Bitcoin's price weakened after the $116,000 liquidity zone was cleared, signaling bearish momentum and dampening market sentiment. Ethereum is challenging the $4,200 resistance level, with analysts monitoring for signs of a breakout or pullback.

China and the United States achieved a preliminary trade agreement during economic consultations held in Kuala Lumpur on October 25–26. The deal, pending domestic approvals, aims to stabilize bilateral trade relations and reduce global economic uncertainty. No direct impact on cryptocurrency markets was observed. Broader market sentiment may improve due to reduced macroeconomic risks.

Stock markets showed underlying stress on October 16 despite a modest 0.6% drop in the S&P 500, as the Cboe Volatility Index (VIX) surged to its highest level in six months. Structural vulnerabilities linked to leveraged ETFs and technical trading dynamics amplified market sensitivity, according to Wall Street analysts. Bank exposure to equity risk from leveraged products reached an estimated $300 billion, highlighting growing systemic concerns.

White House adviser Kevin Hassett said the US government shutdown is likely to conclude this week, potentially reviving stalled crypto regulatory processes. The shutdown, now in its 20th day since October 1, has paused reviews of multiple altcoin ETF applications. Regulatory decisions on Litecoin, XRP, and Solana funds remain on hold due to the budget impasse affecting SEC operations.

The cryptocurrency market is stabilizing following a sharp correction that liquidated excessive leverage. Bitcoin holds near $110,300 as Ethereum trades around $3,970. Institutional investors are accumulating despite retail sell-offs. According to analysts, the downturn represents a defensive normalization rather than panic.

Many governance tokens lack real utility, making them less valuable despite decentralization goals. Tokens like BNB, HYPE, and PUMP demonstrate that buyback and burn models can enhance long-term price stability. These mechanisms help counter selling pressure and strengthen investor confidence. According to recent data, deflationary tokenomics are becoming a benchmark for sustainable projects.

Bitcoin has recovered to $111,000 after finding support near $102,000–$104,000, with Ethereum holding above $3,994 amid signs of stabilization. Key resistance levels at $114,000 for BTC and $4,107 for ETH are being watched by analysts. A close above these levels could signal a sustained recovery. Data show both assets are consolidating following recent volatility.

Jiuzi Holdings (NASDAQ: $JZXN) announced a strategic cooperation agreement with BitFi on Monday, aiming to advance its shift toward bitcoin-centric financial services. The deal includes phased capital injections and access to BitFi's ~US$2.75 billion TVL across major blockchains.