Following a surge to an all-time high exceeding $126,000, Bitcoin and the wider crypto market have experienced extraordinary volatility. On Friday, the crypto markets witnessed their largest liquidation event ever, amounting to approximately $19 billion.
This wipeout surpassed even the most tumultuous days of the FTX collapse in 2022, highlighting both the market’s growth since then and its inherent fragility.
The sell-off initiated in traditional crypto style. Reports indicate that US President Donald Trump may have misinterpreted China’s export controls, igniting a broad tariff threat that caused risk assets to plummet.
As the markets reeled, some crypto price feeds momentarily displayed zero prices on certain tokens, with traders reporting the loss of years of gains within mere minutes.
After the chaos calmed, Binance found itself in the limelight once more. The exchange has since introduced a substantial relief program aimed at assisting traders affected by the market collapse.
This week’s Crypto Biz explores Binance’s relief commitment, JPMorgan’s latest crypto plans, the ongoing rise of Bitcoin (BTC) treasury companies, and Elon Musk’s analogy of Bitcoin as “sound money.”
Binance announces $400 million relief initiative for traders
Binance has unveiled a $400 million relief program to aid traders impacted by the October 10 market crash, which was reportedly triggered by President Trump’s new tariff warning directed at China.
The incident swiftly escalated into one of the largest liquidation events in the crypto industry, erasing an estimated $19 billion in leveraged positions.
As part of the new initiative, Binance will allocate $300 million in token vouchers to qualifying users. To be eligible, traders must have experienced liquidations on futures or margin positions during the peak turmoil — specifically between Friday 00:00 UTC and Saturday 23:59 UTC.
The exchange also aims to create a $100 million low-interest loan fund for ecosystem participants affected by the volatility. However, Binance stressed that it “does not accept responsibility for users’ losses.”
This initiative comes in response to widespread criticism from traders, many of whom faced technical difficulties that hindered their ability to close positions, alongside interface glitches that occasionally displayed several token prices as zero.
Binance was also associated with an exploit that impacted Ethena’s USDe synthetic stablecoin, which temporarily lost its peg amid the market turmoil.
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JPMorgan gearing up for crypto trading services
From being a skeptic to adopting a progressive stance, US banking giant JPMorgan is gearing up to provide its clients with cryptocurrency trading services, reflecting Wall Street’s ongoing transition toward digital assets.
In a conversation with CNBC’s Squawk Box Europe, Scott Lucas, the bank’s global head of markets and digital assets, stated that while crypto custody isn’t part of JPMorgan’s imminent plans, the introduction of trading services is forthcoming.
“Jamie [Dimon] made it clear on Investor Day that we’re going to engage in trading that, but custody is not on the agenda at the moment,” Lucas mentioned, referencing JPMorgan CEO Jamie Dimon, who has consistently criticized Bitcoin.
Regardless of Dimon’s previous skepticism, JPMorgan has progressively expanded its crypto-related operations in recent years.
The bank had previously collaborated with Coinbase to offer banking services for its customers and has developed its own blockchain-centric payment system, JPM Coin, for its institutional clientele.
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Corporations increasingly investing in Bitcoin
The count of Bitcoin treasury companies has surged by 38% in merely three months, driven by a remarkable interest in Bitcoin as a reserve asset, likely influenced by the success of Michael Saylor’s strategy.
According to Bitwise’s Q3 Corporate Bitcoin Adoption Report, 172 companies are now holding Bitcoin on their balance sheets, with 48 of them emerging in just the third quarter.
The total value of these corporate Bitcoin holdings increased by 28% quarter-over-quarter, reaching $117 billion.
“This participation legitimizes crypto as a mainstream asset class and paves the way for broader financial innovation, including Bitcoin-backed loans and new derivatives markets,” stated Racheel Lucas, an analyst at BTC Markets.
Strategy remains the dominant corporate Bitcoin holder by a significant margin, with over 640,000 BTC, although its accumulation pace has diminished in recent months. MARA Holdings is a distant second with 53,250 BTC listed as assets.
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Elon Musk lauds Bitcoin’s energy-focused framework
Billionaire entrepreneur Elon Musk commended Bitcoin’s sound money principles, asserting that it provides more robust protection against currency debasement than fiat currencies, which can be produced at will.
In a post on X, Musk emphasized Bitcoin’s energy-demanding proof-of-work paradigm, describing it as “impossible to fake energy” — juxtaposing it against government-issued currencies.
Musk’s comments followed a Zerohedge post stating that Bitcoin’s recent spike mirrors a broader “debasement trade,” as investors grow increasingly cautious regarding the US dollar.
Musk is no stranger to Bitcoin. His electric vehicle company, Tesla, once included the cryptocurrency in its balance sheet. Although it sold a portion of its holdings later, Tesla still ranks as the 11th-largest corporate Bitcoin holder, with 11,509 BTC according to industry data.
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