Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | October 12 - October 18, 2025

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Crypto Weekly Recap

Total crypto market cap: $3.59T

Crypto Fear & Greed Index: 23 (Extreme Fear)

BTC.D: 59.48%

Bitcoin:

• Weekly performance: -5.24%
• US Spot BTC ETFs: -$1.23B
• Bitcoin saw a weekly high at ~$116.1K on Oct 13; low at ~$104K on Oct 17 as risk-off hit. 
• Macro context: the US government shutdown delayed critical data and the ongoing U.S. x China trade war fears; this increased uncertainty and likely weighed on BTC. 
• On Oct 16, concerns hit the credit markets: Zions Bancorp and Western Alliance disclosed bad/ fraudulent loans; Jefferies shares plunged ~9-10% on the same day due to exposure via its Point Bonita fund (~$715M to First Brands Group) - raising “shadow banking / private credit” red-flags.
• On Oct 17, Alberto Musalem of the Fed flagged support for a rate cut (if inflation remains contained) - dovish, yet the data void kept markets jittery. 
• The stock market was affected: the SPX slipped ~-0.7% on Oct 16, regional banks led losses; meanwhile, safe-haven assets soared, with gold breaking past ~$4,300/oz and creating a frenzy globally when people rushed to buy it at ATH.
• Sentiment shift: early week momentum (“buy the dip”) morphed into caution by week’s end. 
• Near-term key levels: resistance remains ~$113K-116K (rejection zone). Support around ~$108K; if broken, the ~$102K-104K zone is in play.

Ethereum:

• Weekly performance: +0.06%
• US Spot ETH ETFs: -$311.80M
• ETH is trading near $3,890 after trading a volatile $4,290-$3,670 range; early rebound faded as ETF outflows and macro stress took over.
• ETH/BTC ratio dropped to 0.03528 on Oct 17, now stabilizing around 0.03616, showing traders prioritized Bitcoin amid stress; altcoin risk appetite stayed muted.
• Perp markets cooled after record liquidations; open interest reset lower and funding neutralized, limiting speculative upside.
• Regional-bank fears spooked equities and spilled into crypto on Oct 16-17, dragging ETH ~-5% intraday in sync with S&P futures.
• Stablecoin market cap hit $314B, providing dry powder but not yet risk-on rotation; stable flows into USDT and PYUSD suggest safety positioning.
• Key support: $3,650-$3,700 zone (held twice this week). Resistance: $4,200-$4,300, where ETF outflow spikes originated.

Others:

• Major institutions increased post-crash crypto accumulation as markets rebounded.
• The U.S. DOJ moved to seize $15 billion in Bitcoin linked to a global fraud network.
• JPMorgan planned to expand crypto trading but kept custody services off the table.
• Coinbase backed India’s CoinDCX at a $2.45 billion valuation, expanding across India and the Middle East.
• Bhutan builds its national digital ID on Ethereum, covering 800,000 citizens.
• BlackRock, NVIDIA, and Microsoft led a $40 billion takeover of Aligned Data Centers to boost AI infrastructure.
• Ripple’s $1 billion deal, Coinbase’s USDC expansion, and YZi Labs’ $50 million push reshaped global payments.
• BlackRock launched the BSTBL fund targeting stablecoin issuers under the U.S. GENIUS Act framework.
• CME Group launched CFTC-regulated Solana and XRP options.
• China Renaissance reportedly sought a $600 million BNB treasury, with YZi joining the plan.
• WazirX restructuring was approved, offering relief to victims of the $230 million hack.
• Bittensor surged after Grayscale considered launching an ETP.
• Monad opened MON airdrop claims to the community.
• OKX extended its custody deal with Standard Chartered into Europe, enabling off-exchange trading.
• a16z Crypto invested $50 million in Solana’s Jito protocol.
• Uniswap added Solana support to its web app.
• Binance was among exchanges targeted in France’s AML investigation; completed Gopax acquisition for South Korea comeback.
• The SEC approved 21Shares’ Solana Spot ETF.

Binance Denies $2M Listing Fee Allegations Amid $20B Crypto Meltdown

Binance denied claims of demanding multimillion-dollar fees and tokens for listings after Limitless Labs exposed alleged terms including a $2M BNB deposit and 7% token allocation. CZ called the allegations false and reaffirmed zero listing profit policy. Simultaneously, $20B was liquidated in a 24-hour crash, triggering outages and UI errors at Binance, which later offered $283M in user compensation. Critics accused Binance of underreporting liquidation events 100x. Despite turmoil, BNB surged 16% to an all-time high of $1,370, with a 70% volume spike and 34% futures OI jump, overtaking XRP in market cap.

BitMine Expands Ethereum Holdings to $11.48B Amid Warning of $162B DAT Sector Collapse

BitMine has significantly expanded its Ethereum holdings by acquiring an additional 104,336 ETH, bringing its total to approximately 3.03 million ETH, valued at $11.48 billion. Concurrently, SharpLink raised $76.5 million to enhance its ETH treasury to about 840,124 ETH. However, Tom Lee warns of a potential collapse in the $162 billion digital asset treasury (DAT) sector, noting many companies now trade below their crypto reserves. Metaplanet exemplifies this strain, as its market cap fell below its Bitcoin reserves. While retail traders remain bullish on Ethereum, technical indicators suggest increasing volatility and a bearish outlook for the market.

Trump Family's Crypto Ventures Surpass $1 Billion in Profits Amid Regulatory Scrutiny

The Trump family's cryptocurrency ventures have reportedly generated over $1 billion in profits, with key assets including the WLFI token, USD1 stablecoin, and the TRUMP and MELANIA meme coins. World Liberty Financial raised $550 million from token sales, while the family holds a significant stake in American Bitcoin, valued at over $1.5 billion. Despite regulatory scrutiny regarding potential conflicts of interest with pro-crypto policies, the family's crypto portfolio continues to thrive. Critics accuse the administration of favoritism, especially following relaxed SEC enforcement. Key profits include $427 million from meme coin trading and substantial earnings from mining investments.

Erebor Bank Secures Conditional Charter, Paving the Way for Regulated Crypto Banking in the U.S.

Erebor Bank received conditional preliminary charter approval from the OCC, marking the first new national bank charter under Comptroller Jonathan Gould and symbolizing a shift toward regulated crypto banking. Backed by Peter Thiel and Palmer Luckey, the bank aims to integrate traditional banking with digital asset services and has raised about $250 million, boasting a valuation over $2 billion. It will focus on lending against cryptocurrencies and enabling stablecoin transactions. The approval, however, faces political scrutiny, with critics warning of potential risks, while supporters see it as a milestone toward embracing digital finance within federal oversight.

Li Lin and Ripple Labs Launch $2 Billion Combined Digital Asset Treasuries for ETH and XRP

On October 17, 2025, Huobi founder Li Lin announced a $1 billion Ether treasury initiative aimed at institutional accumulation of ETH, backed by notable crypto pioneers like Shen Bo and Xiao Feng. Meanwhile, Ripple Labs plans a $1 billion XRP Digital Asset Treasury via a SPAC, contributing part of its 4.5 billion XRP holdings. With ETH trading around $3,874 and XRP at $2.30, the Ether initiative aims for long-term stability, while Ripple’s approach could increase XRP liquidity by 20%. Together, these initiatives symbolize a $2 billion commitment, showcasing growing institutional interest amid market volatility.

Paxos Errors Cause $300 Trillion PYUSD Minting Blitz

On October 15, 2025, Paxos mistakenly minted and instantly burned $300 trillion worth of PayPal USD (PYUSD) on Ethereum due to a technical error, costing only $2.66 in gas fees. This unprecedented event, dwarfing the world’s GDP and U.S. currency in circulation, prompted Aave to freeze its PYUSD markets, limiting activity to withdrawals and repayments. The incident sparked discussions on stablecoin risk controls and regulatory oversight. Although no economic damage occurred due to the quick reversal, the episode highlighted the vulnerabilities in digital finance linked to centralized issuers and the potential systemic risks they pose to the DeFi ecosystem.

Citi to Launch Crypto Custody Service by 2026, Taps into Stablecoin Potential Amid Regulatory Shift

Citi plans to launch a crypto custody service by 2026, marking a significant entry into digital assets. This initiative, led by Biswarup Chatterjee, follows two to three years of development, aiming to support institutional clients with secure storage for cryptocurrencies like Bitcoin and Ether. The U.S. regulatory environment, especially the GENIUS Act, has encouraged banks to explore digital custody options. Citi's approach will mix in-house and third-party solutions. Additionally, the bank is investigating stablecoins for payments, supported by its recent investment in BVNK. Overall, this strategy reflects a shift towards infrastructure integration rather than speculative trading in digital assets.

Bhutan Launches World’s First National Digital ID System on Ethereum for 800,000 Citizens

Bhutan has officially migrated its National Digital Identity (NDI) system to Ethereum, becoming the first country to implement a nationwide identity framework on a public blockchain for 800,000 citizens. This transition, confirmed on October 14, 2025, showcases Bhutan’s commitment to self-sovereign identity, allowing residents to control and verify personal data through encrypted digital wallets. The integration phase enables identity verification and access to public services. Bhutan's holdings include over 11,000 BTC and approximately 656 ETH, reflecting its significant engagement with digital assets. The full credential transfer is expected to be completed by Q1 2026.

Japan's Mega Banks to Launch Yen-Pegged Stablecoin on MUFG's Progmat Platform by March 2026

Japan's leading banks, MUFG, SMFG, and Mizuho, are set to launch a yen-pegged stablecoin via MUFG’s Progmat platform by March 2026, aiming to streamline corporate and cross-border settlements for over 300,000 clients. Mitsubishi Corporation will be a key early adopter. The initiative responds to inefficiencies in the $182 trillion cross-border payments market, positioning Japan in competition with China’s digital yuan and other regional initiatives. The stablecoin will enhance operational efficiency and liquidity management, ensuring compliance with Japanese regulations while integrating with existing systems like SWIFT. A future U.S. dollar version is also being considered.

OpenSea Reinvents with Token Aggregation, $16M Fee Surge, and SEA Token Launch in Q1 2026

OpenSea is pivoting from a pure NFT marketplace to a multi-chain crypto asset aggregator, integrating tokens like memecoins and operating across 22 chains. It now earns 0.9% per transaction and generated over $16M in fees in two weeks. Airdrops like Treasure Chests reward users with NFTs and tokens. CEO Devin Finzer confirmed a Q1 2026 launch of the SEA token, with 50% allocated to the community. SEA will enable staking and governance, aligning with OpenSea’s broader DeFi strategy, echoing trends from Blur and LooksRare.