Bitcoin had a volatile week. It climbed back into the $81,000 range midweek, then fell to the $76,000 range in the second half. Concerns over U.S. monetary policy and whether AI investments will pay off were already weighing on the market when news broke of a massive crypto outflow from Binance. With industry-specific risk piled on top of macro caution, the market spent the week searching for a bottom.
At its October 28 meeting, the Federal Open Market Committee (FOMC) held interest rates steady, but inflation concerns persisted. A sell-off in U.S. equities also weighed on BTC, driven by worries over the heavy cost of AI investment at major tech companies and their upcoming earnings.
Then, on October 30 (Japan time), it emerged that roughly $6.3 billion in crypto assets had flowed out of Binance. The exchange said it would fully cover the losses, but concerns over exchange security sparked broader selling across the crypto market. A wave of forced liquidations in futures followed, and sentiment deteriorated sharply.
