gm 14/10

Summary
gm, Binance has announced compensation of $283 million for users affected by technical issues that exacerbated the crash, particularly related to wrapped assets like wBETH and BNSOL, while Ethena founder Guy Young clarified that USDe's apparent depeg was due to a Binance oracle issue rather than fundamental problems with the token. Despite the turmoil, institutional interest remains strong with BitMine acquiring 200,000 ETH ($827 million) during the dip and MARA Holdings purchasing 400 BTC worth $46 million, while crypto investment products attracted $3.2 billion in inflows last week despite the crash, suggesting continued confidence in the market's long-term prospects.

News Headlines
🏦 Citi Plans to Launch Crypto Custody Services in 2026

• Citi is developing crypto custody services slated for launch in 2026, following two to three years of development to hold digital assets for clients like asset managers.
• This move is part of a broader trend among major banks exploring digital asset services following the SEC's approval of Bitcoin and ETH ETFs, with Citi also participating in a banking consortium investigating stablecoin development.

🌊 ETH Ready to Reclaim $4.5K as Futures Markets Stabilize

• Ethereum is showing strong recovery potential toward $4,500 as perpetual futures contracts stabilize with funding rates turning negative, indicating an unsustainable environment for short sellers.
• ETH demonstrated relative strength during the crash compared to other altcoins, supported by substantial spot ETF assets and balanced options market activity, with put options slightly lower than call options pointing to a healthy trading environment.

🛑 3 Reasons Why a Bitcoin Rally to $125K Could Be Delayed

• Ongoing concerns about the US job market and potential economic slowdown, coupled with looming US-China trade tensions, have made investors increasingly risk-averse in the short term.
• Negative funding rates in Bitcoin derivatives markets indicate heightened caution among traders, while the unresolved US government shutdown adds macroeconomic uncertainty, potentially delaying Bitcoin's rise to new all-time highs.

🔐 Security Alliance Develops Cryptographic Tool to Verify Phishing Attacks

• The Security Alliance has introduced 'TLS Attestations and Verifiable Phishing Reports' to enhance verification of crypto phishing attacks amid rising scams that stole over $400 million in the first half of 2025.
• The system acts as a cryptographic oracle during TLS connections, allowing users to run a local HTTP proxy to intercept and analyze connections to suspect websites without directly accessing them.

🔄 Trader Who Made $192M Shorting the Crypto Crash Opens New $163M Short

• A trader who profited $192 million during the recent market crash has opened a new $163 million leveraged short position on Bitcoin, risking liquidation if BTC reaches $125,500.
• Speculation surrounds the trader's possible influence on market dynamics and potential insider information, while another trader took a contrasting bullish position with a leveraged long trade.

Market Metrics

Fundraising & VC
1. CryptoMesh (Series A, $2.5M) - DeFi staking platform
2. Ferra (Pre-seed, $2M) - Decentralized liquidity protocol on Sui

Regulatory
✅ California Governor Signs Law Protecting Unclaimed Crypto Assets

• Governor Gavin Newsom has enacted legislation that protects unclaimed cryptocurrency from forced liquidation, making California the first state to do so.
• The new law includes digital assets under the Unclaimed Property Law, requiring them to be retained in their original form rather than being liquidated into cash, thus avoiding unnecessary taxable events.

⚖️ Reform UK's Nigel Farage Proposes UK Crypto Deregulation Plan

• Reform UK leader Nigel Farage outlined initiatives for deregulating the UK's cryptocurrency sector at DAS London, criticizing both Conservative and Labour parties for neglecting the financial services sector.
• Farage proposed establishing a Bitcoin reserve and slashing crypto capital gains taxes to prevent the exodus of capital and talent to other countries.

🌐 Bhutan Migrates National ID System to Ethereum Blockchain

• The Kingdom of Bhutan has migrated its national identity system to Ethereum, enabling approximately 800,000 citizens to verify their identities and access government services.
• The transition from Polygon to Ethereum is expected to be fully completed by early 2026, with the implementation leveraging zero-knowledge proofs for enhanced privacy and security.

🌍 WazirX Secures Court Approval for Restructuring After $234M Hack

• Singapore's High Court has approved WazirX's restructuring plan, allowing the Indian crypto exchange to resume operations and begin compensating over 150,000 users affected by last year's $234 million hack.
• The plan received overwhelming support, with 95.7% of creditors backing it by number and 94.6% by value, and WazirX aims to relaunch by the end of October.

🔍 Norwegian Officials Investigate Polymarket Bets on Nobel Peace Prize

• Norwegian officials have launched an investigation into betting activity on prediction platform Polymarket related to the 2025 Nobel Peace Prize winner, María Corina Machado.
• The inquiry was prompted by reports that bets surged shortly before the announcement, with one user reportedly earning over $30,000 from $70,000 in bets and three accounts collectively profiting by approximately $90,000.

Technical Analysis
Bitcoin - Bitcoin is within an approximate horizontal trend channel in the short term. This indicates that investors are uncertain and waiting for signals of further direction. A break upwards will be a positive signal, while a break downwards will be a negative signal. The currency is testing support at points 113400. This could give a positive reaction, but a downward breakthrough of points 113400 means a negative signal. The currency is assessed as technically neutral for the short term.

Ethereum - Ethereum is within an approximate horizontal trend channel in the short term, which indicates further development in the same direction. The currency is between support at points 4000 and resistance at points 4300. A definitive break through of one of these levels predicts the new direction. The currency is assessed as technically slightly negative for the short term.