Morning Crypto Report: Mt. Gox Halloween Deadline Haunts Bitcoin at $111,000, XRP in Focus as Ripple Joins US Summit, $500 Million Binance Outflow Adds Fear
Halloween Came Early for Crypto as Market Rebounds Amid Lingering Fear
After a week dominated by red candles, the cryptocurrency market staged a sharp rebound over the weekend, sparked by $339 million in short liquidations. Despite this bounce, the prevailing sentiment remains cautious. Bitcoin currently trades at $111,000 and Ethereum at $4,080—both up 4-5% in the last 24 hours. Yet, the market’s skepticism is palpable.
Funding rates have remained negative for six of the past seven days, currently sitting at −0.004%. This classic sign of disbelief means that as prices climb, more traders are piling on short positions. Each short position holds the potential to generate future buy pressure if prices continue to rise.
Data from Polymarket further reflects this cautious mood. The probability of Bitcoin hitting $100,000 in October has plummeted to below 25%. Meanwhile, spot Bitcoin ETFs saw outflows totaling $1.23 billion last week, and Ethereum ETFs lost $311.8 million. Although outflows can stall narrative momentum, they also accumulate powder for possible contrarian short squeezes.
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Bitcoin Holds at $111,000 as BlackRock Introduces New Bitcoin ETP in London
As Bitcoin consolidates around the $111,000 mark, the immediate path forward depends on liquidation heatmaps. Two notable zones—$113,000 and $126,000—stand out as levels where shorts could be “smoked” should bullish momentum persist. Interestingly, whales are actively playing both sides of the market.
One of Bitcoin’s longest-standing traders recently deposited $30 million USDC on HyperLiquid and opened a 700 BTC short, roughly $76 million, at an entry price of $109,133 with liquidation set at $150,080. This sizable position signals either strong conviction or desperation. If Bitcoin’s price continues to climb, this setup could fuel a significant short squeeze.
On the regulatory front, BlackRock’s UK Bitcoin ETP began trading in London following the FCA’s decision to ease its ban on crypto-linked products. This move provides British institutional investors with a regulated gateway to Bitcoin, contrasting with ongoing outflows from U.S. ETFs.
It will be interesting to observe whether market trends in the UK diverge from those seen with BlackRock’s Bitcoin ETF across the Atlantic.
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XRP in Focus as Ripple CLO Heads to Washington
XRP has rebounded to $2.46, recovering losses incurred last week. However, today’s spotlight is on politics rather than price action. Ripple’s Chief Legal Officer Stuart Alderoty is confirmed to participate in a Senate roundtable this Wednesday, hosted by Senator Kirsten Gillibrand.
Joining Alderoty will be key figures from Coinbase, Chainlink, Galaxy, Kraken, Uniswap, Circle, Solana Institute, Jito, and a16z Crypto. The discussion will focus on market structure legislation and DeFi regulation.
For Ripple, this event marks a critical moment of visibility in Washington as the company pushes for parity with banks within the U.S. financial system. Past fluctuations in XRP’s value during SEC vs. Ripple disputes remind investors that policy remains as influential as charts in driving token performance.
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Mt. Gox Halloween Deadline Looms with $34,689 BTC at Stake
While many were preoccupied with Black Friday, October 31 has resurfaced as an important date—not only for Halloween but as the deadline for Mt. Gox creditor repayments.
Trustee wallets of the infamous crypto exchange still hold 34,689 BTC, valued at approximately $3.8 billion. Historically, about 64.1% of distributed Bitcoins eventually land on exchanges, which could translate to roughly 22,253 BTC—or $2.4 billion at current prices—hitting the market.
However, there is a mitigating factor: the distribution process is staggered. Exchanges such as Bitstamp and Kraken require 60 to 90 days to process payouts, invalidating any notion of a sudden $2.4 billion dump overnight.
Nonetheless, the looming Mt. Gox supply continues to weigh on traders’ minds. Even staggered distributions can suppress rallies, especially against the backdrop of negative ETF flows. With Bitcoin hovering near $111,000, any fresh supply shock could amplify price pressure. Thus, October 31 remains a significant fear anchor in the market.
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Binance Faces $500 Million Outflow Amid Amazon Outage That Knocks Coinbase Offline
Two of the largest crypto platforms encountered troubles on the same day. Whale Alert reported a $497 million USDT withdrawal from Binance to an unknown wallet—the largest stablecoin outflow this year. This has sparked questions among market participants: Was this a profit-taking move? Will more stablecoins leave Binance? And could such outflows threaten Binance’s solvency?
Meanwhile, Coinbase experienced an outage triggered by an AWS failure that also impacted Signal, Zoom, Amazon, McDonald’s, Disney, and Snapchat. For several hours, Coinbase users were unable to log in, trade, or withdraw funds.
Though rare, outages like these expose vulnerabilities in crypto access that depend heavily on Web2 infrastructure. Historically, such disruptions tend to trigger market corrections.
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Evening Outlook
As U.S. trading nears its close, the cryptocurrency market remains fragile but well-positioned for potential headline-driven moves. Key areas to watch include liquidation zones around Bitcoin, regulatory developments in Washington, and the ongoing impact of large-scale ETF outflows.
Stay tuned as these dynamics continue to evolve in the coming days.
https://u.today/morning-crypto-report-mt-gox-halloween-deadline-haunts-bitcoin-at-111000-xrp-in-focus-as-ripple
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