Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Global Cryptocurrency Turmoil: G20 Regulatory Warnings, New Crypto Bank Approved, and US-China Tensions Shake the Market

Global Cryptocurrency Turmoil: G20 Regulatory Warnings, New Crypto Bank Approved, and US-China Tensions Shake the Market

CryptotickerCryptoticker2025/10/16 11:39
Show original
By:Li Mei Zhang

From a $1.9 billion crypto collapse to new stablecoin and tokenization projects, global markets are struggling amid escalating US-China trade tensions and increasing regulatory pressure.

A Turbulent Week for the Global Crypto Market

The crypto market has entered one of the most turbulent weeks of 2025, with over $1.9 billion in market capitalization wiped out in a single day due to the collision of geopolitical and regulatory shocks. The renewed trade conflict between the US and China, a new warning from the G20 Financial Stability Board (FSB), and new developments in the banking and blockchain sectors have created a perfect storm for digital assets. Bitcoin (BTC) briefly fell below $111,000, as investors scrambled for safe-haven strategies amid rising global uncertainty.

G20 Regulators Warn of “Major Gaps” in Global Crypto Regulation

The FSB has issued a stern warning, pointing out “major gaps” in crypto regulation among major economies. Its report notes that inconsistent frameworks and fragmented enforcement could allow bad actors to exploit cross-jurisdictional loopholes. The committee urges enhanced cross-border cooperation to fill these gaps and prevent systemic risks from escalating further, especially as tokenized assets, stablecoins, and DeFi protocols continue to grow unchecked.

US-China Trade War Escalates: Direct Hit to Crypto Market Sentiment

The market plummeted sharply following President Trump’s announcement of a 100% tariff on Chinese tech imports. Beijing responded with retaliatory measures, reigniting fears of a full-scale trade war.
This geopolitical event hit risk assets hard, and cryptocurrencies were no exception. Bitcoin, Ethereum, and Solana all suffered double-digit intraday losses, while leveraged traders faced the worst liquidations since 2022. Analysts warn that prolonged tensions between the world’s two largest economies could dampen global liquidity and trigger further volatility in digital markets.

Palmer Luckey’s Crypto Bank Gets Regulatory Green Light

In contrast to the turmoil, a historic milestone emerged in the US financial sector: Erebor Bank, co-founded by Oculus founder Palmer Luckey, received preliminary approval from the Office of the Comptroller of the Currency (OCC).
This marks one of the first steps in the US toward fully compliant, crypto-integrated financial institutions. The bank will connect traditional finance with digital assets after obtaining final approval from the FDIC, which many see as a turning point in US crypto banking policy.

UK Pushes for Tokenization of Investment Funds

Across the Atlantic, the UK Financial Conduct Authority (FCA) has proposed groundbreaking regulations allowing the tokenization of investment funds.
This move aims to digitize the fund industry, reducing settlement times and increasing transparency through blockchain. Industry leaders see it as a strategic effort for London to reassert itself as a global financial center in the post-Brexit era, competing with Singapore and Dubai in the Web3 innovation race.

G7 Banks Explore Stablecoins Backed by Major Currencies

Meanwhile, a consortium of G7 banks—including Goldman Sachs, Deutsche Bank, UBS, and Citibank—is reportedly exploring the issuance of stablecoins pegged to major fiat currencies.
These bank-backed digital currencies would serve as regulated alternatives to existing stablecoins such as USDT and USDC, potentially providing a safer bridge between fiat and crypto transactions while complying with central bank standards. If approved, this move could transform cross-border payments and redefine how institutional finance interacts with blockchain.

Market Outlook: Is the Storm Temporary or a Reset?

Despite panic selling dominating the past few days, some analysts believe this correction was overdue after months of leveraged gains. On-chain data shows that large holders (“whales”) are accumulating BTC and ETH at discounted prices, suggesting a possible stabilization phase.
However, the combination of geopolitical uncertainty, tightening regulation, and macroeconomic slowdown means crypto investors should brace for volatility lasting through Q4 2025.

A New Era of Regulated Crypto Finance

Despite the chaos, the latest headlines indicate the crypto industry is maturing. Governments worldwide are pushing for clearer rules, banks are experimenting with regulated digital currencies, and visionaries like Palmer Luckey are building bridges between old and new finance.
However, as the US and China clash in a new round of economic warfare, the path forward for cryptocurrencies remains uncertain—while also being strategically critical.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

EIGEN Large Unlock Incoming: 10% Market Cap Dilution Per Month, Smart Money Exits Early

There will be more unlocks on November 1, and the results will be revealed then.

BlockBeats2025/10/16 18:44
EIGEN Large Unlock Incoming: 10% Market Cap Dilution Per Month, Smart Money Exits Early

The 2025 Velo Global Technology Awards Carnival (Singapore) Concludes Successfully

Global tech elites gather to spark new ideas, driving a new chapter in the digital future.

BlockBeats2025/10/16 18:43
The 2025 Velo Global Technology Awards Carnival (Singapore) Concludes Successfully

BlackRock CEO: Crypto Wallets Surpass $4 Trillion, "Asset Tokenization" Is the Next "Financial Revolution"

BlackRock has revealed its goal to bring traditional investment products such as stocks and bonds into digital wallets, targeting an ecosystem worth over $4 trillions.

BlockBeats2025/10/16 18:43
BlackRock CEO: Crypto Wallets Surpass $4 Trillion, "Asset Tokenization" Is the Next "Financial Revolution"

Chainlink chooses MegaETH to implement the only native real-time oracle, driving the emergence of next-generation high-frequency DeFi applications

Setting a high-performance standard: Chainlink oracle network brings ultra-low latency market data to the first real-time blockchain, ushering in a new narrative for on-chain finance.

BlockBeats2025/10/16 18:43
Chainlink chooses MegaETH to implement the only native real-time oracle, driving the emergence of next-generation high-frequency DeFi applications