Weekly Wrap: Crypto Under Pressure As A.I. Trade Unwinds
Cryptocurrencies remain under pressure as investors rotate money out of technology stocks amid growing concerns about a bubble forming in artificial intelligence (A.I.) stocks. Bitcoin’s price briefly dipped below $80,000 U.S. on Oct. 16 amid the market volatility. Other cryptocurrencies such as Ethereum are also sliding lower.Digital assets have been under heavy pressure throughout the past week as concerns about the A.I. trade worsen. In Asia, South Korea’s main KOSPI stock exchange suffered a mini crash this past week, falling 6% in a single trading session, as Asian chip stocks pulled back sharply. Rising oil prices and bond yields also continue to roil risk assets such as crypto.Bitcoin’s price dropped to $79,800 U.S. early on Oct. 16 before recovering to trade at $81,000 U.S. late in the day. Over the past trading week, Bitcoin’s price has decreased 2%, bringing its loss for the month of October to 5%.Here’s what else happened with cryptocurrencies over the past week…Kalshi CEO Warns Prediction Markets Could Move Offshore: The CEO of Kalshi warned that efforts by U.S. states to regulate prediction markets could lead the platforms to move offshore. Tarek Mansour said the current battle over how prediction markets are regulated will ultimately decide whether platforms such as Kalshi continue to operate in the U.S. or overseas. Mansour’s comments come as a growing list of U.S. states challenge Kalshi and other prediction markets in court, accusing them of running illegal gambling operations. The U.S. Supreme Court has agreed to hear arguments in the case and could settle the matter in 2027.Michael Saylor Says Bitcoin Bull Market Is Just Beginning: Michael Saylor, the chairman of serial cryptocurrency acquirer Strategy , says a new bull market in Bitcoin has only just begun. In a media interview, Saylor said that Bitcoin’s price would again surpass $100,000 U.S., adding that his “long-term forecast is Bitcoin grows 20% to 30% a year over the next 20 years.” The comments from Saylor come after Bitcoin endured a prolonged “crypto winter” that lasted from October 2025 to the end of June this year.A.I. Agent Steals Ethereum From Digital Wallet: A rogue A.I. agent from OpenAI has reportedly stolen Ethereum from a digital wallet. The A.I. agent accessed an Ethereum test network, found a digital wallet, stole the ETH, and used the funds to finish a coding assignment. OpenAI’s model ran out of money mid-task, found a wallet that wasn’t its own and spent from it without asking. Fortunately, it occurred on a test network. Had the incident occurred on Ethereum’s main network, it would have been real Ethereum taken from someone’s account.Circle Expands Stablecoin To 40 New Markets: Circle Internet Group is expanding its stablecoin to 40 new markets as global demand strengthens. Circle CEO Jeremy Allaire said that businesses and individuals across Asia, Latin America, and the Middle East are increasingly turning to stablecoins for payments. Circle issues the world's second-largest stablecoin after Tether . The expansion comes as stablecoins move beyond crypto trading into everyday payments and international money transfers.Deutsche Bank To Launch Crypto Custody Services: Deutsche Bank , Germany’s biggest lender, is preparing to launch new crypto custody services. The bank says its first institutional digital asset service is weeks away from launch. Before year’s end, Deutsche Bank plans to offer custody services related to Bitcoin, Ethereum, and several stablecoins. Deutsche Bank says that it will eventually allow customers to move crypto into and out of stablecoins, which are digital assets pegged to the value of the U.S. dollar.NFT Marketplace Blur Shuts Down: Blur , once the largest marketplace for Ethereum non-fungible tokens (NFTs), is shutting down due to a collapse in its trading volumes. In a statement, Blur said that it is shutting down its website next month after trading activity collapsed more than 99% from its peak. Blur’s website will go dark on Nov. 12 of this year. Blur is the second NFT marketplace to close in recent weeks. On Oct. 2, another marketplace called Blast announced that it is calling it quits due to weak trading volumes.Ledger Pivots To Smartphones: Crypto hardware wallet maker Ledger has launched a smartphone for users seeking extra protection for their digital assets and online activity. The privately held company has unveiled the “Ledger Atom,” a smartphone that will run Android apps, be available to consumers in 2027, and retail for $899 U.S. Ledger says that the Atom features a secure operating system for sensitive tasks such as crypto transactions, encrypted messaging, and actions by A.I. agents. The new device is being launched after Ledger lost $90 million U.S. earlier this year due to a cyberattack.Binance Launches A.I. Trading Tool: Privately held cryptocurrency exchange Binance has launched a new trading tool that incorporates A.I. The company said its A.I. personalized trading interface is now available to all global English-language users of its platform. The free A.I.-powered suite of tools lets uses tailor market information, portfolio tracking, and trades based on their interests and investment knowledge. Binance said that about 150,000 users tested the new A.I. trading tool during a beta test that began on Sept. 7 of this year.Crypto Firm Payward Buys European Bank: Privately held crypto firm Payward is acquiring Lithuania-based Saldo Bank for an undisclosed amount of money. Payward, which is the parent company of crypto exchange Kraken, is the first crypto company to purchase a bank in the European Union (EU). The move comes after Payward secured a banking license in Europe and moves to expand beyond crypto trading into financial services. Saldo Bank had 163.9 million euros ($180 million U.S.) in total assets at the end of 2025.Coinbase Outlines Ways To Protect Bitcoin: Crypto exchange Coinbase Global has proposed ways to protect Bitcoin from future attacks by powerful quantum computers. In a technical paper, Coinbase urges Bitcoin developers to begin preparing for quantum computing threats, warning that upgrading the crypto’s security could take years. The exchange, which holds approximately 5% of all existing Bitcoin, calls for flexible transaction designs, stronger wallet protections, and an orderly migration process. The crypto industry is increasingly concerned about the future ability of quantum computers to break the cryptography and signatures of digital wallets and steal investors’ holdings of BTC.