Crypto market slides to multi-month lows

The cryptocurrency market endured a steep correction this week, with Bitcoin dropping around 12% and Ethereum down nearly 13%, their sharpest weekly declines in months. The sell-off followed heavy liquidations across leveraged positions, with over $1 billion wiped out in a 24-hour span. Analysts cited a mix of macro uncertainty, risk-off sentiment, and renewed ETF outflows as key drivers of the downturn. Altcoins saw even deeper losses, with many large-cap tokens down 20 to 30%. Market sentiment slid into 'Extreme Fear' as investors moved to de-risk ahead of the weekend.

Global regulator flags gaps in crypto oversight

The Financial Stability Board, the G20’s risk watchdog, warned of significant gaps in the global framework for crypto regulation. In a report released this week, the body urged jurisdictions to accelerate implementation of its recommendations and to address cross-border supervision, data quality, and risks from interconnections with traditional finance. The FSB said inconsistent rules and incomplete adoption leave the system vulnerable to market stress and contagion. It called for better monitoring of stablecoins and crypto intermediaries, plus stronger tools to manage failures. The report arrives as markets remain volatile and policymakers weigh next steps on digital-asset rules.

France widens AML checks on exchanges as EU licensing looms

France has expanded anti-money-laundering checks on major crypto exchanges as authorities determine which firms will qualify for EU-wide licensing under the bloc’s MiCA regime. According to reporting cited from Bloomberg, platforms including Coinbase and Binance are among those being reviewed. The push aims to tighten compliance standards ahead of broader passporting across the European Union. Heightened scrutiny adds to an already active regulatory calendar for centralized exchanges as they navigate new disclosure, custody, and consumer-protection rules. The review comes during a week of elevated market stress and risk-off positioning across digital assets.

Sentiment flips to Extreme Fear

Market mood deteriorated quickly alongside the selloff. The widely followed Bitcoin Fear & Greed Index fell to 22, signaling Extreme Fear, after spending much of last week in Greed territory. The rapid swing reflects rising volatility, ETF outflows midweek, and macro uncertainty. Sharp sentiment shifts like this often accompany capitulation-style moves during corrections, though they do not predict near-term direction. Traders are watching whether flows stabilize and liquidity improves into next week.

Bitcoin ETF Flows

On Monday (Oct 13), U.S. spot Bitcoin ETFs recorded large net outflows of about $326m, led by redemptions at Grayscale’s GBTC (~$145m) and meaningful outflows at Fidelity’s FBTC (~$93m) and Bitwise’s BITB (~$116m). On Tuesday (Oct 14), flows flipped positive with roughly $103m of net inflows, driven by sizeable creations at Fidelity FBTC (~$133m) while BlackRock’s IBIT saw outflows (~$31m). Wednesday (Oct 15) reversed again with about $104m in net outflows as Invesco’s BTCO (~$11m) and GBTC (~$83m) weighed. Thursday (Oct 16) was the weakest day, showing roughly $531m in net outflows, dominated by ARK 21Shares ARKB (~$275m), Fidelity FBTC (~$132m) and GBTC (~$45m). For the week to date, flows skewed negative, underscoring risk-off positioning after recent price volatility.

Ethereum ETF Flows

On Monday (Oct 13), spot Ether ETFs saw heavy net outflows around $429m, with the largest redemptions in BlackRock’s ETHA (~$310m) and Grayscale’s ETHE (~$21m) and ETH (~$50m). On Tuesday (Oct 14), flows swung positive with about $236m in net inflows, led by Fidelity’s FETH (~$155m) with additional buys across ETHE (~$15m) and ETH (~$35m). Wednesday (Oct 15) added roughly $170m of net inflows, driven by strong creations into BlackRock ETHA (~$164m) while some products such as 2Shares TETH saw small outflows (~$8m). Thursday (Oct 16) weakened again to about $57m of net outflows, led by Grayscale ETHE (~$69m) plus smaller redemptions at FETH (~$12m) and ETHW (~$16m). Overall, Ether products finished the midweek stretch mixed but notably stronger than Bitcoin on Tuesday and Wednesday before outflows resumed.

Biggest Dippers (Coins Available on Metal Pay)

Every major token traded lower this week as the crypto market faced one of its sharpest corrections of the year. Litecoin led declines, falling 33% over seven days, followed by Dogecoin, Hedera, Metal DAO, and LOAN Protocol — all posting drops between 23% and 28%. The synchronized downturn reflects broader risk aversion after large ETF outflows and leveraged liquidations pushed the Bitcoin Fear & Greed Index into 'Extreme Fear' territory. Analysts say the widespread losses suggest capitulation rather than selective weakness, with risk appetite at multi-month lows.