In October 2025, the crypto market experienced a long-awaited strong rebound. BTC climbed to approximately $126,200, and ETH broke through $4,957, both recording significant gains. Key factors supporting this rebound were improved macro liquidity and the clearing of industry risks: the Federal Reserve cut interest rates by 25 basis points to a range of 4.00–4.25% since mid-September, and projected another 50–75 basis point cut this year. A weakening US dollar and falling real interest rates significantly increased the appeal of risky assets. Furthermore, deleveraging was completed, easing the pressure on long positions to liquidate, laying the foundation for a rebound. On-chain data showed a simultaneous increase in capital inflows and trading activity, demonstrating fundamental support for the market recovery.

Gold hits new high as risk aversion rises

The international gold price has broken through $4,000 per ounce (data source: Bloomberg, World Gold Council), reaching a record high. The strong gold price has been driven by a weakening US dollar, rising geopolitical risks, and continued increases in central bank gold holdings. Data shows that 43% of central banks plan to further increase their gold holdings, and the share of US dollar reserves continues to decline. In contrast, although Bitcoin is considered "digital gold," its short-term safe-haven properties remain volatile. Historical data shows that Bitcoin has a high correlation with the stock market during risk events, but in the long term, it has the potential to hedge against fiat currency devaluation and inflation risks. Gold and Bitcoin complement each other: the former provides a stable defensive strategy, while the latter offers growth resilience. Investors can stratify their investment portfolios based on their risk appetite.

On-chain funds are healthy: Stablecoins are plentiful and long-term holdings are solid.

On-chain data shows that the total market capitalization of stablecoins has exceeded $310 billion (source: CoinMarketCap), and USDT supply has rebounded to over $178.2 billion (source: Tether), indicating ample OTC liquidity. Whale funds are experiencing structural divergence: some large short-term traders are cashing out at high levels, while selling pressure from long-term holders is easing, and a shift in the flow of "old funds out and institutions in" is emerging. BTC exchange balances have fallen to approximately 2.1 million, indicating a continued tightening of supply. Meanwhile, on-chain activity has also increased—BTC daily active addresses exceed 730,000, and ETH active addresses are approaching 500,000, indicating a recovery in market sentiment.

Options market signals: Low volatility and cautious optimism coexist

The derivatives market is signaling a "low volatility, cautious" outlook. BTC and ETH's 30-day implied volatility is at a two-year low, indicating limited market expectations for short-term volatility. Options skew has turned negative, reflecting increased downside hedging by investors. The put/call ratio rose to 0.72, driven in part by selling cash-secured puts—a strategy that earns premiums in a stable range while positioning for buying at a low point. This suggests that the overall market outlook remains bullish, with consolidation expected.

Sector rotation accelerates: RWA and platform coins lead the rise, and MEME popularity rebounds

Rising prices for major cryptocurrencies are driving capital flows into other sectors. BNB hit a new high of $1,190, bolstered by active trading and an expanding ecosystem. The RWA (Real-Wait-On-Chain) sector saw its market capitalization surge 260% year-to-date, becoming a focal point for institutional investors. BlackRock's on-chain Treasury bond fund, BUIDL, surged to $2.9 billion, demonstrating the accelerating convergence of traditional finance and DeFi. The market is currently in the mid-stage of a "structural bull market," with leading assets steadily rising and thematic sectors rapidly rotating. Investors should focus on fundamentals and capital flows rather than short-term sentiment.

Strategic Recommendation: Structured Products Help with Both Offense and Defense

During periods of volatile upward movement, Matrixport recommends using structured instruments to improve return and risk efficiency. Accumulators: Increase holdings at a discount, suitable for long-term bulls; Decumulators: Reduce holdings at a premium, suitable for cashing out at a high level; FCN fixed-income notes: Earn stable coupons in range-bound markets; Daily Dual Currency Products: Flexible arbitrage for high short-term returns.

The multi-strategy combination can realize the configuration logic of "offensive when advancing and defensive when retreating": even if the market fluctuates, there will be interest income, and once a breakthrough occurs, profits can be made.

Matrixport will continue to pay attention to changes in the macro environment and market structure, helping investors move forward steadily in the new cycle of digital assets.

The above content is from Daniel Yu, Head of Asset Management. This article only represents the author’s personal views.

Disclaimer: Markets are risky, so invest with caution. This article does not constitute investment advice. Digital asset trading can be extremely risky and volatile. Investment decisions should be made after carefully considering your individual circumstances and consulting a financial professional. Matrixport is not responsible for any investment decisions based on the information provided.