Crypto traders are still reeling from the chaos that wiped 11%, or roughly $500 billion, off the market’s total value in October.
But there are reasons to be optimistic.
“The macro setup is shifting fast,” wrote David Brickell and Chris Mills, the analysts behind the London Crypto Club’s weekly Connecting the Dots newsletter, on Sunday. “Liquidity indicators are tightening, and the Fed looks close to ending its quantitative tightening programme.”
This setup will “trigger a short-term correction before setting up the next parabolic leg higher into 2026,” they added.
Their comments come after one of the most volatile stretches ever for crypto markets. On October 10, US President Donald Trump’s threat to slam Chinese imports with a 100% tariff triggered the liquidation of $19 billion in leveraged positions.