Willy Woo: Bitcoin Bear Market About to Enter Second Phase, Liquidity Turning the Corner Still Awaits

When asked whether he would consider launching another military strike against Iran after the midterm elections, US President Donald Trump explicitly said he would not. Iran requested the US to cease targeting its leaders, and the US agreed. “We’ve fought Iran, we won. This (about Iran) is not a war. We hardly fought. Things are going well, which is why oil prices are down,” he stated.

Onchain Lens reports that Brazilian crypto exchange Mercado Bitcoin was hacked, with $46.5 million in stolen crypto traced to the hacker’s addresses. The hacker currently holds the funds across 46 addresses, including 3,680 ETH, 106 BTC, and $8 million in stablecoins.

According to Bloomberg, after Binance suffered a record $630 million hack, the crypto exchange has increased incentives for some market makers trading on its platform to boost trading activity. People familiar with the matter said that shortly after last week’s security breach, the firm reached out to smaller trading firms, offering higher rebates in spot and futures markets. Per its website, Binance categorizes market makers into different tiers based on the liquidity they provide. Firms contributing a larger share of trading volume qualify for higher tiers, which typically come with larger rebates to lower their transaction costs. Under the one-week promotion, Tiers 2 and 3 market makers will receive the same rebate rates as Tier 4 participants, the platform’s highest tier, the sources added. The changes are designed to give smaller liquidity providers stronger financial incentives to quote on the exchange and maintain deeper order books, the sources noted. A Binance spokesperson said the exchange’s latest post-breach moves help calm the market, adding: “As we prioritize clear communication, we took immediate steps to preserve our core strength: liquidity.” Market makers play a critical role by continuously providing bid and ask quotes; the liquidity they supply allows other investors to trade without triggering sharp price swings. According to Talos, within 24 hours of the hack, Bitcoin order book depth on Binance dropped roughly 30%, with depth within a 1% price range falling from $45 million to $32 million. Market depth measures how much trading volume can be absorbed without causing significant price volatility.

Hyperliquid’s second AQAv2 reserve revenue distribution is scheduled for November 3, totaling approximately 15.3 million USDC, which may provide the Assistance Fund with new "ammunition" for HYPE repurchases.

Meta Platforms (META.O) held a conference call to discuss issuing US dollar and euro bonds in tranches.

Brazilian cryptocurrency exchange Mercado Bitcoin suspended deposits and withdrawals on Monday local time, after wallets linked to the platform were drained across at least 10 blockchains, with multiple security firms estimating losses exceeding $40 million. Monitoring shared by Opsek founder Pablo Sabbatella shows the largest outflow occurred between 06:19–06:53 UTC, involving Ethereum, Solana, Tron, Polygon, Arbitrum, Avalanche, BSC, Stellar and other chains. The attacker’s address now holds roughly 2,852 ETH, 106 BTC, 10,700 SOL, 6.7 million XLM, 77,000 AVAX, plus over 200 other tokens. The transfers were regular transactions, not smart contract exploits; how attackers obtained signing permissions remains unclear. Mercado Bitcoin stated in an X post that it had “identified and swiftly contained” the security incident, noting customers were unharmed, no data breach occurred, and the deposit/withdrawal suspension was a preventive measure. The platform is tracking the assets and cooperating with authorities, and later published target addresses on EVM, Bitcoin, Solana, Stellar, Tron and other chains for tracking purposes. Tether founder Paolo Ardoino confirmed that approximately $4.5 million in USDT linked to the incident has been frozen. There is currently no public evidence linking this event to the recent Binance hack.