Market Movement:

  • Bitcoin ETFs gained $839 million while gold funds lost $4.10 billion, highlighting investors’ growing preference for BTC over bullion.
  • Ethereum holds above $3,950 support, signaling bullish momentum despite profit-taking and potential short-term corrections.

Key Events:

  • Mastercard is reportedly in advanced discussions to acquire stablecoin infrastructure firm Zerohash for between $1.5 billion and $2 billion.

Trading Signals:

  • TeraWulf is aiming to raise a total of $575 million to fund its data center plans, with $500 million of convertible notes and plans to raise another $75 million in debt.
  • Stablecoin activity has increased with tokens' total market cap rising by $100 billion year-to-date.

Narrative Shifts:

  • Michael Saylor predicts Bitcoin will rise to around $150,000 by the end of the year, thanks to diminishing volatility.
  • Claude AI predicts that Litecoin could climb to $142 by 2026, growing nearly 50% from its current valuation around $99.

Risk Alerts:

  • Michael Saylor noted that the last 12 months have been the best in the history of the crypto industry, indicating a shift in market sentiment.
  • The potential for short-term corrections in Ethereum could pose risks for traders.

Opportunities:

  • Claude AI suggests that Cardano ($ADA) could see up to 1,200% upside this quarter, indicating significant growth potential.
  • Litecoin remains one of the most established cryptocurrencies, with potential to rally beyond $200 by the end of the year if market momentum strengthens.

Flows & Positioning

Bitcoin Holds $111K After Fed Rate Cut Triggers Liquidations

Bitcoin's price has slipped to approximately $111,000 following the Federal Reserve's decision to cut interest rates by 25 basis points to a range of 3.75%-4%. This move has resulted in $179 million in long positions being liquidated, reflecting heightened volatility in the crypto market as traders reacted to the Fed's cautious tone regarding future rate cuts. Despite the initial drop, Bitcoin managed to stabilize around this level, indicating a potential support zone. Traders are now closely monitoring the $108,900 mark as a critical threshold for maintaining bullish momentum in the near term.

Institutional Activity: Grayscale and Bitwise Launch Solana ETFs

Grayscale Investments has entered the Solana ETF market with its new Solana Trust ETF, which has already garnered significant attention. This launch adds to Bitwise's successful debut, which saw $69.5 million in inflows on its first day, underscoring growing institutional interest in Solana's proof-of-stake blockchain. These ETFs not only provide investors with exposure to Solana but also include staking benefits, potentially enhancing returns. The competitive landscape for Solana ETFs is heating up, indicating a robust demand for crypto investment vehicles among institutional players.

Whale Movements and Market Sentiment Shift

In notable whale activity, a Solana whale has moved $40 million worth of SOL tokens for the first time in five years, raising questions about profit-taking or liquidity supply. This significant transfer could impact market sentiment, especially as institutional staking funds gain traction. Additionally, Ethereum whales have added $135 million in new inflows, suggesting strong accumulation trends. These movements indicate a potential shift in market dynamics as large holders position themselves ahead of anticipated bullish trends.

Market Implications: Fed's Caution and Future Outlook

The Federal Reserve's cautious stance on future rate cuts has left traders uncertain, contributing to Bitcoin's recent price decline. Analysts suggest that the market may be experiencing a "buy the rumor, sell the news" scenario, where traders anticipated a rate cut but reacted negatively to the Fed's lack of aggressive easing signals. As the crypto market adjusts to these developments, the focus will remain on key support levels and potential institutional adoption trends. The interplay between regulatory clarity and market sentiment will be crucial in shaping the trajectory of Bitcoin and altcoins in the coming weeks.

Corporate & Capital Markets

Mastercard in Talks to Acquire Stablecoin Tech Firm Zerohash for $1.5B to $2B

Mastercard is reportedly in advanced discussions to acquire stablecoin infrastructure firm Zerohash for between $1.5 billion and $2 billion, according to Fortune, which cited five unnamed sources with knowledge of the deal. This potential acquisition would outpace Stripe's $1.1 billion purchase of stablecoin startup Bridge last year.

TeraWulf Aims to Raise $575 Million for AI Data Center

Bitcoin miner TeraWulf is aiming to raise a total of $575 million to help fund its Google-backed data center ambitions. The funding will be raised via $500 million of convertible notes with plans to raise another $75 million in debt after the first offering.

SpaceX Transfers $31 Million in Bitcoin

SpaceX has moved 281 Bitcoin (BTC), worth about $31.28 million, to a new wallet, marking its third major transfer in under two weeks. This transfer has fueled industry debate regarding potential changes in digital asset strategy.

Macro & Policy

Germany's Push for Bitcoin Regulation Reform

Germany's Alternative for Germany (AfD) party is advocating for a significant regulatory shift regarding Bitcoin, urging the government to exempt it from the EU's Markets in Crypto-Assets (MiCA) framework. The motion argues that Bitcoin should be recognized as a distinct asset class, similar to digital gold, and not subjected to heavy regulation and taxation, which could hinder innovation and competitiveness in the crypto space. The proposal also calls for maintaining a 12-month tax-free holding period for Bitcoin and classifying private mining and lightning node operations as non-commercial activities, emphasizing the need for a strategic statement that acknowledges Bitcoin as "free, digital money in the 21st century" with implications for energy policy and monetary sovereignty.

Federal Reserve's Interest Rate Decisions Impacting Crypto Markets

The Federal Reserve has implemented its second consecutive interest rate cut, reducing the benchmark rate to a range of 3.75%-4% as of October 29, 2025. This decision aims to stimulate economic activity amid a softening labor market, although Fed Chair Jerome Powell has cautioned against expectations for further cuts, highlighting ongoing inflation concerns. Following this announcement, Bitcoin's price fell by as much as 3.1%, reflecting the market's sensitivity to Fed policy changes. The Fed's strategy includes halting the reduction of its asset portfolio starting December 1, 2025, indicating a cautious approach to monetary policy moving forward.

Binance.US Responds to Political Criticism Over Stablecoin Listing

In response to accusations from Senator Chris Murphy regarding political motivations behind its recent USD1 stablecoin listing, Binance.US has denied any ties to political favoritism linked to President Donald Trump's pardon of founder Changpeng Zhao. The stablecoin, backed by regulated reserves such as US Treasuries, began trading on October 29, 2025. This development has prompted scrutiny from several Senate Democrats, who are calling for a formal investigation into the financial implications of the pardon and its connections to Binance's operations.

Security & Incidents

Chinese Man Arrested in Bangkok Over Alleged $14M Crypto Ponzi Scheme

Thai police have arrested Chinese national Liang Ai-Bing on Wednesday over an alleged $14 million crypto scam tied to defunct platform FINTOCH. FINTOCH promised 1% daily returns, falsely claimed Morgan Stanley backing, and used an actor as a fake CEO before an exit scam in May 2023. On-chain analyst ZachXBT traced the rug pull to $31.6 million in USDT across Tron and Ethereum, calling it 2023’s largest DeFi exit scam. Thai authorities have captured Liang Ai-Bing, who is wanted for allegedly running a multimillion-dollar crypto Ponzi scheme that targeted nearly 100 people in China.

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