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Crypto Heads Into Fed Week With a Warning Sign in the Stablecoin Data
Crypto enters a week with two central bank decisions: the Federal Reserve on October 28 and the Bank of Japan on October 30. Markets expect both to hold rates steady, though traders also price December hikes. Stablecoin market cap fell $2.19 billion in the week from October 19 to 25.
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What happened
Crypto enters a week with two central bank decisions: the Federal Reserve on October 28 and the Bank of Japan on October 30. Markets expect both to hold rates steady, though traders also price December hikes. Stablecoin market cap fell $2.19 billion in the week from October 19 to 25.
Confirmed
Global impact / market context
A shrinking stablecoin supply means less cash sitting in crypto trading accounts, which can reduce buying power and trading activity. Combined with lighter trading volume, this points to cautious investors ahead of rate decisions that could change the appeal of risky assets.
Analyst inference
Traders expect steady rates now but December hikes, so guidance from Fed Chair Kevin Warsh and BoJ Governor Kazuo Ueda matters. Decentralized exchange spot volume fell 12.21% to $44.09 billion and perpetual futures volume fell 8.59%, showing cooling activity even as public companies bought more Bitcoin and Ether.
Analyst inference
What to watch
- The Federal Reserve decides on October 28 and the Bank of Japan on October 30, with markets expecting both to hold rates steady while pricing December hikes. Confirmed
- Watch whether stablecoin supply keeps shrinking after the $2.19 billion weekly drop, since that would signal less cash available for crypto trading. Proposed
- Track decentralized exchange volume, which fell to $44.09 billion spot and $142.54 billion perpetual futures, as a gauge of whether traders stay cautious after the central bank guidance. Analyst inference
Affected assets
- ETH — Ethereum
- BTC — Bitcoin
- USDC — USD Coin
- USDT — Tether