Cryptocurrencies have been exceptionally volatile. Bitcoin reached a record above $126,000 in early October, but plummeted to ~$105,000 in one day (Oct 10–11) after news of new U.S. tariffs on China spurred a crypto sell-off. By Oct 14, Bitcoin had partially rebounded to about $115,700, while Ethereum, after falling to ~$3,436, recovered into the mid-$4,000s. Traders are hedging heavily: options markets show investors buying “put” protection on both Bitcoin and Ether for October/December expiries. In contrast to the crypto turmoil, traditional foreign exchange markets saw a modest U.S. dollar bounce. The dollar index has climbed ~3% since mid-September on safe-haven flows amid global uncertainty. Yet most analysts expect the greenback’s strength to be temporary: with the U.S. economy slowing and Fed cuts anticipated, strategists see the dollar weakening later in 2025. For example, Goldman Sachs and Morgan Stanley teams caution that recent dollar gains are “positioning adjustments” and the longer-term trend is still down
. The euro, after a brief rally, dipped about 1.3% in October, and the yen fell ~3% on renewed market stress
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