Markets under pressure: Cryptocurrencies shake off China's decision, and gold and cryptocurrencies bounce back and forth between breakouts and U.S. statements

The first week of November 2025 saw a flurry of economic and financial developments that shook global markets, from surprise tax decisions in China, to escalations in the cryptocurrency market, to monetary policy complications and the US government shutdown. These variables painted a volatile landscape for the markets, amidst a state of caution and anticipation among investors.

🌍 China's game-changing decisions

In an unexpected move, the Chinese government announced the end of tax exemptions for investment gold, with gold bars and coins subject to value-added tax (VAT) from November 1, 2025. The decision is expected to bring about significant changes in investor behavior within China and affect the global gold market, which has long benefited from strong Chinese demand.

Beijing has shown rare flexibility on trade with the US, suspending an additional 24% duties on a range of US goods for a year, and reducing or partially eliminating duties that were as high as 15% on agricultural imports such as corn, wheat, cotton and poultry. It maintained duties of 10% on some other products.

💱 Sharp volatility in the cryptocurrency market

This week, the crypto market witnessed wide corrections, most notably Bitcoin's fall below the $100,000 level, influenced by statements from US Federal Reserve officials calling for caution against cutting interest rates for the time being. These statements triggered a massive sell-off in the digital market.

In another development, Ethereum plunged more than 10% after announcing a hack targeting one of the protocols on its network. The incident reemphasized the security challenges facing blockchain projects.

For its part, Tether revealed a net profit of more than $10 billion during the first nine months of 2025, thanks to its investments in fixed income instruments, reflecting the strength of its financial position and its vital role in the stablecoin market.

In a major strategic move, Ripple announced a partnership with Mastercard to launch a settlement system using the RLUSD stablecoin on the XRPL network, a move aimed at integrating cryptocurrencies into global payment systems.

On the political front, U.S. President Donald Trump stated in a television interview that "the United States is number one globally in digital currencies," emphasizing that the industry should not get out of U.S. control. He also noted during an economic conference in Miami that Bitcoin relieves pressure on the dollar and supports the resilience of the U.S. financial system.

On the other hand, investor and digital legislator David Sachs emphasized that there is real progress in regulating the crypto sector in the United States, increasing the likelihood of stabilizing the business environment for this fast-growing market.

🏦 Hints of a December rate cut

Amid signs of a slowing labor market and falling inflation levels, Federal Reserve Board member Christopher Wohler voiced his support for a rate cut at the December meeting. His comments are in line with market expectations, which are starting to price in the possibility of easing monetary policy before the end of the year.

President Trump declared that inflation is "near zero" and could fall to 1% levels, emphasizing that US markets are on the cusp of new historic highs, at a time when economic indicators are showing mixed signals between slowdown and expansion.

🏛️ U.S. government shutdown makes history

In Washington, the U.S. government shutdown continues, marking the longest shutdown in U.S. history, as a result of sharp disagreements between Republicans and Democrats over the budget. The crisis has affected hundreds of thousands of federal employees and halted a number of vital programs and services.

In an attempt to resolve the crisis, Trump called on the Senate not to leave the capital over the weekend until a deal is reached. In a highly controversial move, the Supreme Court allowed the president to temporarily suspend funding for the SNAP food assistance program, despite protests from human rights organizations and economists.

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