TLDR
- Bitcoin dropped from above $87,000 as oil prices and bond yields rattled investors.
- US Bitcoin and Ether ETFs saw about $1.22 billion in combined weekly outflows.
- More than $1 billion in leveraged crypto positions were liquidated in one day.
- US regulators proposed new exchange rules and dropped two older wallet proposals.
- OKX gained new financial backers, and Samsung revealed USDC payments for Galaxy phones.
Crypto markets had a rough week between October 5 and October 9. Bitcoin and Ethereum both lost ground, even as several companies announced new projects and partnerships.
Bitcoin and Ethereum Slide as ETF Withdrawals Grow
Bitcoin traded above $87,000 early in the week. By Thursday, October 8, it had fallen to about $80,400.
It climbed back to roughly $82,500 by Friday. Even so, it stayed well below its recent highs.
Rising oil prices played a role in the drop. Tensions involving Iran pushed oil costs higher, which made investors nervous about riskier assets like crypto.
Higher US Treasury yields added more pressure. Traders also expect the Federal Reserve to keep interest rates tight for longer.
Sentiment picked up slightly after President Donald Trump said the US would not strike Iran before the November midterm elections. Still, the damage from earlier in the week lingered.
The selloff caused heavy liquidations in crypto derivatives markets. About $1.19 billion in leveraged positions were wiped out in 24 hours leading into Friday.
Ether accounted for around $356 million of those liquidations. Bitcoin made up about $298 million.
Fund flows told a similar story. US spot Bitcoin ETFs lost a net $678.9 million between October 5 and 9.
Spot Ether ETFs lost another $542.2 million over the same stretch. Combined, that adds up to roughly $1.22 billion in outflows, according to Farside Investors.
Ethereum traded near $2,500 during the downturn. Solana, XRP and other major altcoins also dropped in value.
US Regulators Shift Their Approach to Crypto Oversight
On October 5, the Treasury’s Financial Crimes Enforcement Network withdrew two proposed rules. Both involved reporting requirements tied to self-custody wallets and crypto mixing services.
The Commodity Futures Trading Commission moved in a different direction. It opened a public comment period on a new federal framework for leveraged retail crypto trading.
The plan could create a nationally regulated category of crypto trading platforms. Broader rules still depend on legislation that has not passed yet.
OKX, Samsung and Ethereum Push Forward With New Projects
OKX announced new backing from Circle, Ripple, Qube Research & Technologies and Standard Chartered’s SC Ventures. The exchange said the deal valued its business at $25 billion before the new money came in.
Samsung said it will add USDC stablecoin transfers directly into Samsung Wallet. The feature will reach eligible US Galaxy users later this month.
Around 82 million eligible devices could gain access to cross-border crypto payments. Users will not need a separate crypto app to send the funds.
Ethereum’s Glamsterdam upgrade reached its scheduled test on the Sepolia testnet on October 6. This marks another step toward the upgrade’s eventual rollout on the main network.
Sui revealed more than $500 million in funding commitments for Hashi, a new Bitcoin backed finance platform. The project is working toward a phased mainnet launch.
Hardware wallet maker Ledger also began looking into reports of thefts tied to devices sold through a reseller in Southeast Asia. Researchers pointed to possible losses topping $86 million, though the figure has not been confirmed.
Investors are now watching US inflation data due out on October 14. Treasury yields and ETF flows will also be in focus in the coming days.
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