Following its peak above $126,000, Bitcoin and the larger cryptocurrency market have faced significant volatility. Last Friday marked the largest liquidation event in crypto history, with approximately $19 billion wiped out.
This event exceeded even the most tumultuous days during the FTX collapse in 2022, highlighting both the market’s growth since then and its inherent fragility.
The sell-off commenced in a characteristic crypto manner. Reports indicate that a misunderstanding by US President Donald Trump regarding China’s export controls led to a tariff threat, causing risk assets to decline sharply.
As the markets trembled, some crypto price feeds momentarily displayed zero prices for certain tokens, resulting in traders losing years of gains in mere minutes.
Once the situation stabilized, Binance was once again in the spotlight, announcing a significant relief program designed to assist traders affected by the market upheaval.
This week’s Crypto Biz explores Binance’s relief initiative, JPMorgan’s latest foray into crypto, the growth of Bitcoin (BTC) treasury companies, and Elon Musk’s remarks comparing Bitcoin to “sound money.”
Binance introduces $400 million relief program for traders
Binance has unveiled a $400 million relief initiative to aid traders impacted by the market crash on October 10, which was reportedly triggered by President Trump’s tariff threat towards China.
The situation quickly escalated, resulting in one of the largest liquidation waves in the crypto sector, erasing an estimated $19 billion in leveraged positions.
As part of the new program, Binance will provide $300 million in token vouchers to qualifying users. Traders must have experienced liquidations on futures or margin positions during the market’s peak turmoil, between Friday 00:00 UTC and Saturday 23:59 UTC, to qualify.
The exchange also intends to create a $100 million low-interest loan fund for participants in the ecosystem affected by the volatility. However, Binance has stated that it “does not accept liability for users’ losses.”
This initiative follows considerable backlash from traders, many of whom experienced technical problems that hindered their ability to close positions, along with interface issues that temporarily showed several token prices at zero.
Additionally, Binance was implicated in an exploit that affected Ethena’s USDe synthetic stablecoin, which briefly lost its peg amid the market turmoil.
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JPMorgan set to launch crypto trading
Transitioning from skepticism to adoption, US banking giant JPMorgan is gearing up to offer cryptocurrency trading services to clients, reflecting Wall Street’s ongoing pivot towards digital assets.
In a conversation with CNBC’s Squawk Box Europe, Scott Lucas, the bank’s global head of markets and digital assets, mentioned that while crypto custody isn’t part of JPMorgan’s immediate plans, trading services are forthcoming.
“I think Jamie [Dimon] was pretty clear on Investor Day that we’re going to get involved in the trading of that, but custody is not on the table at the moment,” Lucas remarked, referring to JPMorgan CEO Jamie Dimon, a long-time critic of Bitcoin.
Despite Dimon’s historical skepticism, JPMorgan has steadily broadened its crypto-related endeavors in recent years.
The bank has previously collaborated with Coinbase to offer banking services for its clients and developed its own blockchain-based payment solution, JPM Coin, for institutional use.
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Corporate interest in Bitcoin surges
The count of Bitcoin treasury companies has increased by 38% in just a quarter, indicating remarkable interest in Bitcoin as a reserve asset, likely fueled by the success of Michael Saylor’s strategy.
According to Bitwise’s Q3 Corporate Bitcoin Adoption Report, 172 companies now hold Bitcoin on their balance sheets, with 48 entering the scene in Q3 alone.
The overall value of these corporate Bitcoin holdings escalated by 28% quarter-over-quarter, reaching $117 billion.
“This involvement helps legitimize crypto as a mainstream asset class and paves the way for greater financial innovation, from Bitcoin-backed loans to new derivatives markets,” said Racheel Lucas, an analyst at BTC Markets.
Strategy remains the largest corporate Bitcoin holder, possessing over 640,000 BTC, although its accumulation rate has slowed lately. MARA Holdings ranks second with 53,250 BTC in its reserves.
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Elon Musk endorses Bitcoin’s energy model
Billionaire entrepreneur Elon Musk lauded Bitcoin’s sound money principles, claiming that it provides better protection against currency debasement than fiat currencies, which can be printed freely.
In a post on X, Musk emphasized the energy-intensive proof-of-work system of Bitcoin, labeling it as “impossible to fake energy”—contrasting it with government-issued currencies.
Musk’s comments followed a Zerohedge post suggesting that Bitcoin’s recent surge is a part of a larger “debasement trade,” as investors become increasingly cautious of the US dollar.
Having previously added Bitcoin to the balance sheet of his electric vehicle company, Tesla, Musk is no stranger to the cryptocurrency. Despite selling part of its holdings, Tesla remains the 11th-largest corporate Bitcoin holder, holding 11,509 BTC, according to industry data.
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