Trading moment: Bitcoin falls below the 110,000 mark, and market panic continues to spread

# 1. Market Observation

As the "explosion" in the U.S. credit market has fueled a rise in risk-averse sentiment and expectations of Federal Reserve interest rate cuts have strengthened, spot gold has hit a new all-time high for the fourth consecutive trading day, surging by $115 in a single day to above $4,300 per ounce. Against this backdrop, Bitcoin's "safe-haven attribute" has not been evident; instead, its price movement shows a higher degree of synchronization with U.S. stock tech stocks. Bitcoin fell below the $110,000 mark overnight, continuing the "1011 crash" trend from last weekend. In response to this, JPMorgan analysts stated that the sharp correction in the crypto market last week, accompanied by large-scale liquidations, may have been driven by crypto-native investors rather than institutional or retail ETF holders.

Over the past 24 hours, the liquidation amount has reached $700 million, affecting more than 200,000 traders, and the Fear & Greed Index has dropped to 22, indicating an extreme fear state. A report from Glassnode pointed out that without a new catalyst to push the price back above $117,100, the market will face the risk of further contraction toward the lower limit of this range. Historically, when the price fails to hold this range, it often signals the onset of a prolonged medium-to-long-term correction. Meanwhile, the recent increase in profit-taking activities by long-term holders may indicate "demand exhaustion."

According to SoSoValue data, on October 16 (yesterday), the total net outflow of Bitcoin spot ETFs reached $536 million, with none of the twelve ETFs recording a net inflow. Among them, ARKB (managed by Ark Invest and 21Shares) saw the largest outflow.

However, a growing number of sovereign countries have begun to pay attention to Bitcoin, and some have even started to hold Bitcoin as part of their asset reserves. Nevertheless, Ray Dalio, founder of Bridgewater Associates, believes Bitcoin has shortcomings, and central banks around the world will not hold Bitcoin. He also argues that stablecoins are not a good means of storing wealth—essentially, they can be exchanged for the corresponding currency but generate no interest. From a financial perspective, therefore, holding stablecoins is less favorable than holding interest-bearing fiat currency assets. The advantage of stablecoins lies in their global usability; they function like a clearing system that facilitates transactions, making them suitable for holders who do not care about earning interest. Regarding whether stablecoins can solve the U.S. debt issue, he stated that if stablecoin buyers already hold U.S. debt, it is equivalent to moving U.S. debt from one pocket to another. Whether this will create new demand for U.S. debt remains to be seen.

In terms of institutional holdings of Ethereum, according to the latest report from Bitwise, listed companies hold 4.63 million ETH (valued at $19.13 billion) in their reserve pools, accounting for approximately 4% of the total supply. Of all the ETH currently held by these companies, 95% (about 4 million ETH) was purchased in the third quarter of this year. SharpLink Gaming, an Ethereum treasury company, announced that it has raised $76.5 million by issuing shares at $17 per share (a 12% premium to the market price) and may raise approximately $79 million by issuing new 90-day premium purchase contracts at $17.50 per share (a 19% premium to the market price). BitMine is also transforming into a public vehicle primarily holding ETH, with a market value exceeding $15 billion and holdings of over 3 million ETH (accounting for about 2.5% of the total supply). Its goal is to increase this proportion to 5% and generate returns through staking while being included in major indices. Tom Lee, Chairman of BitMine, also warned that many DATs (Digital Asset Trusts) are now trading below their net asset value, suggesting that the bubble may have burst.

Additionally, SoSoValue data shows that among all Ethereum spot ETFs yesterday, only BlackRock's ETHA recorded a net inflow, while all other products saw net outflows. In terms of technological development, Christine Kim, Vice President of Research at Galaxy, published an article summarizing the 167th Ethereum Core Developers Consensus Call. This week, developers initially finalized the mainnet activation timeline for the Fusaka upgrade.

# 2. Key Data (as of 13:00 HKT on October 10)

(Data Sources: Coinglass, Upbit, Coingecko, SoSoValue, Tomars)

- Bitcoin: $108,744 (+16.25% YTD), daily spot trading volume of $82.62 billion  

- Ethereum: $3,910 (+17.16% YTD), daily spot trading volume of $64.62 billion  

- Fear & Greed Index: 22 (Extreme Fear)  

- Average GAS: BTC: 1 sat/vB, ETH: 0.13 Gwei  

- Market Share: BTC 58.9%, ETH 12.8%  

- Upbit 24-Hour Trading Volume Ranking: XRP, BTC, ETH, SOL, DOGE  

- 24-Hour BTC Long/Short Ratio: 48.82% / 51.18%  

- Sector Performance: DePIN sector down 5.88%, GameFi sector down 5.35%  

- 24-Hour Liquidation Data: A total of 205,791 traders globally were liquidated, with a total liquidation amount of $720 million (including $235 million in BTC liquidations, $167 million in ETH liquidations, and $72.97 million in SOL liquidations)  

- BTC Medium-to-Long-Term Trend Channel: Upper edge ($114,919.40), Lower edge ($112,663.37)  

- ETH Medium-to-Long-Term Trend Channel: Upper edge ($4,158.11), Lower edge ($4,075.77)  

*Note: When the price is above both the upper and lower edges, it indicates a medium-to-long-term bullish trend; conversely, it indicates a bearish trend. If the price fluctuates within the range or repeatedly crosses the cost range in the short term, it signals a bottom-building or top-building phase.

# 3. ETF Flows (as of October 16)

- Bitcoin ETFs: -$526 million  

- Ethereum ETFs: -$56.88 million  

# 4. Today's Preview

- U.S. Treasury seeks innovative comments on stablecoin regulation under the GENIUS Act  

- U.S. SEC Crypto Task Force to host a Financial Regulation and Privacy Roundtable on October 17  

- ETHShanghai 2025 Hackathon to officially launch on October 18  

- Cronos (CRO) to unlock approximately 1.017 billion tokens, accounting for 1.7% of the current circulating supply, with a value of about $214 million  

- Caldera (ERA) to unlock approximately 51.63 million tokens, accounting for 5.16% of the current circulating supply, with a value of about $27.9 million  

- Lombard (BARD) to unlock approximately 11.35 million tokens, accounting for 1.14% of the current circulating supply, with a value of about $11.49 million  

- Top Gainers among Top 100 Cryptocurrencies by Market Cap Today: PAXG (+3.9%), COAI (+3.5%), XAUT (+3.3%), BDX (+2.5%), FTN (+2.5%)  

# 5. Hot News

- Tether froze a total of 13.4 million USDT across 22 addresses on the Ethereum and Tron networks yesterday  

- Analysis: A suspected single entity controls half of the high-yield COAI wallets, with total profits reaching $13 million  

- DSRV, a South Korean blockchain infrastructure provider, completed a Series B financing round totaling approximately $21.12 million  

- Deling Holdings entered into a cooperation with Antalpha, planning to invest $100 million each in the acquisition/distribution of XAUT and the procurement of Bitcoin mining machines  

- Multiple Bitcoin proponents, including Jack Dorsey, called on the Signal app to adopt Bitcoin  

- Base app: To launch creator tokens, currently in the early access phase  

- Bloomberg: Ripple Labs plans to lead a $1 billion fundraise to build an XRP reserve strategy  

# Charles Schwab CEO: Spot Cryptocurrency Trading Services Expected to Launch in H1 2026  

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The views expressed in this article are solely those of the author and do not constitute investment advice for this platform. This platform makes no guarantees regarding the accuracy, completeness, originality, or timeliness of the information contained in the article, nor shall it be liable for any losses arising from the use of or reliance on such information.