Bitcoin News Today: Bitcoin's Slide: Institutional Caution and DeFi Meltdowns Counter Corporate Bets

Bitcoin's price slump below the $100,000 threshold in October 2025 has sparked a wave of market anxiety, with analysts and institutions dissecting the drivers behind the downturn. The cryptocurrency's 7-year streak of positive October performance—nicknamed "Uptober"—ended as traders took profits after a summer rally, and geopolitical and macroeconomic factors compounded the sell-off, according to a Coinpedia report. The drop followed a 24-hour $19 billion liquidation event triggered by President Trump's new China tariff announcement, which sent Bitcoin tumbling from a record high of $126,300 to a low of $104,600, as detailed in a Yahoo Finance report.

The selloff exposed deepening skepticism among institutional players. Hargreaves Lansdown, the UK's largest retail investing platform, issued a stark warning to its 1.5 million clients, calling Bitcoin "much riskier" than stocks and bonds and advising against relying on it for financial goals. The firm highlighted the digital asset's lack of intrinsic value and volatility, despite acknowledging its historical gains. Meanwhile, Bitcoin treasury firms, including Michael Saylor's Strategy, faced a $20 billion valuation haircut as the price decline eroded market capitalization, according to a Yahoo Finance article. Strategy, however, doubled down, raising liquidity to fund further BTC purchases and maintaining a 10.5% monthly dividend on its STRC stock.

The market's fragility was further underscored by the collapse of confidence in DeFi protocols. Balancer, a major decentralized finance platform, suffered a $128 million exploit on November 3, 2025, as attackers drained liquidity pools across multiple blockchains, according to a CoinCodex article. The breach, attributed to a vulnerability in access controls and oracle dependencies, triggered a 5% drop in Balancer's native token, BAL, and sent ripples through the broader DeFi ecosystem. Just days later, Moonwell, another DeFi lending protocol, lost $1.01 million in a Chainlink oracle malfunction that allowed an attacker to exploit mispriced collateral, as reported in a Coinotag article. These incidents reinforced concerns about the sector's readiness for mainstream adoption.

Despite the volatility, institutional accumulation of Bitcoin continued. Prenetics, a health sciences company, expanded its Bitcoin treasury by purchasing 100 BTC at an average price of $109,594, boosting its holdings to 378 BTC worth $41 million, per an Investorempires report. The firm's CEO, Danny Young, emphasized a dual strategy of scaling its IM8 health brand and building long-term value through Bitcoin, with ambitions to reach $1 billion in annual revenue alongside $1 billion in BTC holdings. Similarly, Steak 'n Shake launched a Bitcoin treasury initiative, offering customers $5 in BTC per "Bitcoin Meal" via the Fold app, as noted in a CryptoNews article. The move, which sparked backlash when the chain briefly considered accepting Ethereum, underscores growing corporate interest in embedding crypto into everyday commerce.

Market fundamentals, however, remain mixed. Bitcoin ETFs recorded $471 million in net outflows on October 29, signaling investor fatigue, according to a Yahoo Finance note. On-chain data revealed a rising Binance Whale Ratio, indicating increased activity among large holders moving BTC to exchanges, potentially signaling further selling pressure. Analyst Jason Pizzino noted a widening gap between Bitcoin's actual performance and historical bull cycle models, raising questions about the reliability of past analogies.

The broader crypto market mirrored Bitcoin's struggles, with Ethereum, Solana, and BNB all posting double-digit declines in October, as reported in an FXStreet report. Over $1.2 billion in liquidations were recorded in a single 24-hour period, with the largest single trade—$33.9 million—targeting Bitcoin and Ethereum positions.

As the market grapples with uncertainty, the interplay between macroeconomic forces, institutional caution, and DeFi vulnerabilities will likely define the near-term trajectory of crypto. While bulls point to continued treasury purchases and historical resilience, the recent spate of exploits and regulatory scrutiny highlights the sector's ongoing maturation challenges.

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