Bitcoin Falls Below $100K and Ethereum Drops Under $3,300 as Goldman, Morgan Stanley, and UBS Warn of Major Market Correction

Perp DEX Volume Hits Record $1.2 Trillion in October as Lighter Overtakes Hyperliquid, Driven by Airdrop Incentives and 10/10 Liquidations

Perpetual futures (perp) DEXs hit an all-time high of $1.2 trillion in total trade volume in October, nearly doubling September’s figure. The surge was driven mainly by Lighter, Aster, EdgeX, Pacifica, and ApeX, all setting record monthly volumes. Lighter emerged as the new market leader with a 27% share, overtaking Hyperliquid, whose share dropped to 10% from 33% a month earlier. The record volumes were fueled by widespread incentive programs—mostly “points” schemes tied to future airdrops—and the October 10 liquidation event, which triggered large-scale forced trades and subsequent “revenge trading.” Analysts expect volumes to moderate in the coming months but remain above pre-October levels as incentives continue.

Ethereum Falls Below $3,300 Erasing 2025 Gains as Bitcoin Nears $100,000 and $1.37 Billion in Liquidations Hit Crypto Market

Ethereum’s price fell below $3,300 on Tuesday, erasing its year-to-date gains and marking a 31% drop from its all-time high of $4,946 reached in late August. Bitcoin also plunged near the $100,000 mark after opening at $106,557, contributing to a marketwide selloff that wiped 5.8% off the total crypto market cap, now at $3.45 trillion. The downturn triggered at least $1.37 billion in leveraged liquidations earlier in the day. Analysts attribute the decline to waning trader confidence following October’s flash crash and to renewed uncertainty over the Federal Reserve’s December rate-cut prospects. ETF redemptions have intensified selling pressure, with Bitcoin funds seeing $187 million in outflows and Ethereum ETFs losing $136 million on Monday.

U.S. Prosecutors Seek 5-Year Prison Terms for Samourai Wallet Founders in $237 Million Crypto Laundering Case

U.S. prosecutors have requested five-year prison sentences for Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, accusing them of running a long-term crypto mixing service that laundered over $237 million in illicit funds from darknet markets, hacking, drug trafficking, and other crimes between 2015 and 2024. Both pleaded guilty to operating an unlicensed money transmitting business after a June 2025 indictment. Although federal guidelines suggest 14–17 years, prosecutors are seeking the statutory maximum of 60 months. The Probation Office recommended 42 months, while the defendants requested lighter sentences. Their sentencing hearings are set for November 6 and 7. The case highlights growing U.S. enforcement against crypto privacy tools, following Tornado Cash co-founder Roman Storm’s conviction in August for operating an unlicensed money transmitter.

Goldman, Morgan Stanley, and UBS Warn of 10–20% Market Correction as Global Stocks Slide and Fed Signals Uncertainty

Global markets fell sharply after top Wall Street executives warned of a potential major correction. Goldman Sachs CEO David Solomon predicted a 10–20% equity drawdown within two years, while Morgan Stanley’s Ted Pick said similar declines were likely healthy. UBS Chair Colm Kelleher cautioned about systemic risk in the private credit market, citing weak regulation and questionable ratings practices. The warnings came amid uncertainty from Federal Reserve officials, who said they were undecided about a December rate cut. The combination of bearish outlooks and a U.S. government data blackout due to the ongoing shutdown spooked investors. The STOXX Europe 600 dropped 1.41%, Nikkei 225 fell 1.74%, and the KOSPI tumbled 2.37%. U.S. futures also sank ahead of the open, with the S&P 500 down 1.16% and Nasdaq futures off 1.35%, signaling tech stocks will be hit hardest.