Crypto’s Price Swings Reflect Global Risk Sentiment Amid Unstable Trading Conditions

Bybit PWM achieved a 16.9% fund return, underscoring the crypto market's ability to withstand the volatility of "Uptober"—a period characterized by increased market swings due to global economic uncertainty. This strong showing stands in contrast to the broader crypto industry's recent difficulties, which included a $19.13 billion liquidation in late October after President Donald Trump threatened a 100% tariff on Chinese goods, as reported by

. This event highlighted how susceptible crypto remains to shifts in geopolitics and the economy, with total market value dropping from $4.1 trillion to $3.6 trillion before recovering as trade tensions between the U.S. and China eased, according to the Nasdaq analysis.

The downturn in crypto was made worse by leveraged trading, where investors using borrowed funds saw their losses magnified during the rapid price decline. Analysts pointed out that such situations are becoming more common as global developments—such as Trump's tough trade stance—inject uncertainty into financial markets, the Nasdaq analysis stated. "Crypto serves as a gauge for risk tolerance," said Nic Puckrin, CEO of The Coin Bureau, noting that the market's round-the-clock trading makes it especially reactive to unexpected geopolitical news.

At the same time, traditional industries also faced challenges from the evolving economic environment in 2025. For example, Babcock & Wilcox reported a 300% year-over-year jump in operating income to $6.5 million, attributed to lower overhead and increased demand for energy infrastructure related to AI and data centers, according to

. In a similar vein, A10 Networks credited disciplined execution for its growth, as detailed in , while Benchmark Electronics managed a mixed quarter across its industrial and semiconductor equipment divisions, according to . These outcomes point to ongoing efforts to optimize costs and the resilience of specific sectors despite broader economic pressures.

The relationship between traditional and crypto markets was further demonstrated by Shein's anticipated $2 billion net profit for 2025. The fast-fashion leader countered the effects of U.S. tariffs by raising prices and cutting back on advertising, showing how companies are adjusting to trade disputes, as noted in

. This flexibility contrasts with the current instability in crypto, where even small geopolitical shifts can spark widespread sell-offs.

With these factors at play, investors are being encouraged to proceed with caution. "The sharp swings in crypto highlight the importance of managing risk," said John Paton of Kimura London & White LLP in the Nasdaq analysis. While Bybit's impressive fund performance stands out amid recent market turmoil, the future direction will depend on how global trade issues and the wider economy evolve.