Backpack's Weekly Crypto News: Oct 27 - Nov 3, 2025 | EU Expands ESMA Powers, Bitcoin Breaks 'Uptober' Streak

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Bitcoin's historic "Uptober" momentum collapsed this week, ending a seven-year winning streak with a 3.6% decline, the first red October since 2018.

The world's largest cryptocurrency traded between $107,235 and $111,190, closing the week at $110,182. The total crypto market cap slipped 3.64% to $3.59 trillion.

Meanwhile, European regulators are advancing plans to centralize crypto oversight under ESMA, potentially reshaping the regulatory landscape for exchanges across the EU.

As November begins, historically Bitcoin's strongest month with average gains of 10.3%, traders are watching for signals of a reversal while institutional investors continue accumulating despite heightened volatility.

Key Takeaways

• Top Story: The European Union voted to expand ESMA's powers, creating a unified regulatory framework for crypto assets across all member states under centralized oversight rather than fragmented national licensing.
  
  
• Market Mover: The total crypto market cap fell 3.64% to $3.59 trillion, as Bitcoin faces resistance at $111,000 ahead of critical November price action. The Fear & Greed Index stands at 42, indicating "Fear" among investors.
  
  
• Altcoin Watch: Solana development activity hits an all-time high with over $381 million in institutional inflows during October, exceeding all other altcoins combined, though analysts warn of potential "sunk-cost-maxxing" in long-term projects.
  
  
• What's Ahead: All eyes are on November, historically Bitcoin's strongest month with a 42.5% average gain, as MicroStrategy hints at new purchases and the EU prepares its December draft on centralized crypto oversight.

This Week's Top Crypto Story: EU Plans Centralized Oversight Under ESMA

What Happened?
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The European Commission is preparing sweeping regulatory reforms that would transfer direct supervisory authority over crypto firms from national regulators to the European Securities and Markets Authority (ESMA).

ESMA Chair Verena Ross confirmed the plans aim to address "continued fragmentation in markets" and create "a more integrated and globally competitive" EU financial landscape.

Under the current Markets in Crypto-Assets (MiCA) framework, licenses are issued by individual member states like Lithuania, Malta, and Luxembourg. The new model would bring systemically important firms under direct ESMA supervision, similar to the U.S. SEC.

Why It Matters
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This is the most significant regulatory shift for European crypto markets since MiCA's implementation. It addresses inefficiencies and inconsistent licensing standards across the bloc.
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However, the proposal is controversial. Stablecoin issuers face a dual licensing burden beginning in March 2026, requiring both a MiCA license and a separate payment services license, which critics call a "regulatory own goal."
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Smaller EU member states, including Luxembourg and Ireland, are opposing the shift, concerned that consolidating authority within ESMA could harm their local financial systems.

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What's Next?
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The European Commission is expected to release a draft proposal in December 2025, with implementation likely phased over 2026-2027.
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The final framework will determine if Europe becomes a more attractive hub for innovation or inadvertently drives companies to clearer jurisdictions. For investors, the unified regime promises enhanced protection and transparency.

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Crypto Market Analysis: Why Did October End in the Red?

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The Big Picture October 2025 shattered Bitcoin's seven-year "Uptober" winning streak, marking its first negative October since 2018 with a 3.6% decline. The total crypto market cap fell to $3.59 trillion, and the Fear & Greed Index now reads 42, signaling "Fear."

The month's disappointment followed a dramatic sequence of events. Bitcoin hit an all-time high of $126,300 on October 6, but just four days later, President Trump's tariff announcement triggered the largest liquidation event in crypto history, wiping out $19 billion in positions.

Bitcoin (BTC) Price Update:

• Bitcoin was down 2.81% for the week, trading at $107,048. The cryptocurrency faces critical resistance at the $111,000-$115,000 zone.
  
  
• MicroStrategy's Michael Saylor sparked speculation, posting "November's color is orange." However, the company's October activity slowed, acquiring only 778 Bitcoin, a 78% decline from September.
  
  
• On-chain metrics remain complex. CryptoQuant's CEO noted that "demand is now driven mostly by ETFs and MicroStrategy, both of which have been slowing down their purchases recently," highlighting concentration risk.
  
  
• November has historically been Bitcoin's second-strongest month, with an average gain of 10.3%. Bitfinex analysts forecast Bitcoin could reach $140,000 in November if ETF inflows resume.
  
  

Ethereum (ETH) Update:

• Ethereum extended its October decline, dropping 16.77% over the month and trading at $3,729. It is now 24.7% below its all-time high, with 19 of 29 technical indicators signaling bearish forecasts.
  
  
• Despite price weakness, network fundamentals are robust. The implementation of EIP-4844 reduced transaction costs, and the launch of MegaETH reached a $7 billion valuation, showing developer confidence.
  
  
• On-chain, Ethereum's Net Unrealized Profit/Loss (NUPL) declined, suggesting selling pressure is diminishing and potentially setting up for price stabilization.
  
  
• Institutional interest remains strong, with BlackRock and others viewing ETH as a cornerstone of DeFi. Market experts expect Ethereum to trade between $3,866 and $4,664 in November.

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This Week's Key Headlines

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Australian Police Crack Crypto Wallet, Seize $5.9M in Digital Assets
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The Australian Federal Police successfully decrypted a cryptocurrency wallet containing $5.9 million (AUD $9 million). The breakthrough occurred during an investigation into a suspect who allegedly sold the Ghost encrypted messaging app to criminal organizations.
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AFP investigators discovered password-protected notes on the suspect's phone. A data scientist identified the notes as a coded 24-word seed phrase, granting access to the wallet.

NFT Market Navigates 26% Sales Decline Despite Growing User Base

The NFT market saw a 26% decline in weekly sales volume to $101 million. Paradoxically, the number of NFT buyers surged 24% to 604,147, indicating a shift toward more distributed ownership rather than high-value speculative flips.
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Ethereum remained the dominant chain with $36.75 million in volume (a 62% decrease), while Bitcoin network NFT trading bucked the trend with a 15.57% increase.

Crypto VC Funding Rebounds: October Surges to $5.11 Billion

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Crypto venture capital activity hit $5.11 billion in October, pushing the year-to-date total over $22 billion, exceeding all of 2024.

The month's marquee transaction was Coinbase's $375 million acquisition of Echo, a community-based on-chain investment platform. Other significant raises included Pave Bank's $39 million Series A.

Trump-Xi Tariff Agreement Eases Trade Tensions, Crypto Markets Stabilize

President Trump and President Xi Jinping reached a de-escalation agreement, reducing U.S. tariffs on Chinese goods from 57% to 47%.
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The breakthrough follows October's massive disruption when Trump's initial 100% tariff announcement triggered $19 billion in liquidations. The tariff reduction has contributed to improved market sentiment, with Bitcoin recovering to $110,000.

Altcoin & Token Watch

• Riser of the Week: Solana (SOL)
  Solana emerges as the altcoin standout, with institutional investors pouring in over $381 million since early October, exceeding all other altcoins combined. This surge is backed by the launch of Bitwise's BSOL ETF and Grayscale's GSOL ETF, providing regulated exposure for traditional investors.
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• Tale of the Tape: Bitcoin Dominance vs. Altcoin Season Speculation
  Bitcoin dominance increased in October as capital rotated to safety, delaying the anticipated "altcoin season." The Altcoin Season Index remains below the critical 75 threshold, though recent data shows altcoins appreciated 12% more than Bitcoin over the past 30 days, a potential early sign of rotation.
  
  

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New on Backpack Exchange

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Solana Network News

Solana's October performance showcased its growing institutional credibility. The Layer-1 blockchain recorded over $381 million in institutional inflows, surpassing the combined inflows of all other altcoins.

The network achieved a major milestone with the launch of two U.S. spot ETFs: Bitwise's BSOL and Grayscale's GSOL. These regulated vehicles provide traditional investors easy access to Solana exposure.

Development activity on Solana reached all-time highs in October. Technical analysis shows SOL finding support in the $180-$185 range, with analysts projecting a potential move toward $200 by late November.

From the Backpack Learn Portal

Want to understand this week's news better? Dive deeper with our comprehensive guides on Backpack Learn:

• What is ERC 8004?
  
  
• What is Solana?: Explore the high-performance blockchain leading institutional inflows and launching new ETFs.
  
  
• What is x402?

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The Week Ahead

November begins with several potential catalysts. MicroStrategy's cryptic "November's color is orange" post from Michael Saylor strongly suggests an imminent Bitcoin purchase announcement.

The European Commission is expected to provide more details on its ESMA centralization proposal ahead of the formal December draft.

Multiple significant exchange listings are scheduled: ai16z (AI16Z) lists on MEXC November 5, APRO Oracle (AT) on Bitget November 5, and BILLIONVIEW on MEXC November 6.

November has historically been Bitcoin's second-strongest month. The combination of seasonal patterns, potential institutional re-entry, and improving trade relations creates conditions for a positive month.

Altcoin season speculation also continues to build. Analysts are watching for Bitcoin to establish stability above $110,000 as a potential trigger for capital rotation into Ethereum, Solana, and other large-cap alts.

What story are you watching next week? Share your thoughts in the comments or join our discussion on the Backpack community channels.

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