Volatility Returns: Strong US Data Sparks Dollar Rally, Crypto Outflows, and Equity Selloff

Stocks had been continuing their way higher, and metals had retracted slightly before surging again to new highs.

But risk-assets have been sending alerts since Monday, with Cryptocurrencies – usually early runners for profit-taking–seeing some strong outflows (look at the Total Crypto Market cap which is hanging around its December 2024 highs, 10% lower than its most recent record).

Total Crypto Market Cap

Total Crypto Market Cap, September 25, 2025 – Source: TradingView

Equities are following suit, with a third red open to the session, a very rare sign as of late. It seems that the ever-stronger US data has something to do with these moves.

(Monitor ongoing dip-buying, a break towards the daily lows will show a bad sign)

US Indices Daily overlook, Source: TradingView – September 25, 2025

Markets were ecstatic to see gradual cuts in a still-decent US economy, but with the confidence in the FED taking back some advantage due to data-proven decision-making combined with huge beats in GDP, jobless claims and American housing regaining back some edge, cuts are getting priced out sharply and the US Dollar loves it.

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This is leading to some huge whipsawing flows in the current session.

The VIX is coming back to its September highs, metals (particularly Silver and Platinum) were up sharply but giving back their gains, and Cryptos are not having a nice time.

VIX 8H Chart – Moving above its 200-MA for the 1st time since May 2025

VIX 8H Chart, September 25, 2025 – Source: TradingView

Will the VIX close above or below this key point? A close above may trigger further volatility looking forward.

Ed Moya

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.