**China's former Vice Minister for Finance** has emphasized the importance of studying the latest **cryptocurrency policy adjustments**. He argues that these changes are **crucial** for understanding the evolving landscape of digital currencies. As China continues to navigate its stance on cryptocurrencies, the implications of these policies could significantly affect both local and global markets. Keeping abreast of these developments is essential for investors and policymakers alike.

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China's Former Finance Minister Urges Urgent Review of Latest Crypto Policies

## Market Turmoil and the Four-Year Cycle

Experts suggest that some crypto traders are selling off assets because they are adhering to the **classic four-year cycle rulebook**. Historically, **Bitcoin** has followed a four-year pattern, often peaking one year after its halving event and then experiencing a significant crash. With Bitcoin reaching a then-record high of $67,000 in November 2021, many believe the cycle is nearing its end, prompting fears of an impending downturn.

### Recent Price Declines and Contributing Factors

This week, the crypto market has seen notable declines: **Bitcoin dropped over 9%**, **Ethereum fell 6%**, and **XRP plunged 15%**, with some altcoins performing even worse. These drops follow a recent market shock triggered by **President Trump's renewed trade war threats with China**, which led to a record **$19 billion in daily liquidations** last Friday.

### Analyst Insights on Trader Behavior

Matthew Nay, a research analyst at Messari, stated, "I believe some of the sell-off is due to a cohort of market participants stuck to the four-year cycle. If you look at the timing, it's almost exactly four years since we topped last cycle, and when you throw in trade war uncertainty, it allows them to defend their positions more aggressively."

Jonathan Morgan, lead crypto analyst at Stocktwits, attributed this to "mechanical selling" from traders who base their strategies on the cycle's expectations. Jasper De Maere, desk strategist at Wintermute, added, "A lot of retail still trades off that old playbook: buy before the halving, sell when it doesn’t moon. When BTC underperforms post-halving, it shakes their conviction, and you get some forced selling."

### The Case for a Broken Cycle

However, many analysts argue that the **four-year cycle may be breaking** due to evolving market dynamics. De Maere emphasized, "But in my opinion, that strategy’s outdated. The halving just doesn’t move the needle anymore; miner rewards are tiny compared to total trading volume." Nay from Messari believes Bitcoin could return to **all-time highs before the end of the year**, citing factors like **growing institutional adoption** and the impact of **ETFs** and **derivatives**.

Cycle skeptics point to the crypto industry's maturation, with increased integration into **traditional finance**, the rising significance of **altcoins**, and reduced influence from miners on Bitcoin's supply. Morgan noted, "Back when miner rewards dictated supply, it mattered. Now, ETFs, institutional flow, and derivatives dwarf that effect."

### Additional Market Influences

Beyond the cycle debate, other elements are at play, such as the recent **record liquidation event** and geopolitical tensions. De Maere concluded, "Personally, I think while [the four-year cycle] is an interesting concept, the core drivers once used to explain the dynamic of the four-year cycle have just become more irrelevant as BTC and our entire space matures."

Experts believe that some retail traders still follow the four-year Bitcoin cycle rulebook, accounting for part of crypto’s recent decline.

Is the Legendary Bitcoin 4-Year Cycle Finally Breaking? Experts Weigh In

## Bitcoin and Crypto Prices Retreat Amid Regional Bank Concerns

Bitcoin and cryptocurrency prices fell sharply early Friday as U.S. financial stocks sold off on Thursday amid renewed fears surrounding **bad loans at regional banks**. This week's cryptocurrency sell-off comes after a historic liquidation event last week. **Miner Bitfarms** announced plans to raise $500 million in an upsized offering, while **Hive Digital** saw its price target doubled by an analyst.

Bitcoin early Friday fell to near $105,600, retreating more than **5% over the prior 24 hours** and pushing its decline on the week to more than **13%**. The price of bitcoin on Oct. 6 hit a record above $126,000, prior to last week's liquidation event sparked by President Donald Trump's latest tariff threat against China.

Ethereum on Friday traded around $3,780, falling **7% over the past 24 hours** with a **13% drop on the week**.

## Spot Bitcoin ETFs Record Massive Outflows

Meanwhile, **spot bitcoin ETFs** on Thursday recorded **$530.9 million in outflows**, the largest amount since Aug. 19 which saw $523 million in outflows. The **Ark 21 Shares Bitcoin ETF (ARKB)** led outflows at $275.2 million, followed by the **Fidelity Wise Origin BTC ETF (FBTC)** at $132 million.

Ethereum ETFs saw **$56.8 million in outflows** Thursday. The ethereum funds recorded $428.5 million in outflows on Monday, but rebounded on Tuesday and Wednesday with inflows of $236.2 million and $169.6 million, respectively.

## Crypto Liquidations Ramp Up

Crypto liquidations have also ramped up over the past 24 hours, with **$1.23 billion liquidated** from the market, according to CoinGlass data. A majority were **long positions at $920.6 million** as of Friday morning, with $305.5 million short positions liquidated.

Bitcoin accounted for almost **$453.2 million of the losses**, followed by ethereum at nearly $277 million.

## Bitcoin Mining Stocks Tumble

Bitcoin mining stocks tumbled Friday morning, continuing their sell-off from Thursday. **Hive Digital (HIVE)** led declines with a more than **12% drop** in premarket action.

Rosenblatt on Friday doubled its price target on HIVE stock to 10, noting that the bitcoin miner's contracted electrical power deals have become "incredibly valuable in this AI-led market," The Fly reported. The firm expects HIVE stock has additional upside potential as companies execute on their power pipelines. Rosenblatt also believes that the growing optimism about high-performance compute reduces exposure to bitcoin mining at a time when profitability has been pressured by rising network competition.

The firm kept a buy rating on HIVE shares.

Elsewhere, **Bitfarms (BITF)** on Friday announced the pricing of its upsized, **$500 million convertible note offering**. The miner increased its offering from the initially-proposed $300 million level on Wednesday.

Bitfarms plans to use the net proceeds to fund general corporate purposes, and may use some funding or cash on hand to fund capped call transactions. BITF stock skidded **4.9% early Friday**.

## Historic Liquidation Sparks Major Sell-Off

The price of bitcoin briefly dropped below $109,000 last Friday evening, while ethereum retreated near $3,620 after President Donald Trump threatened additional tariffs on China.

CoinGlass reported that over **1.6 million crypto traders** were squeezed into liquidating positions on Friday, with over **$19.13 billion liquidated** from the crypto markets.

JPMorgan analysts in a Thursday note reported that the liquidations were likely driven by **crypto-native investors**, rather than institutional firms or retail investors, The Block reported. Perpetual futures, a product that crypto-native traders typically use, experienced a sharp deleveraging between Oct. 10 and Oct. 14, according to the firm. Open interest in bitcoin and ethereum perpetual contracts fell **40% in dollar terms**, indicating that crypto-native investors were the primary drivers of the correction. Meanwhile, bitcoin ETFs saw a more modest $220 million in outflows during that period, with ethereum ETFs recorded $370 million in outflows. CME bitcoin futures, which gauges institutional positioning, saw few liquidations, according to JPMorgan.

Bitcoin, crypto prices fall amid liquidations, ETF outflows. Bitfarms announces $500 million offering, Hive sees price target doubled.

Bitcoin Plunges 13% as $1.23B Liquidations Hit Market - Miners Tumble Amid Bank Fears

## Gold's Meteoric Rise to $30 Trillion Market Cap

**Gold (XAU)**, traditionally viewed as a store of value but classified as a **"non-productive" asset**, has skyrocketed to a market capitalization exceeding **$30 trillion** in 2025. This staggering figure dwarfs not only **digital gold bitcoin** but also major U.S.-listed tech giants.

The price of gold per ounce has surged **66%** to a record high of approximately **$4,380**, with prices climbing **13%** in October alone, according to TradingView data. This rally has propelled gold's market cap to about **$30.42 trillion**, based on an estimated above-ground global supply of 216,265 metric tonnes as reported by the World Gold Council.

![Gold bars](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F20906a093fa5e5fa5736ae49dcd7c986f3491d30-1920x1080.jpg%3Fauto%3Dformat&w=3840&q=75)

*Gold's market cap zooms to $30 trillion.*

### How Gold Compares to Other Major Assets

**Nvidia (NVDA)**, considered the most consequential company globally due to its foundational role in powering the AI revolution, holds a distant second place with a market capitalization of **$4.42 trillion**. It is followed by Microsoft (MSFT), Apple (AAPL), Alphabet (Google), silver, and Amazon (AMZN).

Meanwhile, **bitcoin (BTC)**, often referred to as digital gold, ranked eighth with a market cap of **$2.17 trillion**.

## Non-Productive Gold Warns of Economic Strain

Gold's premium to tech giants doesn't necessarily reflect a positive outlook for the global economy because it is a **non-productive asset**. Unlike stocks, bonds, or real estate, **gold does not generate dividends, interest, or rent**, nor does it contribute directly to economic activity. Its price is directly tied to its appeal as a traditional safe haven and store of value asset as opposed to underlying cash flow or productive output.

The fact that it trades at a significant premium to the most valuable tech companies is likely a **telltale sign of economic malaise**. It indicates that **investors are seeking refuge in perceived safe havens** amid broader economic uncertainty.

**Ken Griffin, CEO of Citadel**, recently expressed significant concern over the trend of investors viewing gold as a safer asset than the U.S. dollar, calling the yellow metal's record rally a **cautionary signal about the U.S. economy's stability**.

### Drivers Behind Gold's Rally

According to analysis, the rally has been catalyzed by:
- **Fiscal imprudence in the U.S. and across the advanced world**
- **Sticky inflation**
- **Geopolitical tensions**
- **Expectations for Fed rate cuts**

The consensus is for the uptrend to continue.

## Bitcoin's Position in the Gold Rush

Features that describe gold as a non-productive store of value also apply to bitcoin. However, while **gold's price has rallied sharply this year, surging over 60%**, **bitcoin has gained a more modest 16%** in 2025. Industry observers are optimistic that when the gold rally eventually cools, **investment funds may rotate into the relatively cheaper digital store of value**.

Investors are increasingly pouring money into non-productive gold, raising alarm for the global economy. BTC lags.

Gold's $30 Trillion Market Cap Surge: A Warning Sign for the Economy and Bitcoin?

**Bitcoin Stabilizes After Market Turbulence**

Bitcoin has found stability following a volatile period, with the price hovering around **$112,000** after a recent dip below **$110,000**. This recovery was partly driven by a **bullish intervention from Elon Musk**, who surprised the market with his support for Bitcoin and warnings about fiat currencies.

![Federal Reserve chair Jerome Powell](https://imageio.forbes.com/specials-images/imageserve/633c2741f081733a2a78b209/Federal-Reserve--Jerome-Powell--Fed--bitcoin--bitcoin-price--crypto--image/960x0.jpg?height=482&width=711&fit=bounds)
*Federal Reserve chair Jerome Powell has indicated the Fed may soon end its quantitative tightening program, a move that could boost Bitcoin prices. (Getty Images)*

**Federal Reserve Signals End to Quantitative Tightening**

Federal Reserve Chair **Jerome Powell** announced that the Fed is nearing the end of its **quantitative tightening** program, which has reduced the balance sheet from **$9 trillion** to **$6.6 trillion**. In remarks at the National Association for Business Economics conference, Powell stated, "We may approach that point in coming months," emphasizing close monitoring of economic indicators. This shift is seen as dovish and could inject liquidity into markets, benefiting risk assets like Bitcoin.

**Market Reactions and Updates**

On October 16, Bitcoin experienced another **flash crash**, dropping to around **$108,500** before rebounding above **$111,000**. This volatility underscores the market's sensitivity to external factors. Federal Reserve Governor **Stephen Miran** highlighted increased economic risks from U.S.-China trade tensions, advocating for a **50 basis point interest rate cut** to mitigate negative impacts, though he expects a **25 basis point cut** this month. Miran warned that restrictive monetary policy could exacerbate economic shocks, with trade disputes adding uncertainty.

**Institutional and Economic Factors Driving Bitcoin**

The potential end of quantitative tightening coincides with expectations of further **interest rate cuts** by the Fed, with markets anticipating multiple reductions by year-end. **Bitcoin ETFs** have reached record levels as Wall Street institutions increase their investments. Analysts note that lower rates and macroeconomic uncertainties, such as the U.S. government shutdown, are reinforcing Bitcoin's role as a **digital hedge**, similar to gold. The upcoming Federal Open Markets Committee meeting on October 28-29 is viewed as a key catalyst for Bitcoin's price direction, potentially leading to a rally or consolidation.

![Bitcoin price chart](https://imageio.forbes.com/specials-images/imageserve/68ef8e862fa0ed9211d10f9b/bitcoin--bitcoin-price--Federal-Reserve--Fed--Jerome-Powell--chart/960x0.png?height=535&width=711&fit=bounds)
*Bitcoin's price has shown significant volatility, with recent surges and dips reflecting divided market sentiments. (Forbes Digital Assets)*

**Broader Implications and Expert Insights**

David Morrison, a senior market analyst, pointed out that Powell's focus has shifted from inflation to the **labor market**, indicating a broader economic concern. The Fed's actions are closely watched, as rate cuts and balance sheet adjustments could fuel a **bull run** in cryptocurrencies. Gadi Chait of Xapo Bank emphasized that institutional investment and Fed policies are key drivers, with Bitcoin's performance in 'Uptober' hinging on these developments.

Federal Reserve chair Jerome Powell has said the Fed is fast approaching a point when it can end its quantitative tightening balance sheet reduction program...

China's Former Finance Minister Urges Urgent Review of Latest Crypto Policies

Summary:

China's former Vice Minister for Finance stresses the need for urgent review of crypto policies.

Recent policy adjustments could have significant implications for the global cryptocurrency market.

Understanding these changes is essential for investors and policymakers.

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