The cryptocurrency market opened the week with a noticeable downturn, as Bitcoin slipped 3% to approximately $107,000, Ethereum traded below $3,700, and most of the top 10 digital assets showed red. This typical Monday scenario was compounded by low trading volumes, heightened fear in the market, and a significant ongoing DeFi exploit impacting liquidity pools. The most prominent incident was a major hack against the decentralized exchange Balancer, resulting in an estimated loss of around $128.6 million across seven different blockchain networks.

PeckShield, a blockchain security company, identified the Balancer incident as a multichain coordinated exploit that drained the protocol's treasury wallets overnight. Visible transaction traces indicated transfers totaling $128.64 million, primarily consisting of wrapped ETH derivatives and staking tokens. Specific losses included 6,587 WETH (worth $24.46 million), 6,851 osETH (worth $26.86 million), and 4,260 wstETH (worth $19.27 million). Additional losses were reported on Arbitrum ($6.86 million), Berachain ($12.86 million), BASE ($3.9 million), SONIC ($3.44 million), Optimism ($1.58 million), and Polygon ($232,000). The nature of the exploit, targeting multiple vaults simultaneously, suggests either a compromised admin key or a shared contract vulnerability. Balancer acknowledged the exploit, stating that their engineering and security teams were investigating with high priority. This marks Balancer’s largest incident since 2023, occurring amidst low Total Value Locked (TVL) recovery rates across the DeFi sector, with total DeFi losses in 2025 now exceeding $2.8 billion year-to-date. While the market reaction remained somewhat limited for ETH, the erosion of trust was evident, with TVL trackers showing approximately $400 million in withdrawals within hours.

Meanwhile, XRP experienced its own struggles, trading below both its daily and weekly midbands at $2.47 and $2.81, respectively. Closing at $2.40 after a 4.9% daily slide, both the daily and weekly Bollinger Bands confirmed a bearish bias. The daily midband showed price below the lower range, with $2.26 as the next significant support, while the weekly midband had not been reclaimed since October. The asset's structure has been under pressure for some time, with each bounce since September meeting resistance around $2.70-$2.80, forming a clear supply zone. Unless trading volume surpasses $2.90, the $3 mark remains out of reach. Historically, November has shown an average of +81% strength for XRP, but this cycle appears different, marking the first time since Q1 that the weekly close was below the 20-week band, a setup that typically precedes a 2-3 week drop before reversal. The next demand zone for XRP is around $2.10.

In a contrasting perspective, Wall Street manager Jordi Visser offered a unique take on Bitcoin's current phase, describing it not as "dead money" but rather as being in its own "IPO phase." Visser posits that the market is transitioning from early holders to a broader base of institutional investors, with old whales diversifying and new funds accumulating. This dynamic creates a sideways trading range with intermittent sell spikes, signaling a transition rather than a collapse. Drawing a parallel to traditional equity markets, Visser explained that after an IPO, companies often undergo months of distribution as early investors take profits and new investors build positions. He suggests Bitcoin is now in its first truly liquid cycle, explaining its weakening correlation to NASDAQ as institutional capital views it as a diversifier rather than a tech proxy. Visser asserted that "80% drawdowns are in the past; 10x rallies become 3x, but the network finally qualifies for corporate balance sheets," indicating a maturation of the asset. He explained that if 100 people own half the supply and one sells, 0.5% hits the market; however, if one million people own half, 10,000 sales equate to the same 0.5%, spread across time and price. Bitcoin's current price of $107,000, though seemingly painful, represents its calmest phase of redistribution in its 15-year history.

The immediate outlook for the crypto market hinges on the American trading session, particularly whether institutional desks will buy the Balancer dip or await further audit clarity. For now, crypto enters its first November week defensively, with market participants closely monitoring liquidity leaks rather than price candles. Key levels to watch include Bitcoin's $109,000 band for support reclamation confirmation, with a drop below $105,000 potentially leading to a test of $102,000. XRP needs a daily close above $2.70 to neutralize its bearish setup. Macroeconomic factors, specifically the U.S. PPI and NFP data later in the week, are expected to define Friday's volatility.