Bitcoin News Today: Bitcoin's Decline: Institutional Hesitation and DeFi Crashes Offset Corporate Investments

Bitcoin's dip below $100,000 in October 2025 triggered widespread concern in the market, prompting experts and financial institutions to analyze the causes behind the decline. The cryptocurrency’s seven-year streak of positive October returns—often referred to as "Uptober"—came to an end as investors locked in profits following a summer surge. Additional pressure from global political tensions and economic shifts intensified the downturn, according to

. The sharp fall came after a $19 billion liquidation within 24 hours, set off by President Trump’s announcement of new tariffs on China, which caused to plummet from its all-time high of $126,300 down to $104,600, as outlined in .

This wave of selling revealed growing doubts among major institutional investors. Hargreaves Lansdown, the UK’s top retail investment platform, issued a strong caution to its 1.5 million users, labeling Bitcoin as "far riskier" than traditional assets like stocks and bonds, and warning against depending on it for financial planning. The company pointed to Bitcoin’s volatility and lack of inherent value, despite its impressive past returns. Meanwhile, Bitcoin treasury companies, including Michael Saylor’s Strategy, saw their valuations drop by $20 billion as the price slide reduced market caps, according to

. Nevertheless, Strategy responded by increasing its liquidity to buy more and continued to pay a 10.5% monthly dividend on its shares.

The market’s instability was further highlighted by a loss of trust in DeFi platforms.

, a leading decentralized finance project, was hit by a $128 million exploit on November 3, 2025, as hackers drained liquidity pools across several blockchains, according to . The attack, which stemmed from weaknesses in access controls and oracle systems, led to a 5% drop in Balancer’s BAL token and sent shockwaves through the DeFi sector. Shortly after, Moonwell, another DeFi lending service, lost $1.01 million due to a Chainlink oracle failure that enabled an attacker to take advantage of mispriced collateral, as reported in . These events have deepened worries about whether the DeFi industry is ready for mainstream use.

Despite the turbulence, institutional investors kept adding to their Bitcoin holdings. Prenetics, a health sciences firm, increased its Bitcoin reserves by acquiring 100 BTC at an average price of $109,594, bringing its total to 378 BTC valued at $41 million, according to

. CEO Danny Young outlined a dual focus on expanding the IM8 health brand and building long-term value with Bitcoin, aiming for $1 billion in yearly revenue and an equal amount in BTC assets. In a similar move, Steak 'n Shake introduced a Bitcoin treasury program, rewarding customers with $5 in BTC for every "Bitcoin Meal" purchased through the Fold app, as mentioned in . The initiative, which faced criticism when the chain briefly considered accepting , highlights the increasing trend of businesses integrating crypto into daily transactions.

Still, the underlying market signals are mixed. On October 29, Bitcoin ETFs saw $471 million in net withdrawals, suggesting waning investor enthusiasm, according to

. Blockchain data also showed a rise in the Binance Whale Ratio, pointing to more large holders moving BTC to exchanges, which could indicate more selling ahead. Analyst Jason Pizzino observed that Bitcoin’s current performance is diverging from historical bull market patterns, casting doubt on the reliability of previous cycles as a guide.

The broader cryptocurrency market reflected Bitcoin’s difficulties, with Ethereum,

, and all experiencing double-digit losses in October, as detailed in . Over $1.2 billion in positions were liquidated in just one day, with the largest single liquidation—$33.9 million—impacting both Bitcoin and Ethereum trades.

As uncertainty persists, the interplay of global economic trends, institutional hesitancy, and DeFi security issues is likely to shape the near-term outlook for crypto. While optimists highlight ongoing treasury acquisitions and Bitcoin’s history of resilience, the recent wave of hacks and regulatory attention underscores the sector’s ongoing challenges as it matures.

---