After a week-long rout that erased hundreds of billions in digital-asset value, Bitcoin has again failed to live up to its billing as a safe harbor asset. Once cast as a hedge against market turmoil — a “digital gold” for the blockchain age — the original cryptocurrency continued its slide on Friday, dropping as much as 4% to $103,550, the lowest level since June. Ether, the second-largest token, slipped under $3,700 and has now retreated around 25% from its August peak. The total value of the crypto market has shrunk by over $600 billion since last Friday, data compiled by CoinGecko shows.

Meanwhile, the Binance-linked token BNB tumbled as much as 11% on Friday, before parings its slide. The world’s largest crypto exchange was cited by analysts as a key driver of the record spree of liquidations on Oct. 10 and 11 as users encountered technical glitches and price discrepancies. Binance has offered customers and businesses nearly $600 million in compensation following the crash. The fall in BNB on Friday “seems in line with the larger market selloff for now,” said Yoann Turpin, co-founder of crypto market maker Wintermute. The activity is also likely a sign of repricing, Turpin said, after a surge mid-week failed to form a lasting recovery. Bitcoin set an all-time high of $126,251 on Oct. 6. Days later, more than $19 billion in liquidations sparked by escalating US-China trade tensions coincided with a sharp selloff that encompassed most major tokens. About $1.2 billion in leveraged positions are liquidated over the past 24 hours, according to Coinglass data, far below last week’s total, but underscoring that leverage remains elevated in a fragile market. Heavyweights including Kraken, Circle, BitGo and Ripple are pushing deeper into regulated finance — seeking trust charters, payment rails and card products. “What’s striking is the timing of the crash coinciding with major players pursuing banking licenses,” said Rachael Lucas, analyst at BTC Markets. The pivot to traditional financial infrastructure “signals a strategic hedge against volatility, aiming to build legitimacy,” she added.

 

Risks stemming from the US and China sparring over trade continue to plague risk assets beyond crypto. The collapses of First Brands Group and Tricolor Holdings have revived anxiety over hidden credit losses, while fraud-linked write-downs at Zions Bancorp and Western Alliance wiped more than $100 billion from US bank market value in a single day.Investors withdrew a net $593 million from US-listed Bitcoin and Ether exchange-traded funds on Thursday as risk-off sentiment swept through markets. The put-to-call ratio for Bitcoin on the crypto derivatives platform Deribit rose to 1.33 over the past 24 hours, signaling increased hedging against further price declines. Put options provide downside protection by giving holders the right to sell an asset at a predetermined price. “Derivatives are where stress is concentrated,” Timothy Misir, head of research at digital asset analytics firm BRN said in a note. “Dealers are buying protection; that raises the cost of short-term downside insurance and increases the chance of violent two-way moves.” With longstanding havens such as gold and silver continuing to hit fresh highs, Bitcoin has disappointed. It fell as much as 6.3% in the week to Oct. 12, the most since early March and hasn’t yet bounced back. The same is true of most cryptocurrencies. “More than anything, I think crypto is acting like a canary in the coal mine suggesting the market is on edge because of emerging credit worries,” said Matthew Hougan, chief investment officer at Bitwise.

NN: You have to be a idiot to put your retirement savings in bitcoin. We are shorting bitcoin. We have been shorting. And we were their for the crash. And we  will be shorting the next crash.

United States President Donald Trump stated on Friday that Chinese products may be subject to new extreme tariffs and that he is weighing the options with his team. “I never thought it would come to this but perhaps, as with all things, the time has come. Ultimately, though potentially painful, it will be a very good thing, in the end, for the U.S.A. One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America,” the American leader wrote on his Truth Social account. Trump also claimed that “for every Element that they [China] have been able to monopolize,” Washington has two, while also announcing that “many other countermeasures” are “under serious consideration.” In the same post, the president also declared that there is no reason to speak to his Chinese counterpart, Xi Jinping.

NN: Trump’s post struck fear and terror into the stock market, bitcoin and oil. It rallied precious metals. This is Trump doing art of the deal negotiations, In the end the US and China will come to terms. 

The Gaza ceasefire between Israel and Hamas formally came into force, Egypt’s Al Qahera News reported on Thursday. Egyptian President Abdel Fattah al-Sisi confirmed it minutes later by saying that “an agreement has been reached to implement a ceasefire and end the war in Gaza.” The ceasefire was formally signed in Sharm el-Sheikh and went into effect at 12:00 pm Cairo time. In order to facilitate the movement of civilians and the delivery of aid, five humanitarian crossings into Gaza will open. The deal’s first prisoner swap is tentatively set for Saturday or Sunday, the media added. The first phase of US President Donald Trump’s ceasefire agreement, which Israel and Hamas had previously agreed to, calls for the release of 20 live hostages in exchange for 2,000 Palestinian detainees during the first 72 hours of the truce.

NN: This is not how this will end up

Israeli Defense Minister Israel Katz announced on Wednesday that the military is completing the takeover of the Netzarim Corridor, a strategic route that effectively splits Gaza into two. “This will tighten the encirclement around Gaza City,” Katz said, adding that movement southward will now require passing through IDF inspection checkpoints. He urged civilians to leave, calling it “the last chance” for residents to evacuate. “Those who remain in Gaza will be terrorists and terror supporters,” the minister warned. The corridor’s capture is expected to isolate Hamas fighters in the north as Israeli operations continue despite awaiting the group’s response to the peace plan.