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Morning Minute: Bitcoin Falls Again as JPMorgan Blames Crypto Natives for Selloff

by admin
written by admin

Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to the Morning Minute on Substack.

GM!

Today’s top news:

  • Crypto majors very red as Bitcoin hits 4-month low at $105,700
  • ETFs see biggest outflows since August with $530.9M
  • Charles Schwab plans to launch crypto custody in H1 2026
  • MegaETH partners with Chainlink for real-time data stream oracles
  • Meteora introduced its tokenomics and airdrop checker, trades at $1.08B premarket

📉 Crypto Selloff – “The Natives Did It”

It’s been a long-standing joke: “Are the sellers in the room with us?”

Well, it turns out: Yes, indeed they are.

📌 What Happened?

According to JPMorgan, the sharp crypto correction last week in crypto and carrying through this week was largely self-inflicted.

In a note to clients, the bank said the sell pressure came from crypto-native investors, not institutions.

The data backs that up: While open interest on Binance and other offshore venues cratered, CME’s institutional contracts barely moved.

It’s very much a tale of two markets.

Regarding on-chain crypto, the more than $19 billion in liquidations that slammed the crypto market on Friday have tremendously impacted sentiment and prices, neither of which have yet to recover.

Glassnode shows nearly $12 billion in futures open interest evaporated overnight, the biggest single-day decline in dollar terms ever.

Yet, institutional flow looks calm.

The ETFs have seen steady inflows through the turbulence. Across the past two weeks:

  • BTC ETF inflows: $2.4B
  • ETH ETF inflows: $460M

CME’s Bitcoin open interest held steady, ETF outflows were minor, and Coinbase volumes even ticked up, suggesting that institutional money (smart money) mostly watched from the sidelines.

This was the crypto casino cleaning itself out, not TradFi calling it quits.

🧠 Why It Matters

The institutions have mostly still been buying through the pain —so who has been selling?

Answer: ancient whales and 4-year cycle believers.

There’s plenty of data showing the amount of Bitcoin sold this year from those ancient whales, many of whom were up billions. They said they were going to dump their coins on Wall St., and then they did.

And then one of the biggest anecdotal takeaways from the Asia crypto conference tour last month was that many Asian whales still believe in the 4-year cycle, and fully planned on selling this year aligned with prior cycles.

While this has put us in a painful spot, there are reasons to be optimistic.

  • The ancient whales will run out of Bitcoin at some point.
  • The four-year seasonality won’t last much longer.
  • And the institutions don’t care about any of this, just showing up to buy week after week.

Couple those reasons along with the recent on-chain leverage flushout and you have a nice foundation to set up a healthier base for the next leg upwards—not to mention the prospective gold-to-Bitcoin rally that typically takes place when gold leads (and boy, is it leading right now).

So stay the course, bulls—this too shall pass. And we have a good shot at seeing new ATHs still here in 2025…

🌎 Macro Crypto and Memes

A few Crypto and Web3 headlines that caught my eye:

  • Crypto majors are very red with Bitcoin making a new 4-month low; BTC nearly -5% at $105,200, ETH -6% at $3,765, BNB -10% at $1,060, SOL -8% at $179
  • No notable top movers
  • The U.S. 10-year closed at its lowest level in over a year yesterday at 3.98%
  • Gold hit another new ATH yesterday near $4,400
  • Charles Schwab is on track to add spot crypto trading in first half of 2026
  • Eric Trump said that the Trump family has made more than $1 billion from its crypto ventures
  • New developer data from the Ethereum Foundation shows new devs in 2025 are building on EVM, Solana, Bitcoin, Polygon, and Sui the most
  • Coinbase announced plans to launch Coinbase Business as an all-in-one business payments platform, bundling stablecoin payouts, yield, tax tools for SMEs
  • BlackRock shared plans to adapt one of its money market funds to more specifically serve stablecoins
  • Visa said stablecoins have potential to revolutionize the $40T global credit market
  • MoonPay introduced ‘MoonPay Commerce’ as a way for merchants to integrate seamless crypto checkout and deposit products

In Corporate Treasuries / ETFs

In Memes

  • Memecoin leaders are very red; DOGE -8%, Shiba -7%, PEPE -9%, PENGU -10%, BONK -10%, TRUMP -5%, SPX -14%, and FARTCOIN -11%

💰 Token, Airdrop & Protocol Tracker

Here’s a rundown of major token, protocol and airdrop news from the day:

🚚 What is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

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Bitcoin Slips Below $105,000 as US Banks Come Under Pressure
Web3 Development

Bitcoin Slips Below $105,000 as US Banks Come Under Pressure

by admin
written by admin

Key takeaways:

  • US regional bank stress hit markets as auto sector bankruptcies exposed risky loans, sending financial stock prices sinking.

  • Bitcoin fell below the 200-day SMA, dropping to $104,500 amid $1.2 billion crypto liquidations.

  • Analysts viewed $88,000 as the next significant support level for BTC, unless $104,000 holds. 

Bitcoin (BTC) dropped to $104,000 in a second black Friday event as signs of credit stress among US regional banks triggered a fresh wave of risk aversion across the crypto market.

BTC/USDT one-hour chart. Source: Cointelegraph/TradingView

Bitcoin extends losses as equities slide

Bitcoin price began dropping during the New York trading hours on Thursday as investors turned defensive, with equities slipping, bonds gaining and gold reaching a fresh all-time high.

This came after concerns emerged over looming financial turmoil in the US, with regional banks under pressure due to exposure to two bankruptcies in the auto sector. 

Related: Investors are getting better at spotting bad Bitcoin treasuries: David Bailey

First Brands Group, an Ohio-based auto parts supplier with $10 billion in liabilities, and Tricolor Holdings, a subprime auto lender with $1 billion in debt, filed for bankruptcy in late September. 

These failures exposed risky lending practices, particularly in private credit markets, sparking fears of contagion. 

Zions’ stock sank 13% after disclosing it would take a $50 million loss in the third quarter on two loans from its California division. Western Alliance’s stock slumped 11% after it initiated a lawsuit alleging fraud by Cantor Group V, LLC.

As a result, the S&P 500 dropped by 0.63% to close the day at 6,629.07 on Thursday, while the Nasdaq composite index declined by 107 points (-0.47%). The Dow Jones index lost 0.65% to close the trading day on Thursday at 45,952.24.

24-hour performance of US equities — financial sector. Source: Financial Visualizations

This panic rippled into the crypto market, pushing Bitcoin to an intraday low of $104,500, with the total crypto market capitalization dropping by 5% to $3.58 trillion, according to data from Cointelegraph Markets Pro and TradingView. 

Bitcoin wipes out liquidity in tumble below $105,000

Bitcoin’s sell-off on Friday extended the deviation from its Oct. 6 all-time high of $126,000 to 16.5% and was accompanied by massive liquidations across the derivatives market.

Related: Bitcoin OG whales to blame for BTC’s painful rise: Willy Woo

More than $935.2 million in long positions were liquidated, with Bitcoin accounting for $317.8 million of that total. Ether (ETH) followed with $196.3 million in long liquidations.

Across the board, a total of $1.19 billion was wiped out of the market in short and long positions, as shown in the figure below.

Crypto liquidations (screenshot). Source: CoinGlass

“Another day with a lot of liquidations across the board. It’s not even just longs while the market has been going down,” said trader Daan Crypto Trades on Friday, adding:

“This is exactly what happens after most big flushes. Traders chop themselves up while trying to make back what’s lost.”

Additional data from CoinGlass showed Bitcoin price eating away liquidity around $105,000, with more orders still sitting at $103,500 as shown in the chart below.

BTC/USDT liquidation heatmap. Source: CoinGlass

This suggests that Bitcoin’s price might drop further to sweep the liquidity within this range before staging a sustained recovery.

How low can Bitcoin price go?

Bitcoin’s drop below $105,000 on Friday saw it lose key support areas, including the 200-day SMA at $107,520.  

This has left traders speculating how low the BTC price will go before it finds its footing. 

“No reversal in sight at the moment for $BTC,” said analyst Block_Diversity in an X post. 

An accompanying chart highlighted key levels to watch on the daily chart, including last Friday’s low on Binance around $101,000, and the demand zones around $95,000 and $88,000.

“These are open targets, unless $BTCstarts getting support at $107.4K.”

BTC/USD daily chart. Source: Block_Diversity v.8

“$104K is the HTF level that matters most right here,” said fellow analyst Sykodelic, adding that they expect this area to hold since the daily RSI is now at the lowest level since the $74,000 bottom.

“The weekly close this week will be very important.”

BTC/USD daily chart. Source: Sykodelic

As Cointelegraph reported, with the crypto Fear & Greed Index at yearly lows and at “extreme fear,” it suggests that BTC price might rebound in the short term from current levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.