Bitcoin Drops to $105K as $1.23B Liquidations Hit Crypto Market

The crypto market dropped 1.23% in the past 24 hours, extending a weekly decline of 3.34%. Bitcoin ’s retreat to $106,000 sparked renewed caution, driving investors toward safer assets such as gold. The shift reflects growing macroeconomic uncertainty and a wave of $1.23 billion in crypto liquidations.

Crypto Market Extends Weekly Losses Amid Global Risk-Off Shift

Gold rose to the record highs as traders tried to find refuge in the increasing U.S.-China trade tension and new concerns about the banking industry. The fight to safety has increased the tension on digital assets, and sentiment is sensitive in key exchanges.

Analysts noted that over $1.23 billion in leveraged positions were liquidated, with the majority coming from long traders. The forced selling deepened losses, pushing Bitcoin to its lowest level in 15 weeks and dragging most altcoins down between 7% and 12%.

Bitcoin is now stabilizing near $106,000 after steep declines earlier this week. Ethereum also showed modest recovery, hovering around $3,800 despite the broader bearish tone.

While altcoins tokens recorded slight gains, overall momentum in the crypto market remains weak, with traders cautious about further volatility.

Ondo Finance Pushes Back Against Nasdaq’s Tokenized Securities Plan

Ondo Finance has asked the U.S. Securities and Exchange Commission (SEC) to postpone or decline the proposal made by Nasdaq to trade tokenized securities. In a letter dated Wednesday Ondo made it clear that the offer is not transparent and is based on confidential information. This, the firm believed, may favor the big players on the market unfairly against small players.

The company indicated that the strategy of Nasdaq is not yet complete without the completed input of the Depository Trust Company (DTC), which is considered central with regard to U.S. securities settlement. Although Ondo is an advocate of the concept of tokenization, it opposed the inability to access technical information publicly. The company is sure that the maximum disclosure is necessary prior to the granted regulatory approval.

Ondo requested more cooperation and disclosure and asked SEC to withhold judgment until the system at DTC is completely developed. The original filing introduced by Nasdaq on September 8 is aimed at modifying the trading regulations so that tokenized versions of conventional stocks could be traded. SEC has up to early November or the end of December in case of an extension of the review.

Japan’s Leading Banks Plan Joint Stablecoin Initiative

The leading financial institutions in Japan are proceeding with a stablecoin backed by the yen. Nikkei mentions that Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank plan to introduce a standardized digital currency. The stablecoin, based on the Progmat platform of MUFG, will be aimed at lowering the cost of corporate settlements and enhancing efficiency of payment.

The banks intend to launch the stablecoin at the end of the year. Mitsubishi Corp. will become the pioneer in the internal settlements using the token. Having more than 240 subsidiaries in different parts of the world, Mitsubishi considers this as a method of streamlining operations in the international front and reducing management expenses on administration.

Such an attempt would create the first bank-supported stablecoin network in Japan. It also indicates a rise in the use of blockchain in mainstream finance in these regions.

Crypto ETF Filings Continue Despite U.S. Government Shutdown

This week witnessed greater ETF activity in the crypto market, with more than five new filings being submitted to the SEC. VanEck launched its VanEck Lido Staked Ethereum ETF, which will track the staked ETH token, stETH of Lido. The fund anticipates earning staking rewards on the protocol underlying it.

Another application was made by 21Shares, which applied to have a leveraged crypto ETF of 2x daily exposure to the Hyperliquid token, HYPE. Regulatory uncertainties and the current U.S. government shutdown have not stopped firms, which continue to be aggressive in driving crypto investment vehicles.