Market Movement:

  • BTC is currently priced at $103,967.00, reflecting a decrease of -3.29%.
  • ETH is priced at $3,473.72, down -6.45%.

Key Events:

  • U.S. Bitcoin ETFs experienced outflows totaling $946 million last week, with iShares Bitcoin Trust losing $400 million.

Trading Signals:

  • Total digital asset fund outflows reached $360 million as investors reacted to the Federal Reserve's cautious stance.
  • A crypto whale opened long positions worth $55 million in BTC and ETH, indicating bullish sentiment.

Narrative Shifts:

  • The crypto market is witnessing a shift as Bitcoin miners like IREN transition to AI infrastructure providers amid tightening margins.
  • Institutional outflows from Bitcoin ETFs suggest a shift in investor sentiment towards alternative assets like Solana, which attracted $421 million in new investments.

Risk Alerts:

  • Balancer suffered a major exploit resulting in an estimated $128 million in losses across multiple chains, raising concerns about security in DeFi.
  • The recent hawkish tone from the Fed has led to significant withdrawals from Bitcoin ETFs, indicating potential volatility in the market.

Opportunities:

  • Solana ETFs attracted $421 million in new investments, highlighting a growing interest in alternative cryptocurrencies.
  • The pivot of Bitcoin miners towards AI infrastructure presents potential growth opportunities in the intersection of crypto and AI technologies.

Flows & Positioning

Bitcoin Whales Accumulate Amid Market Volatility

HyperUnit, a prominent crypto whale, has opened $55 million in long positions on Bitcoin and Ethereum, betting on a market rebound after successfully navigating the recent downturn. This comes after the whale reportedly made $200 million during the US-China tariff crash, indicating a strong belief in the potential for recovery in these leading cryptocurrencies. Additionally, Strategy Inc. has increased its Bitcoin holdings by purchasing 397 BTC for approximately $45.6 million, raising its total to 641,205 BTC valued at around $69.1 billion. This accumulation reflects a continued bullish sentiment among institutional players despite recent market pressures.

ETF Outflows and Institutional Movements Signal Caution

U.S. Bitcoin ETFs experienced significant outflows, totaling $946 million last week, primarily driven by a hawkish tone from the Federal Reserve. The iShares Bitcoin Trust alone saw $400 million in withdrawals, indicating a shift in investor sentiment amidst uncertainty regarding future rate cuts. Conversely, Solana ETFs attracted $421 million in new investments, showcasing a divergence in institutional interest as investors seek alternative digital assets. This trend highlights the ongoing volatility in the crypto market, as traditional Bitcoin funds face challenges while newer products gain traction.

Price Action and Liquidations Create Market Pressure

Bitcoin's price has seen a decline, recently trading around $106,961, down 0.7% as selling momentum from October carries over. This drop has contributed to a broader market liquidation event, with approximately $1.16 billion in positions liquidated over 24 hours, primarily affecting long positions in Bitcoin and Ethereum. Notably, Bitcoin liquidations accounted for about $298 million, while Ethereum saw $273 million in liquidations. This significant selling pressure raises concerns about market stability and investor confidence as traders react to recent price movements.

Market Outlook Amid Institutional Accumulation

The current market dynamics suggest a cautious yet opportunistic approach among institutional investors. While Bitcoin and Ethereum face short-term challenges, the aggressive accumulation by whales like HyperUnit and Strategy Inc. indicates a belief in long-term value. As the market grapples with ETF outflows and liquidation pressures, the focus will likely shift to how these institutional movements influence price recovery and overall market sentiment in the coming weeks.

Corporate & Capital Markets

Ripple’s Crypto Investments Reach $4 Billion with Palisade Acquisition

Ripple has made multiple acquisitions this year, including the purchase of prime broker Hidden Road for $1.25 billion. The company's total crypto investments have now hit $4 billion following the acquisition of wallet tech firm Palisade.

BTC Miner IREN Secures $9.7 Billion Deal with Microsoft

IREN has landed a $9.7 billion partnership with Microsoft, highlighting a significant shift for Bitcoin miners as they transition into AI infrastructure providers amidst tightening margins.

Donut Labs Raises $22 Million for AI-Powered Crypto Trading Browser

Donut Labs announced it has raised $22 million across pre-seed and seed rounds to develop an AI-powered crypto trading browser. This tool aims to merge automation, market analysis, and security into one platform.

HIVE Digital Completes $1.7 Million Data-Center Land Deal

HIVE Digital is accelerating its push into AI infrastructure with a $1.7 million land deal for a data center in Canada, as Bitcoin miners reposition themselves as infrastructure providers for hyperscalers amid soaring demand for AI compute power.

Paradigm Leads $7.6 Million Seed Funding Round for Liquid

Liquid, a crypto perpetual DEX aggregator, has successfully raised $7.6 million in seed funding, with participation from investors including Paradigm and General Catalyst.

Ark Invest Acquires $12 Million in Bullish Shares

Ark Invest has purchased $12 million worth of shares in Bullish, a crypto exchange backed by Peter Thiel, which launched spot trading in the US last month after obtaining a key New York license.

On-Chain & Network

Balancer Exploit Results in $128 Million Loss Across Multiple Chains

Balancer, a multi-chain automated market maker, experienced a significant exploit leading to an estimated $128 million in losses across various blockchains, including Ethereum, Arbitrum, and Base. This incident has prompted Berachain to halt its network and prepare for a hard fork aimed at recovering the lost funds. The exploit has raised concerns about the security of liquidity pools across these platforms, highlighting vulnerabilities in cross-chain operations.

FTSE Russell Partners with Chainlink for On-Chain Benchmark Data

FTSE Russell is set to publish its global equity, FX, and digital asset benchmarks directly on blockchain networks for the first time, utilizing Chainlink's decentralized oracle service. This initiative will make the data accessible to over 2,000 applications across more than 50 public and private blockchains. The integration of traditional market index data into blockchain technology could significantly enhance the programmability and verifiability of financial primitives, marking a notable advancement in the intersection of traditional finance and blockchain infrastructure.

Macro & Policy

FTX Withdraws Controversial Repayment Limitation Proposal Amid Creditor Opposition

FTX has retracted its plan to limit repayments to creditors in 49 jurisdictions, a move that faced significant backlash, particularly from creditors in China. The proposal aimed to exclude approximately $800 million in claims, which represented about 5% of FTX's projected $16 billion in distributions, with China alone accounting for 82% of that amount. The plan would have allowed FTX to forfeit claims if local compliance was deemed impossible, but it was met with formal objections from over 300 Chinese claimants, leading to its withdrawal “without prejudice” on October 30, 2023, leaving open the possibility of future resubmission of the request.

Tokenized Treasuries Surge to $8.63 Billion as Financial Institutions Embrace New Collateral

The market capitalization of tokenized Treasuries has reached $8.63 billion, signaling a growing acceptance among traders and banks for their use in repo market financing. This development reflects a broader trend where traditional financial institutions are increasingly integrating blockchain technology into their operations, potentially reshaping collateral management in the financial sector.

Sam Bankman-Fried Seeks New Trial Nearly Two Years After Fraud Conviction

Oral arguments for a new trial for Sam Bankman-Fried, the founder of FTX, are scheduled for November 4, 2025. His legal team argues that he was “presumed guilty” throughout the trial process, which concluded with his conviction on fraud charges related to the collapse of FTX, where investors lost $8 billion. This appeal comes nearly two years after his sentencing to 25 years in federal prison, highlighting ongoing legal challenges stemming from one of the largest fraud cases in the crypto sector.

Tether Reports $10 Billion Profit Amid Market Developments

Tether has announced a profit of $10 billion, indicating strong financial performance in the stablecoin market. This profit figure reflects the growing adoption and usage of stablecoins in various financial transactions, which may influence regulatory scrutiny and market dynamics in the crypto space.

Google Explores Quantum Money, Potentially Disrupting Blockchain Technology

Researchers at Google are investigating a theoretical concept known as quantum money, which could challenge the foundational principles of blockchain technology. This concept relies on the no-cloning theorem, making tokens physically impossible to replicate, although it remains in the theoretical stage and is not positioned as a direct replacement for Bitcoin or other cryptocurrencies.

Security & Incidents

StakeWise Recovers $21M in Balancer Hack Funds

Ethereum staking protocol StakeWise announced that it has successfully recovered 5,041 osETH ($19 million) and 13,495 osGNO ($1.7 million) from the Balancer hackers. The attackers executed a sophisticated price manipulation attack on Balancer, with total confirmed losses estimated to exceed $120 million. The exploit affected instances and forked versions of the V2 contract active across all chains, with the “stable” pools suffering the most severe impact.

Balancer Suffers Major Breach with $128M in Losses

DeFi protocol Balancer suffered a major breach, with total losses across multiple chains reaching over $128 million. The attack primarily targeted Balancer V2 Composable Stable Pools, and a recent update indicated that StakeWise managed to recover 5,041 osETH ($19.3 million) from the Balancer hacker. This recovery reduced the hacker's total stolen assets from $117 million to $98 million.

US Prosecutors Seek Maximum Five-Year Sentence for Samourai Wallet Founders

US prosecutors are seeking the maximum five-year prison sentence for Samourai Wallet founders Keonne Rodriguez and William Hill, accusing them of operating a crypto mixing service that helped criminals launder at least $237 million in illegal funds. The founders pleaded guilty to operating an unlicensed money-transmitting business, and their sentencing is set for November 6 and November 7.

Stream Finance Halts Withdrawals After $93 Million Loss

Stream Finance announced that it has halted withdrawals and deposits following the disclosure of a $93 million loss in its fund assets. The incident is currently under investigation.

Balancer Audits Under Scrutiny After $100M+ Exploit

Reports indicate that four security companies conducted 11 audits of Balancer’s smart contracts starting in 2021, yet a bad actor was still able to drain millions in staked Ether. This raises concerns about the effectiveness of the audits and the security measures in place.

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