10/17/2025
Digital Asset News for the Week of October 10-17, 2025
Coingarage Exchange
Digital Asset News for the Week of October 10-17, 2025
📉 Market Downturn and Turbulence
The cryptocurrency market weakened significantly during the week — Bitcoin fell by as much as 6.1% to around $104,713, while Ethereum lost around 7.8%.
Both major assets, Bitcoin and Ethereum, broke key support levels, pulling the total market capitalization below $3.8 trillion.
Pressure on the market also came from the broader financial environment: concerns about non-performing loans at regional US banks, geopolitical tensions (e.g. the threat of new tariffs against China), and a general shift towards a “risk-off” mood.
A significant event was the high volume of liquidations: hundreds of millions of dollars were wiped out of leveraged positions in short periods.
🔄 Important news and actions of players in the crypto world
Paxos / PayPal – error in minting stablecoins
There was an error in the creation of 300 billion PYUSD tokens (a stablecoin closely related to Paxos / PayPal) due to a technical error during an internal transfer. The tokens were deleted (burned) within approximately 20 minutes. Paxos assured that there was no security breach or loss of user funds.
Kraken and prediction markets
The Kraken exchange has acquired the CFTC-licensed Small Exchange for $100 million. This move will allow it to offer event contracts (prediction markets) — i.e. products in which bets are made on the outcome of events (political, economic, etc.).
Fed warns of stablecoin risks
Michael Barr from the Federal Reserve stressed during the conference that the boom in stablecoins poses potential systemic risks. He warned of “private money runs” scenarios and the vulnerability of some stablecoins that may not be fully backed by reserves.
Erebor Bank and Trump Era Ties
The fledgling Erebor Bank, backed by billionaire Peter Thiel, has received preliminary regulatory approval to serve tech and cryptocurrency startups. The project has alleged ties to the Trump administration.
📊 Other interesting moves and trends
Significant capital inflows continued in U.S. ETF products for Bitcoin and Ethereum, showing that institutions still see value in regulated products.
Some blockchain projects have faced significant token unlocks or upgrades that have affected investor sentiment. For example, the Sei project received an unlock of 64 million tokens (~1.04% of the supply) on October 10.
In the field of research, a new study, “Cryptocurrency as an Investable Asset Class: Coming of Age,” is being published, confirming that cryptocurrencies already exhibit characteristics similar to traditional asset classes — but with higher volatility and more frequent price jumps.
Other research (Multi-Agent Prediction Model) advances the possibilities of using machine learning and message processing to predict market developments.
We informed you on the Coingarage exchange blog this week ( links to articles )
https://coingarage.io/en/blog/crypto-industry-awaits-final-decisions-on-16-crypto-et-fs-this-month
https://coingarage.io/en/blog/altcoins-ahead-of-alt-season-could-history-repeat
🧭 Summary and what to watch next
The strength of the correction — a sharp decline suggests that the market may enter a consolidation phase or a longer stagnation.
Stablecoins under scrutiny — technical errors in minting, regulation and franc risks show that stable tokens are not without problems.
Institutional interest — despite the declines, institutional flows into regulated products (ETFs) continue.
Regulatory pressure — the outputs of central banks, regulators and politicians will be key to the future direction of the sector.
Project development and innovation — technology updates, token unlocks, and new products (e.g. prediction markets) can often trigger waves of volatility.
*This is not an investment recommendation.
The Coingarage Team
