TL;DR

Bitcoin drops to $108K on whale sale; ETH institutional inflows surge; $1.4B exits crypto funds.

Highlights

• • Bitcoin dropped to $108K after a 24,000 BTC whale sale, triggering $550M in liquidations; support at $107K–$108.9K is being tested 1.
• • Ethereum saw renewed institutional inflows, with ETFs and treasuries now holding over $50B (9% of supply); derivatives open interest is near all-time highs 5.
• • A major Bitcoin OG rotated ~$3B from BTC into 641,508 ETH , staking most of the new ETH 11.
• • Crypto funds experienced $1.4B in weekly outflows, led by redemptions from Bitcoin, Ether, and DeFi products 4.
• • Dormant 2012-era BTC whale sent $83M to Binance, raising concerns about potential sell pressure 2.
• • Standard Chartered raised its year-end ETH target to $7,500, citing accelerating institutional accumulation; SharpLink added $252M in ETH to its $3.7B treasury 1317.
• • Circle and Tether minted a combined $1.25B in stablecoins, with new tokens still in issuer wallets 3.
• • Aave Labs launched Horizon, enabling institutional stablecoin loans backed by tokenized Treasuries and credit pools 16.
• • Hyperliquid will allocate 99% of trading fees to HYPE token buybacks; XPL flash pump on Hyperliquid netted Justin Sun $16M and caused liquidations 910.
• • CFTC deployed Nasdaq ’s surveillance platform for crypto oversight but faces a leadership gap after Johnson’s exit; over 100 crypto firms are demanding developer protections in pending Senate legislation 7814.
• • Google Cloud introduced its GCUL Layer 1 blockchain for cross-border finance; Bitwise and REX/Osprey filed for Chainlink and BNB staking ETFs, respectively 61519.
• • Camp Network ’s CAMP token to list on KuCoin, Kraken, and others, expanding Layer 1 and content-tokenization offerings 18.

Commentary

Bitcoin ’s decline to $108K, triggered by a large whale sale and $550M in liquidations, has put key support levels in focus 1. The move highlights ongoing market fragility, especially amid high leverage and a hawkish Fed backdrop 1. On-chain data shows additional sell-side risk from dormant whales moving coins to exchanges 2, while long-term holders have realized $260B in profits this cycle, signaling late-cycle behavior and potential for continued supply pressure 20.

Ethereum continues to attract institutional capital, with ETFs and treasuries now controlling over 9% of supply and open interest in derivatives markets at record highs 5. The notable BTC-to-ETH rotation by a major OG whale—totaling ~$3B in value—reflects this shift 11. SharpLink ’s $252M ETH buy and Standard Chartered’s $7,500 year-end target reinforce the narrative of growing institutional preference for ETH, especially as staking yields and treasury adoption differentiate it from BTC 1317.

Outflows from crypto funds and DeFi products reached $1.4B this week, the worst since March, as investors de-risk in response to macro uncertainty and recent volatility 4. Stablecoin issuers Circle and Tether minted $1.25B in new tokens, though these have yet to hit exchanges, suggesting possible dry powder if sentiment shifts 3. In DeFi, Aave ’s Horizon launch and Hyperliquid’s fee realignment point to continued protocol innovation 1610, but the XPL flash pump and ensuing liquidations on Hyperliquid underscore the risks of thin liquidity and inadequate risk controls in decentralized derivatives 9.

Regulatory developments remain a key watchpoint. The CFTC ’s adoption of Nasdaq ’s surveillance platform should improve market monitoring 7, but the agency’s leadership vacuum and resource constraints could limit its effectiveness 8. Meanwhile, industry groups are pressuring the Senate for explicit developer protections in market structure legislation, as legal clarity for DeFi and open-source contributors remains unresolved 14.

Traders should monitor BTC ’s support zone, ETH ’s resilience amid institutional accumulation, and any large on-chain movements from dormant whales 12511. Watch for distribution of newly minted stablecoins, ETF approval timelines, and liquidity/risk management on derivatives platforms 361019. Regulatory clarity and fund flows will remain central to near-term market direction 4714.