Happy Monday all!

We’re back with the top crypto stories of the week 💡

‘Wake-up call’: After $500 billion crypto crash, analysts warn of leverage risks 💀

• President Trump’s tariff threats against China triggered a 10% crypto market drop over the weekend, wiping out over $500 billion in value.

• Crypto liquidations hit $~20 billion in a historic event, with many estimates suggesting actual figures could be four times higher, driven by auto-deleveraging on exchanges.

• The sell-off exposed the dangers of high leverage, thin liquidity, and the influence of large institutional players, raising concerns about systemic risks.

• Bitcoin has recovered to around $114,400, and Ethereum to about $4,100, with some altcoins regaining losses; market sentiment remains cautious.

• The Fear & Greed Index hit its lowest since April, indicating extreme fear but also potential buying opportunities; analysts see the market reset as a temporary risk reduction.

• Ongoing geopolitical tensions and upcoming Fed rate cuts (scheduled for October 28-29) are expected to keep short-term volatility high, though long-term fundamentals remain cautiously optimistic.

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Tom Lee's BitMine Adds $838 Million More in Ethereum Amid Market Chaos 🦾

• BitMine Immersion Technologies added over 200,000 ETH during recent market dip, now holding more than 3 million ETH valued at over $12.5 billion.

• The firm also holds around $220 million in Bitcoin and $239 million in other assets, aiming to reach 5% of ETH supply.

• The recent purchase increases BitMine’s ETH holdings to 2.5% of total supply, at an average price of $4,154, close to current ETH prices.

• ETH dropped to $3,686 last Friday amid $19 billion in liquidations but has since rebounded over 9% in 24 hours as trade tensions eased.

• Shares of BitMine (BMNR) rose 4.5% on Monday, trading at $54.75, after falling below $60 last week.

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Binance pays $283M in compensation following Friday’s depegs, covering user losses 🩹

• Binance paid approximately $283 million in compensation to users affected by Friday’s depegging of three assets—USDe, BNSOL, and WBETH—covering futures, margin, and loan users impacted between 21:36–22:16 UTC.

• The depegging occurred after the broader market crash, with prices falling sharply before the assets lost their peg, and Binance dismissed rumors of an attack causing the depeg.

• Binance plans to enhance market stability by adding redemption prices to index weights and implementing a soft price floor for USDe to prevent future depegs.

• The incident was partly attributed to long-standing limit orders from 2019, which sold off during the sell-off, causing temporary sharp drops in tokens like ATOM and IOTX.

• Binance’s native token BNB rose 11.8% in the past 24 hours amid a broader crypto rebound, with the GM30 Index up 6.8%.

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Galaxy Gets $460M Investment by 'Large Asset Manager' for Its HPC Push 💸

• Galaxy Digital secures a $460 million investment from a large asset manager to boost its high-performance computing (HPC) capabilities.

• The funding aims to enhance Galaxy’s infrastructure for crypto trading, asset management, and blockchain research.

• This investment underscores growing institutional interest in advanced crypto technology and infrastructure.

• The deal is part of Galaxy’s broader strategy to expand its technological edge in the crypto space.

• The timing suggests a continued push for innovation in crypto infrastructure through late 2025.

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Strategy Spent Another $27 Million on Bitcoin Before It Crashed 🎢

• Strategy raised $27 million by issuing preferred shares and bought 220 Bitcoin at an average of $123,500 last week, before the recent price crash.

• The firm now holds 640,250 Bitcoin, valued at around $73 billion, with an average purchase cost above $74,000.

• Bitcoin’s price hovered around $115,000 on October 13, down 8% over the past week, with altcoins suffering larger losses.

• Strategy’s latest Bitcoin purchase was funded through sales of $1.7M STRK, $17.1M STRF, and $6.9M STRD preferred shares, some of which pay dividends.

• The company’s stock declined 15% over five days to $304.78, and its Bitcoin premium dropped from 86% to 39%.

• In Q3, Strategy’s stock underperformed Bitcoin, falling 20.3%, while other Bitcoin treasury firms like Empery Digital outperformed Bitcoin’s 6.2% rise.

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