – Weak sentiment amid AI token correction.

Weekly Crypto Update : Market Highlights

• BTC fell 14% intraweek to $104K, rebounded to $109K.
• ETH dropped to $3,436, closed near $4,000 (+3%).
• $19–20B crash marked largest liquidation in crypto history.
• Powell’s dovish speech boosted long-term optimism.
• 95% chance of 25 bps cut at Oct 28–29 FOMC meeting.
• BNB & Monad airdrops reenergized retail participation.
• US seized $15B BTC, highlighting regulatory vigilance.
• Fear & Greed at 27, signaling cautious accumulation zones.

Closing Thoughts

This weekly crypto update captures Uptober’s volatility at its peak: a record liquidation event met by strong institutional resilience and dovish macro winds. Powell’s remarks reaffirmed liquidity tailwinds, while Bitcoin’s quick rebound above $108K hints at deep underlying strength.

Short-term uncertainty lingers heading into the FOMC meeting, but structurally, Q4 remains bullish. Fed easing, ETF flows, and ecosystem growth all point toward renewed upward momentum — as long as investors manage risk amid the turbulence.