Over $1.3 billion in crypto positions liquidated as bitcoin’s drop below $104,000 hits ‘fragile’ market

Bitcoin has fallen below $104,000 to its lowest level in two weeks, triggering at least $1.37 billion in leveraged liquidations — about $1.2 billion of which from long positions, according to CoinGlass data — as persistent ETF outflows, long-term holder selling, and a broader risk-off mood continue to pressure the market.

It's important to note that liquidation data remains imperfect — Bybit publishes full data, but Binance and OKX still report in incomplete bursts, for example — meaning the true figure is likely higher.

BTC slid nearly 4% in 24 hours from $106,400 to an intraday low of $103,860 early Tuesday, The Block's price shows. Altcoins mirrored the move, as ETH dropped 6% to around $3,500, BNB slid 8% to below $950, and SOL fell almost 10% to $159, pushing total crypto market capitalization down to about $3.6 trillion.

"As BTC continues to trade within the top-buyer cluster, the market sits in a fragile state," Bitfinex analysts told The Block. "We are not yet in a capitulation phase, but investors are showing signs of waning conviction. Unless the price recovers decisively above this range, time becomes a growing headwind for bulls."

The analysts added that persistent distribution from long-term holders continues to exert structural pressure, noting that major bull phases have historically resumed only once these wallets shift back into accumulation.

Tuesday's downturn follows another stretch of ETF weakness. On Nov. 3, spot Bitcoin ETFs logged $187 million in net outflows — a fourth consecutive day of redemptions — while Ethereum ETFs shed $136 million, according to The Block's data dashboard. In contrast, Solana ETFs recorded $70 million in inflows, their fifth straight positive session, as analysts flagged a rotation toward higher-beta assets despite broader fatigue.

Fear grips crypto market as risk appetite fades

The Crypto Fear & Greed Index fell to 21, its lowest reading in weeks, signaling deep caution across investor sentiment. Nicolai Sondergaard, research analyst at Nansen, said a mix of macro and psychological factors has kept traders defensive following the Oct. 10 crash.

"There's been a lot of fear in the market since the large liquidation that happened," he said. "Combined with the ongoing government shutdown and the focus from Crypto Twitter that price follows global liquidity, many participants have gone risk-off."

Still, Sondergaard noted bright spots beneath the surface. "The new Solana ETF is coming out quite strong, which goes somewhat against what we're otherwise seeing," he added. "What happens next will largely depend on when the government is back online, with reassuring statements that could quickly improve short-term sentiment."

Fragile structure, exhausted demand

Onchain and derivatives data point to thinning liquidity. Bitcoin options open interest remains muted near multi-week lows, while spot depth has declined across major exchanges, according to The Block's data and several analysts' notes.

Notably, sentiment has also turned bearish in prediction markets. The Polymarket contract asking whether bitcoin will dip below $100,000 before 2026 now shows a 78% probability of "Yes," suggesting traders see a higher chance of a significant correction ahead of next year.

Gabriel Selby, head of research at Kraken-owned CF Benchmarks, said the current move likely reflects technical rebalancing after earlier volatility.

"The liquidation on Oct. 10 left a lot of price inefficiencies that made another correction somewhat inevitable," he said. "With large caps retesting those October lows again today, the market could actually be better positioned for a cleaner run higher moving forward."

Even so, Bitfinex analysts warned that unless ETF inflows or new institutional buyers absorb supply, bitcoin's retest could "potentially extend toward the $100,000 region or lower" in the weeks ahead.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

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Shibarium Top Developer to Bridge Hacker: 'Do Something Right'

U.Today

Shiba Inu developer Kaal Dhairya sent a message to the hacker who stole $2.3 million in crypto assets via the Shibarium Bridge. Dhairya gave the hacker a sarcastic nudge to do something right by accepting a recent cash offer from K9 Finance.

Latest cash offer to Shibarium Bridge hacker

U.Today revealed in an earlier story that the hacker pulled off a flash loan attack on the Shibarium Bridge on Sept. 12.

The attacker artificially boosted their stake to gain influence over validators and submit fraudulent exit requests. They used it to seize 10 out of 12 validator keys for temporary majority control.

As a result, the hacker tricked the bridge into withdrawing roughly $2.3 million worth of assets, including Ethereum , SHIB, ROAR and KNINE.

Shortly after the exploit, K9 Finance, the official liquid staking solution of Shibarium, blacklisted the hacker’s wallet. This means the stolen 248 billion KNINE tokens became 100% unsellable.

K9 also offered its 5 ETH bounty just for the frozen KNINE, sent on-chain to the hacker’s address. The hacker ignored the offer and simply sat on the worthless KNINE pile.

Fast forward to Nov. 3, 2025, and K9 Finance increased its bounty offer to 20 ETH for the stolen KNINE tokens.

Kaal
@kaaldhairya
Yo, Shibarium bridge attacker, wake up—grab free cash before the offer expires this time and do something right. https://t.co/TRC4cSoDZe
Nov 04, 2025

Spotlighting the K9 Finance post, Dhairya urged the Shibarium Bridge hacker to take the 20 ETH and walk away like a white-hat hacker.

If the hacker gives in, K9 recovers its tokens, trust increases and the KNINE price rebounds.

Shibarium safety measures

Following the attack, the Shiba Inu developers have added key improvements to the bridge to bring enhanced security.

The Shiba Inu developers released a new version of the bridge that offers enhanced security and stronger loss prevention.

Specifically, the bridge now has a feature that blocks suspicious addresses. In this way, bad actors will be banned from exploiting the bridge.

In addition to this feature, there is now a seven-day withdrawal delay. This means that all BONE withdrawals will have a buffer before they are finalized. It is meant to ensure that security teams will have enough time to tackle any suspicious activity.

On top of these improvements, Shibarium launched a new official RPC in collaboration with dRPC.org. It also intends to publish a template that would serve as a manual to handle any future malicious attempts.

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Stream Finance Halts Withdrawals After $93 Million Loss DeFi Investors in Shock

Coinpedia

The DeFi world was hit with another shock as Stream Finance, a platform known for its yield and capital efficiency strategies, paused all withdrawals and deposits after suffering a massive $93 million loss. The company said the loss came from an external fund manager responsible for handling a portion of its assets, and operations will remain frozen until the situation becomes clearer.

What Happened

According to Stream Finance, the external fund manager managing part of its funds disclosed a $93 million loss on November 4. The firm did not immediately specify what led to the loss, whether it was due to a hack, mismanagement, or market volatility, but confirmed that it is now retrieving all liquid assets to protect investors.

To ensure a fair and transparent process, Stream has hired Keith Miller and Joseph Cutler from the U.S. law firm Perkins Coie LLP to lead an independent investigation. The goal is to determine exactly how the loss occurred and what portion of the funds can be recovered. Stream stated that it will keep the community updated as the investigation progresses.

Investors Left Waiting

For now, all pending deposits and withdrawals are on hold, meaning users cannot move their funds in or out of the platform. This decision, while frustrating for investors, is aimed at preventing further losses until Stream has a full picture of the situation. The team emphasized that their priority is to secure user assets and maintain transparency during this uncertain period.

Market Reaction and Token Crash

The announcement had an immediate impact on Stream’s native token, Staked Stream USD . According to CoinGecko, the token’s price plunged from $0.90 to $0.30, marking a staggering 68% drop in just 24 hours. At press time, XUSD had slightly recovered, trading above $0.40, but the damage was done.

The sharp decline reflects investors’ shaken confidence in Stream Finance and the broader DeFi market’s vulnerability to external management risks.

In response to the revelation, Crypto Expert Arthur reacted to Stream Finance’s announcement about losing $93 million, saying, “Finally, the bodies start surfacing.” This implies that hidden problems in the DeFi or crypto industry are now starting to be revealed publicly.

What’s Next for Stream

Stream Finance has pledged to work closely with legal and financial experts to recover the lost assets and restore operations as soon as possible. Until then, users are advised to stay patient and follow official updates from the platform’s verified channels.

This incident serves as a reminder of the risks in decentralized finance; even well-known platforms can face unexpected challenges when external managers are involved.

FAQs

What happened to Stream Finance?

Stream Finance paused all withdrawals after an external fund manager caused a $93 million loss. An independent investigation is now underway to recover funds.

How much money did Stream Finance lose?

The platform confirmed a $93 million loss linked to an external fund manager handling part of its investment portfolio.

Can I withdraw my money from Stream Finance?

No, all deposits and withdrawals are currently frozen. This is a temporary measure to secure remaining assets during the investigation into the $93 million loss.

When will Stream Finance resume normal operations?

The team hasn’t given a timeline yet and says withdrawals will remain paused until the investigation is complete and assets secured.

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The Robots Are Trading - But Who’s Watching Them?

Finance Magnates

AI is transforming trading, automating execution, decoding data, and amplifying strategy. But as machines gain autonomy, brokers and traders must balance efficiency with ethics, keeping human judgment at the core.

Financial services have long been fertile ground for technological experimentation, but the advent of Artificial Intelligence (AI) has pushed the sector into uncharted territory. Trading, with its blend of high-stakes decisions, unpredictable markets and stringent regulatory oversight, offers the opportunity for complex and far-reaching applications when it comes to AI.

The question facing brokers, platform providers and traders alike is no longer whether AI will transform the way markets function, but how far that transformation can realistically go, and where the limits must be drawn.

Discover how neo-banks become wealthtech in London at the fmls25

At this year’s Finance Magnates London Summit (FMLS:25), the panel “Secret Agent: Deploying AI for Traders at Scale” will bring together leading voices shaping the next frontier of AI in financial services. Moderated by Joe Craven, Global Head of Enterprise Solutions at TipRanks, the session will feature David Dyke, Head of engineering,- Wealth, CMC Markets, Guy Hopkins, Founder and CEO, FairXchange, and Ihar Marozau, Chief Architect, Capital.com

Together, they’ll explore how AI is redefining the boundaries of trading and investment, from the ethics of automation and the realities of implementation to what human intuition still does best. Expect a frank, forward-looking discussion on tech, trust, and trader behavior in an era where algorithms are the new secret agents of finance.

What AI Can (and Cannot) Replace

At its best, AI serves as a powerful co-pilot for traders. Machine learning systems excel at processing vast quantities of market data, identifying patterns, and generating signals that could be invisible to human eyes.

Platforms such as Capitalise.ai, which lets traders automate strategies using natural language commands, show how AI can take over repetitive execution tasks and strip emotion out of decisions. Similarly, Trade Ideas has popularized its “Holly” AI engine, which scans markets in real time and generates actionable trade suggestions according to various strategies.

Aryan Rakib
@tec_aryan
ChatGPT-4o is a GENIUS stock trader.
But 99.9% people are unaware of how to use it.
Here's the list of AI Tools for trading in 2025: 👇 pic.twitter.com/nfiT3711rz
Oct 09, 2025

As tools like these gain traction, they highlight what machines can do, but also what they cannot. AI can optimize strategies, enforce risk controls, and execute with precision, but it struggles when confronted with sudden shifts or black swan events.

Human traders and advisors remain indispensable when narratives change abruptly, during geopolitical shocks, unexpected regulatory interventions, or crises of confidence that can never be fully modelled. Trust, accountability, and the ability to interpret nuance continue to sit firmly with people.

How AI Tools Are Being Used Today

Across the trading landscape, AI is moving from experimental tools to everyday use. Retail traders are increasingly turning to accessible platforms like Tickeron, which provides AI-driven forecasts and price predictions.

Social trading services such as ZuluTrade or eToro allow users to follow and replicate algorithmic strategies designed by experienced signal providers in the logical advancement of copy trading.

In China, Tiger Brokers has gone a step further by embedding the DeepSeek AI model into its services, offering clients enhanced research and risk analysis capabilities. These are but a few examples of how AI is rapidly changing the nature of the industry.

Quant Science
@quantscience_
🚨BREAKING: A new Python library for algorithmic trading.
Introducing TensorTrade: An open-source Python framework for trading using Reinforcement Learning (AI) pic.twitter.com/d9QWRBj1iT
Oct 12, 2025

Institutional players are also expanding the frontier. Market simulators such as ABIDES can be used by hedge funds and quant shops to train autonomous agents that test strategies in realistic, high-fidelity environments. The surge in participation in competitions like the WorldQuant International Quant Championship underscores how AI is lowering the barriers to entry for aspiring participants, broadening the talent pool available to institutions.

The Challenges Brokers Face

For brokerages, the promise of AI comes with serious hurdles. Chief among these is compliance. Regulators demand transparency and audit-ready procedures, yet many AI systems operate as black boxes, making it difficult to explain why a particular trade was made.

This lack of explainability risks undermining trust among both regulators and clients. Ethical risks, from biased models to the potential for destabilizing feedback loops, must also be addressed at the design stage. Bodies such as FINRA have issued guidelines on how AI systems must be tailored toward transparency.

Beyond regulation, there are practical challenges. Models must be retrained to stay relevant as market regimes evolve, requiring continuous investment in data infrastructure and talent. Legacy systems at many brokerages are poorly equipped to integrate modular AI tools, slowing adoption.

Even when models work well, persuading clients to trust them is another barrier. Behavioral resistance, whether from retail users wary of losing control, or advisors reluctant to cede authority, remains a persistent drag on adoption.

Ethics and the Human Boundary

This tension between machine intelligence and human judgment brings ethical boundaries into sharp focus. AI can streamline execution and enhance efficiency, but decisions about fairness, market integrity, and client trust must remain human. Clients might expect to know when recommendations are generated by AI, what assumptions underpin them, and where the risks lie.

Equally, firms must guard against the risk of over-dependence, ensuring that human expertise does not atrophy as machines take on greater responsibility. The ultimate safeguard is clear human oversight: protocols for intervention, override and accountability when systems go wrong.

AITECH
@AITECHio
🤔 What Are AI Ethics?
As AI continues to evolve, so do the ethical questions surrounding its use. AI ethics is a framework of principles designed to ensure AI technologies are developed and deployed responsibly.
Key pillars of AI ethics include:
✔ Fairness
✔ Transparency… pic.twitter.com/UCLFPTeDxj
Feb 07, 2025

The Road Ahead

Looking forward, the future of AI in trading is likely to be hybrid. Brokers will continue to develop ecosystems in which algorithms provide efficiency, scale, and precision, while humans deliver oversight, trust, and narrative interpretation. Platforms are already hinting at this shift. Nansen recently launched an AI chatbot designed for crypto traders that was built on Anthropic’s Claude.

The move represents an early step toward fully autonomous, user-defined portfolio management, though at present it’s billed as an assistant. Zerodha’s CEO has argued that brokers may evolve into infrastructure providers, offering pipes that connect clients to markets while AI tools handle much of the interaction.

The likely trajectory points toward the use of configurable, focused AI modules, explainable systems designed to satisfy regulators, and new user interfaces where investors interact with AI advisors through voice, chat or even immersive environments. What will matter most is not raw technological horsepower, but the ability to integrate machine insights with human oversight in a way that builds durable trust.

Final Thoughts

AI has already changed the way traders approach markets, from retail platforms that democratize access to chatbots to institutional agents being able to test strategies at scale. But its true role should not be to replace human intelligence, it should be a partner that can augment, accelerate and discipline decision-making.

The brokers and platforms that succeed in the coming years will be those that strike the right balance between algorithmic precision and human judgment, embedding ethical boundaries and transparency at every step. In doing so, they will not only shape the future of advice, autonomy and algorithms, but also redefine what it means to trade in an age where the secret agent on your side is artificial intelligence itself.

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Bitget Lists PLAY AI (PLAI) for Spot Trading

Chainwire

Seychelles, Victoria, November 4th, 2025, Chainwire

Bitget, the world’s largest Universal Exchange (UEX), announced the listing of PLAY AI (PLAI) in the Innovation and AI Zone, adding it to spot trading. Trading for the PLAI/USDT pair will begin on 4 November 2025, 12:00 (UTC), with withdrawals available from 5 November 2025, 13:00 (UTC).

PlayAI Network (PLAI) is a modular blockchain infrastructure and decentralized orchestration layer designed to bridge AI and crypto applications across the gaming ecosystem. Built as an Actively Validated Service (AVS) on EigenLayer, PlayAI leverages Ethereum’s security model to create a scalable and interoperable environment for AI-driven gaming.

At its core, PlayAI enables developers to seamlessly integrate AI agents and models into games and Web3 applications through a user-driven data pipeline. Players are rewarded with the native $PLAI token for sharing gameplay data, which is then used to train and enhance AI models. The network’s architecture includes the Play Hub, Oasis Nodes, Aura Agent, and Play Studio. Its orchestration layer acts as intelligent middleware, automating interactions between Web2 and Web3 systems through workflow prompts known as “Plays,” effectively positioning PlayAI as the “Zapier of onchain AI.”

Bitget’s Universal Exchange (UEX) combines exchange grade infrastructure with OnChain access, giving users a single account to discover and trade millions of tokens across leading networks. While this open gateway enables broad market access without traditional listing bottlenecks, Bitget’s listing highlights a different tier of assets—projects with real backing, clear utility, strong community and partner support. Together, UEX offers both breadth and quality: universal discovery at scale, and curated opportunities for users who prefer to explore crypto's vastness. The addition of PlayAI (PLAI) further broadens these opportunities, strengthening Bitget’s role in expanding the intersection of AI, gaming, and Web3 innovation. Where decentralized intelligence, user participation, and real-world utility converge within the Universal Exchange ecosystem.

For more details on PLAY AI (PLAI), visit here.

About Bitget

Established in 2018, Bitget is the world's largest Universal Exchange (UEX). Serving over 120 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions, while providing real-time access to Bitcoin, Ethereum, and other cryptocurrency prices. Bitget Wallet is a leading non-custodial cryptocurrency wallet that supports over 130 blockchains and millions of tokens. It offers multi-chain trading, staking, payments, and direct access to 20,000+ DApps, with advanced swaps and market insights built into a single platform.

Bitget is driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World's Top Football League, LALIGA, in EASTERN, SEA and LATAM markets. Aligned with its global impact strategy, Bitget has joined hands with UNICEF to support blockchain education for 1.1 million people by 2027. In the world of motorsports, Bitget is the exclusive cryptocurrency exchange partner of MotoGP, one of the world’s most thrilling championships.

For media inquiries, please contact: media@bitget.com

Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to allocate funds only to what they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

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Simran Alphonso

media@bitget.com

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US prosecutors seek five-year prison terms for Samourai Wallet founders

The Block

U.S. prosecutors are seeking five-year prison sentences for both Samourai Wallet founders, alleging they developed and marketed a crypto mixing service that helped launder hundreds of millions in criminal proceeds.

The prosecutors submitted a sentencing memorandum on Friday, requesting 60 months' imprisonment for both Keonne Rodriguez and William Lonergan Hill.

"For nearly a decade, Rodriguez and Hill owned and operated a massive money laundering service known as 'Samourai Wallet,' which laundered millions of dollars in criminal proceeds on behalf of its customers," the filing said.

According to the filing, at least $237 million in illicit proceeds — stemming from drug trafficking, darknet marketplaces, cyber intrusions, fraud, murder-for-hire schemes, and one website for illicit material involving minors — were laundered through Samourai between 2015 and April 2024. During this period, Rodriguez worked as co-founder and CEO of Samourai, and Hill served as co-founder and CTO.

The prosecutors added that Hill admitted in his sentencing letter that he invited "computer hackers and other criminals" to launder their crime proceeds through Samourai.

Sentencing this week

In June 2025, a grand jury issued a superseding indictment against Rodriguez and Hill, charging them with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. On July 30, both Rodriguez and Hill pleaded guilty to the latter charge under separate plea agreements, according to the filing.

Prosecutors calculated an offense level of 35 for both defendants, corresponding to a sentencing range of 168 to 210 months under federal guidelines. However, the filing concluded that the applicable sentence is 60 months' imprisonment, as that is the statutory maximum for a violation of Section 371.

The Probation Office recommended a sentence of 42 months for each defendant. Rodriguez requested a sentence of one year and one day, and Hill sought a sentence of time served, meaning he asked for no additional jail time, according to the filing. The Samourai founders were both arrested on April 24, 2024.

Rodriguez is set to be sentenced on Nov. 6, while Hill's sentencing is scheduled for Nov. 7.

Roman Storm

The demand for a five-year sentence reflects a broader crackdown by U.S. prosecutors on crypto mixing and privacy services.

In August, a jury in Manhattan found Tornado Cash co-founder Roman Storm guilty on one charge of operating an unlicensed money transmitter, while it did not reach a verdict on Storm's money laundering and sanctions charges.

The verdict sparked backlash from the crypto community, with advocates — including the Ethereum Foundation and the Solana Policy Institute — donating to aid Storm's legal defense.

As of today, Storm remains free on bail while his attorneys pursue a post-trial motion for acquittal on all three charges. Storm could face up to five years of imprisonment on the money transmission conviction if the motion fails.

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Bitcoin Breakdown Begins — On-Chain Signals Say “Brace for $104K”

Beincrypto