Turning Point in Crypto: How October’s Slump and the US–China Truce Could Ignite a New Cycle

By Spectrum Search Editorial Team

Crypto Analysts Call October Market Slump a Defining Turning Point

As global trade tensions between the United States and China ease following a historic deal, the cryptocurrency community is watching intently — not just for economic stability, but for signs of resurgence in digital asset prices. Despite the recent crypto market crash in October, one leading analyst has called it one of the “bottom days in hindsight,” hinting that this could mark the early stage of the next bull cycle.

While the Crypto Fear & Greed Index has shown modest signs of recovery, market participants remain cautious. The indicator, widely recognised for gauging investor sentiment, climbed slightly from a “Fear” reading of 33 to 37 over the weekend — a subtle increase that points to tentative optimism amid lingering uncertainty. Still, analysts believe the geopolitical detente could become a powerful catalyst in revitalising investor appetite across the blockchain and decentralised finance (DeFi) sectors.

US–China Trade Truce Injects Tentative Optimism into Markets

After a prolonged period of tariff battles, US President Donald Trump and Chinese President Xi Jinping reached a breakthrough agreement this week to suspend “heightened reciprocal tariffs” until November 2026. The White House framed the deal as “a massive victory that safeguards US economic strength and national security while putting American workers, farmers, and families first.”

Trade policies between these two economic giants have repeatedly impacted digital asset markets. Historically, each new wave of tariffs or trade uncertainty has triggered volatility in assets such as Bitcoin (BTC) and Ethereum (ETH). When Trump temporarily lifted restrictions earlier this year, crypto markets responded rapidly — the Fear & Greed Index jumped from “Extreme Fear” at 18 to a healthier 39 within 24 hours. The latest agreement appears to have sparked a similar, albeit smaller, rise in sentiment as traders eye the possibility of renewed institutional confidence.

However, this optimism follows weeks of market turmoil. On 11 October, fears surrounding potential 100% tariffs led to a mass sell-off that wiped out nearly $19 billion in value from crypto markets in just one day. According to blockchain analytics firms, the cascade of liquidations primarily affected leveraged traders who had bet on continued market stability. The scale of losses drew comparisons to earlier shocks analysed in events such as the 2024 liquidation catastrophes that reshaped risk management across exchanges.

Analysts Identify Signs of Cyclical Bottom

Michael van de Poppe, founder of MN Trading Capital, expressed confidence that the October plunge will be remembered as one of the cycle’s lowest inflection points. “It’s one of those bottom days we’ll talk about in hindsight,” he noted on X (formerly Twitter). According to van de Poppe, the current positioning of both Bitcoin and major altcoins indicates the early phase of a broader accumulation trend — typically preceding major bullish expansions.

He added, “That’s why we’re currently still at an early stage of the bull cycle on Altcoins and Bitcoin.” This assessment aligns with a growing narrative among seasoned analysts that October’s volatility may have flushed out speculative positions, laying the groundwork for sustainable growth once macroeconomic clarity returns.

Sentiment speculators and algorithmic traders alike are closely tracking these developments, with institutional liquidity providers expected to re-enter the market if stability persists through the remainder of Q4. Several DeFi tokens have already shown subtle uptrends, hinting that risk appetite is gradually re-emerging. Blockchain recruiters and investors are interpreting this as a precursor to a hiring and funding rebound across the digital asset ecosystem.

White House’s Policy Timeline Extends Stability Window

As part of the deal, the United States committed to maintaining its suspension of heightened tariffs through to November 10, 2026. This clarity, though long-dated, offers markets a defined policy window that could help reduce macroeconomic uncertainty. Crypto trader “Ash Crypto” labelled the deal “bullish for markets,” while another prominent investor, known online as 0xNobler, described it as “GIGA BULLISH NEWS.”

Nevertheless, the immediate effect on cryptocurrencies remains muted. As of Sunday, Bitcoin (BTC) traded at £110,354 and Ether (ETH) at approximately £3,895, posting modest 24-hour gains of 0.26% and 0.84%, respectively. Such minor movements reflect a market still searching for direction following widespread deleveraging earlier in the month.

Industry strategists say that this period of consolidation could help reset the market’s foundation for future rallies. Historical patterns show that post-liquidation phases often attract patient capital, especially from funds looking to accumulate assets during perceived downturns. This cyclical rhythm has reinforced the need for adaptive talent in crypto trading, quantitative analysis, and blockchain protocol engineering — areas increasingly sought after by companies partnered with leading blockchain recruitment agencies like Spectrum Search.

Crypto Recruitment Insights: Talent Shifts Amid Market Adjustments

Market sentiment directly influences hiring sentiment within the blockchain ecosystem. After October’s crash, crypto recruiters reported a temporary pause in speculative project hires but noted sustained demand for core engineering, cybersecurity, and compliance professionals. Firms specialising in smart contract audits or algorithmic trading systems have ramped up searches for senior cryptographers and data scientists to reinforce platform reliability.

As a web3 recruitment agency embedded within the UK’s rapidly expanding digital economy, Spectrum Search has observed that downturns often precede talent realignment. In the months following major liquidations, companies tend to replace short-term contractors with seasoned blockchain developers and C-suite professionals capable of steering long-term innovation. This resilience signals a maturing sector increasingly focused on scalability rather than speculation.

Projects innovating in decentralised finance and tokenisation — many of which are refocusing their strategies after the October slump — have begun reopening roles paused earlier this year. Developers with a track record in cross-chain interoperability, security audits, and DeFi smart contracts remain particularly in demand. The renewed emphasis on sustainable economics aligns with industry recovery narratives explored in stories like real-world asset tokenisation and blockchain talent pipelines.

Market Psychology and Fear Metrics: A Delicate Balance

The Crypto Fear & Greed Index, created by Alternative.me, serves as a barometer for investor confidence. Its recent move from 33 to 37 may appear modest, but such shifts often mark early sentiment reversals. Historically, long periods of “fear” have correlated with outsized returns during recovery cycles, suggesting that contrarian investors could be positioning for renewed upside momentum.

Financial institutions monitoring alternative data sources — including blockchain analytics, social sentiment algorithms, and decentralised exchange flows — have similarly identified stabilising signals. These updates come amid macro improvements such as easing trade tensions and moderating inflation indicators. For blockchain recruiters and institutional investors alike, this confluence of technical and macro sentiment may usher in renewed confidence throughout winter 2024–25.

Crossroads of Economics, Politics, and Bitcoin Dynamics

The delicate intersection of international trade policy and cryptocurrency growth is not new. Analysts have long linked macro data — from employment metrics to tariff fluctuations — with digital asset cycles. The most recent US–China accord introduces a potential cooling effect on volatility, yet the crypto markets remain inherently global, with sentiment shaped by numerous geopolitical catalysts including European regulatory frameworks and Latin American digital adoption policies.

This global dynamic is particularly relevant for organisations seeking to hire across jurisdictions. A web3 recruiter working with decentralised projects today must navigate regulatory nuances, token-based remuneration, and remote-first workforce models — all while assessing candidates fluent in blockchain infrastructure and decentralised governance.

In that sense, October’s market turbulence serves as more than a cautionary economic note. It highlights the strategic necessity for long-term planning not just in portfolio management, but in human capital. As the crypto ecosystem stabilises following the trade accord and economic recalibrations, the competition for exceptional crypto talent and experienced blockchain recruiters is likely to intensify, defining the next phase of digital innovation across DeFi, tokenisation, and decentralised governance.