The market is showing divergence as gold unexpectedly falls while US stocks rally. Crypto initially rose then corrected, while the market received positive news, especially the Fed's increasingly open stance on crypto.

Market Overview

Stock and Commodity Markets

US equities closed mixed on Tuesday (October 21st, US). The Dow Jones saw a slight gain of 0.47%, the S&P 500 was flat, and the Nasdaq dipped slightly by 0.16%. Stock futures mostly showed an upward trend. Oil saw a minor increase, trading around $57.8 per barrel. Gold experienced a sharp correction, falling to $4139 per ounce.

US stocks saw volatility due to Q3 corporate reports. Netflix stock dropped 6.65% after reporting lower-than-expected Q3 earnings, partly due to a tax dispute with the Brazilian government. Conversely, Beyond Meat stock saw a record surge of 146% during the session and an additional 7.46% after hours, thanks to being added to a "meme stock ETF" by Roundhill and signing a new distribution deal with Walmart.

Crypto Market & ETF Flows

Bitcoin retraced to around $108,000. Most major altcoins declined. The overall crypto market capitalization is at $3.75 trillion. Bitwise estimates that just a 3–4% shift of global capital from gold to Bitcoin would be enough to double the price of BTC.

US BTC spot ETFs saw inflows return on Tuesday, totaling $477.2 million. ETH spot ETFs also attracted $141.7 million in inflows. However, the SOL ETF saw $4.5 million in outflows.

US-China Trade Tension & Global Resource Security

The international market is being affected by constantly shifting macroeconomic factors, particularly the trade tension between the US and China. However, investors seem to have grown accustomed to this situation, so the short-term impact on the market is no longer as severe as before. Although both sides have issued continuous tough statements, most analysts believe this is primarily a negotiating tactic, as both the US and Chinese economies are currently in a slowdown phase. US President Donald Trump suggested he might meet with President Xi Jinping at the APEC conference in South Korea to discuss a "fair and great" trade agreement, though he later left open the possibility that the meeting might not happen. US officials affirmed that the meeting is not yet officially scheduled but is being prepared for, indicating that technical negotiations are ongoing.

Trade tensions between the US and China continue to escalate around rare earth minerals, a strategic resource used in electric vehicles, renewable energy, and national defense. According to new data, Chinese exports of rare earth magnets to the US decreased by nearly 30% in September year-over-year, marking two consecutive months of decline. Observers believe this is a sign that Beijing is tightening export controls, while China maintains it is merely regulating licensed activities to prevent illegal exports. In response, the US and Australia signed an $8.5 billion mineral agreement to boost production and reduce dependence on China, which currently produces 70% and controls 90% of the global rare earth supply.

The US is also considering investing in domestic manufacturing to strengthen long-term energy security. Even so, most investors believe the likelihood of escalation into a full-scale trade war is low, as both economies are showing signs of weakness. The constantly changing information has reduced the market's strong reaction, reflecting a psychological adaptation to the uncertainty in US-China relations.

Amazon Plans to Replace Over 600,000 Jobs with Robotics

According to a New York Times report, Amazon is planning to replace over 600,000 employees with robots in the US by 2033, with the goal of automating 75% of the company's operations. Amazon's robotics division is developing systems that could eliminate about 160,000 jobs before 2027, and this automation is projected to save the company approximately $12.6 billion between 2025 and 2027. Amazon expects to save about 30 cents per product through automation and is attempting to maintain a positive image by using softer terminology like "cobot" (robots collaborating with humans) instead of "AI" or "automation." Amazon has denied the report's content, stating that the leaked documents reflect only "half the truth" and do not fully represent the company's hiring strategy. If this information is accurate, Amazon could transition from being one of the largest job creators in the US to one of the largest job cutters, potentially setting a precedent for other technology companies to follow.

The Fed Endorses Crypto Innovation

The US Federal Reserve (Fed) held its first-ever conference on innovation in the payments sector, bringing together top leaders from crypto, fintech, and traditional finance, including Chainlink, Fireblocks, Circle, Coinbase, Google Cloud, BlackRock, and JP Morgan. The event was aimed at discussing how blockchain, DeFi, stablecoins, and AI are shaping the future of payment systems. The conference focused on four key themes: the connection between traditional finance and crypto, the application of stablecoins, the role of AI in digital payments, and the participation of major financial institutions. The Fed's goal is to gather diverse perspectives to promote the comprehensive modernization and innovation of the US payment system.

Governor Chris Waller of the Fed opened the first Payment Innovation Conference, calling it a new era where crypto and DeFi are officially welcomed into the traditional financial system. He stated that the Fed should "embrace change rather than avoid it," because stablecoins, tokenized assets, and artificial intelligence (AI) are reshaping how the world pays. The Governor emphasized that most innovation should come from the private sector, with the Fed only providing support when necessary to ensure the safety and efficiency of the system. He affirmed that crypto and blockchain are no longer fringe trends but have become a core part of the modern financial system. The Fed stated that its goal is to modernize the payment system, connect the traditional financial sector with new technology, and encourage private sector innovation while ensuring safety and stability. The Fed's public acknowledgment of the role of blockchain and crypto is seen as a historic turning point, marking a shift from a cautious attitude to active integration by the world's largest central bank.

Other Key Crypto & Market Updates

President Trump's crypto advisor is scheduled to meet with lawmakers tomorrow to discuss the crypto market bill. The bill has passed the House and only requires Senate approval before President Trump signs it into law.

Coinbase acquired Echo, an on-chain fundraising platform founded by Cobie, for approximately $375 million, including the "Up Only" NFT. The NFT allows for the production of 8 new episodes of the famous Up Only Show, which was one of the largest crypto livestreams during 2021–2023. Echo helped over 9,000 investors raise more than $140 million. Coinbase plans to integrate Echo into its Sonar platform and expand into tokenized securities and Real-World Assets (RWA).

VanEck proposed launching an ETF that tracks stETH (the token representing ETH staked through Lido), allowing investors to benefit from staking without locking up ETH themselves. This move comes after the SEC affirmed that staking and stETH are not considered securities, paving the way for legal financial products.

Blockchain(.)com, a company providing exchange and wallet services for Bitcoin, Ethereum, and other digital assets, is planning to go public in the US via a SPAC merger. The company is currently valued at approximately $7 billion after its last funding round.

German fintech company Aifinyo AG announced a long-term Bitcoin holding strategy, starting with a 3 million euro BTC purchase and aiming to accumulate over 10,000 BTC by 2027. The plan, supported by UTXO Management, marks Aifinyo as the first publicly listed company in Germany to adopt a large-scale Bitcoin accumulation model. With 8,000 corporate clients across various sectors, the company has stable cash flow to buy and hold Bitcoin periodically.

Sources

• The New York Times
• Fox Business
• Bloomberg
• SEC
• White House Press Office
• Federal Reserve (Fed)
• Chainlink Official Announcements
• Pyth Official Announcements
• Coinbase Official Announcements
• Aifinyo AG Investor Relations
• Amazon Internal Reports
• ECB
• VanEck SEC Filing

Disclaimer

This article is for informational purposes only and should not be considered financial advice. Please do your own research before making investment decisions.