Bitcoin (BTC) and the broader crypto market have faced their most violent correction in years, with over $19 billion in liquidations shaking even veteran traders. In the aftermath, Binance has pledged a massive $400 million relief program, while JPMorgan, corporate Bitcoin treasuries, and Elon Musk continue to steer headlines.
Historic $19 Billion Crypto Market Liquidation
After Bitcoin surged past $126,000, an unexpected macro shock sent markets crashing. Reports indicate that U.S. President Donald Trump’s tariff threat against China — stemming from a misunderstanding of export controls — triggered panic selling across global risk assets.
Within hours, crypto markets witnessed the largest liquidation event ever, surpassing even the FTX collapse of 2022. Price feeds glitched to zero for several tokens, and traders reported catastrophic losses within minutes.
Binance Launches $400M Relief Initiative
To ease the fallout, Binance announced a $400 million relief fund to assist traders impacted by the Oct. 10 crash.
- $300 million will be distributed as token vouchers to users who suffered liquidations on futures and margin trades between Friday 00:00 UTC and Saturday 23:59 UTC.
- An additional $100 million loan pool will provide low-interest capital for affected ecosystem participants.
However, Binance clarified it “does not accept liability for users’ losses.”
The exchange also faced criticism amid reports of technical glitches and a temporary depeg of Ethena’s USDe synthetic stablecoin during the chaos.
JPMorgan Prepares to Enter Crypto Trading
In a surprise development, JPMorgan is reportedly preparing to offer cryptocurrency trading services to clients — marking a sharp evolution from CEO Jamie Dimon’s long-standing skepticism.
According to Scott Lucas, JPMorgan’s Global Head of Markets and Digital Assets, the bank plans to focus on crypto trading but not custody for now.
“We’re going to be involved in the trading of that, but custody is not on the table at the moment,” Lucas told CNBC.
JPMorgan has quietly expanded into blockchain innovation for years — from its partnership with Coinbase to launching JPM Coin, a blockchain-based settlement system for institutional clients.
Corporate Bitcoin Adoption Hits Record High
Institutional faith in Bitcoin as a treasury asset is surging.
A Bitwise Q3 report found that 172 companies now hold Bitcoin on their balance sheets — a 38% increase in just three months.
These holdings now total $117 billion, representing a 28% quarterly growth.
“This participation helps legitimize crypto as a mainstream asset class,” said BTC Markets analyst Racheel Lucas.
MicroStrategy remains the leader, holding over 640,000 BTC, while MARA Holdings trails with 53,250 BTC.
Elon Musk Calls Bitcoin ‘Sound Money’
Elon Musk once again weighed in on the crypto debate, praising Bitcoin’s proof-of-work (PoW) consensus as “impossible to fake energy.”
Responding to a Zerohedge post, Musk said Bitcoin’s energy-backed model makes it more resistant to debasement than fiat currencies, which governments can print without limit.
Tesla, Musk’s electric vehicle company, continues to hold 11,509 BTC, ranking as the 11th-largest corporate Bitcoin holder, despite trimming its position in previous cycles.
Crypto markets may have taken a sound beating, but institutional players — from Binance to JPMorgan and Tesla — remain deeply entrenched in the ecosystem.
As volatility spikes, Bitcoin’s “sound money” narrative faces its toughest test yet.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.