The crypto market started the week under pressure after a sharp weekend crash. Prices fell across major digital assets following new U.S. trade actions and ongoing regulatory delays. Questions were raised about how exchanges report liquidations.
Meanwhile, institutional buyers continued to accumulate assets, and broader market activity slowed as the U.S. government shutdown extended.
Liquidation Figures May Be Incomplete, Say Analysts
Hyperliquid CEO Jeff Yan raised concerns about how top exchanges report liquidations. In a post on X, Yan pointed to Binance’s data stream, which shows only the most recent liquidation each second. He said this method could lead to missed data during fast-moving markets.
“Because liquidations happen in bursts, this could easily be 100x under-reporting under some conditions,” Yan said. CoinGlass, a market data platform, also noted that actual liquidation numbers may be higher than reported.
CoinGlass estimated that Friday saw $16.7 billion in long positions and $2.456 billion in shorts liquidated. This was the largest single-day event recorded in the crypto market. The size of the movement has raised fresh questions about transparency in exchange reporting.
Bitcoin Drops After U.S. Announces New Tariffs
Bitcoin dropped from $115,645 to $102,000 on Friday after the U.S. announced new tariffs on Chinese goods. The move came as part of a broader economic strategy led by President Donald Trump.
Other major assets followed. Ether fell to $3,500, while Solana dropped below $140. The price movement followed a brief rally earlier in the month, with Bitcoin reaching a high of $126,200 on October 6.
This volatility led to sharp losses for traders. Analysts linked the sell-off to market fear over renewed trade tensions. Trading volume spiked as prices fell across major exchanges.
Strategy Adds to Holdings During Market Pullback
Michael Saylor’s firm Strategy added 220 BTC to its portfolio last week, spending $27.2 million at an average price of $123,561. Saylor announced the purchase in a Monday post on X.
The company now holds 640,250 BTC, purchased for a total of $47.38 billion. The average buy-in price remains $74,000 per coin. Strategy last purchased 196 BTC in late September.
Despite Friday’s crash, Saylor remained firm in his position, posting, “No tariffs on Bitcoin.” The company reported a year-to-date Bitcoin Yield of 25.9%, which compares BTC holdings to diluted shares.
Strategy’s stock (MSTR) dropped to $309 by Friday, down from $360 earlier in the week. The decline mirrors the dip in Bitcoin, which lost nearly $20,000 in value on Friday alone.
MSTR is still up 63% compared to one year ago, tracking Bitcoin’s 84% rise in the same period. The company’s share price has shown a close correlation with Bitcoin since adopting its BTC strategy.
U.S. Government Shutdown Stalls ETF Decisions
The U.S. government shutdown entered its third week. As a result, over a dozen crypto ETF applications remain on hold. The SEC, which oversees these approvals, is operating with limited staff.
Sixteen crypto ETFs were awaiting final decisions this month. Another 21 applications were filed in the first week of October. No progress has been made due to the funding standoff in Congress.
For normal operations to resume, Congress must pass a new funding bill. Once signed by President Trump, the SEC can continue its review process. Until then, ETF decisions remain paused.
Trade Tensions Ease After Weekend Statements
After a week of rising tension, the U.S. and China released new statements signaling a softer tone. Trump posted on Truth Social,
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment… The USA wants to help China, not hurt it!!!”
China’s Ministry of Commerce also said it is willing to discuss changes to its export controls on rare earths. These controls were part of a wider conflict over technology and supply chains.
Markets may respond to this shift in tone. Analysts noted that reduced tension could help calm both equity and crypto prices in the near term.
