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This week in Web3 didn’t simply tighten nerves, it reshaped the mood of the entire market.
Bitcoin logged its steepest weekly decline since March, the Fear & Greed Index plunged into the lowest zone seen this cycle, and long-term holders offloaded more than 800,000 BTC: a rare signal that the “patient money” is no longer willing to wait. Adding to the turmoil, a Bybit report revealed that 16 major blockchains have built-in fund-freezing mechanisms, reviving questions about how decentralized these networks truly are. At the same time, Coinbase pushed forward with the public sale of $MON - the first regulated U.S. token launch since 2018, testing whether the industry is ready for a new era of compliant ICOs. Here’s what shaped the week and why it matters.
Bitcoin fell below the $95,000 level last week, losing around 9 percent in just seven days. It marked the sharpest weekly decline since March, and the asset is now down more than 25 percent from its October peak near $126,000. The main drivers are clear: fading expectations of Federal Reserve rate cuts, weaker liquidity flows, rising Treasury yields, and a wave of forced liquidations across derivatives markets. Add to that the “information vacuum” caused by the U.S. government shutdown delaying key macro releases and uncertainty only deepened.
Technically, analysts noted that breaking below the critical $100,000 support opened a path toward the $84,000 region if downward momentum continues. For market participants, this isn’t just a “technical correction”, it’s a signal of a deeper shift. Liquidity is thinning, sellers are gaining confidence, and large buyers are nowhere to be found. A bounce is possible in the medium term, but pressure remains heavy. The takeaway is straightforward: expect volatility, not comfort. Anyone treating Bitcoin as a “safe alternative” to risk assets just got a reminder that it is still one of the riskiest assets in global markets and the market plays by its own rules, not by your hopes.
At the same time, sentiment across the crypto market collapsed. The Crypto Fear & Greed Index dropped to around 10 - deep into “Extreme Fear.” Some outlets reported a slightly higher reading, around 16, but the message is the same: panic is dominating the market. This index matters because it reflects the emotional state of participants. Extremely low readings historically often appeared near market reversals but that’s a pattern, not a promise. What’s behind the fear now? A cocktail of macro stress: the Fed’s hawkish stance, rising yields, weak liquidity, and accelerating capital outflows across the board. This isn’t just a correction; it’s a regime shift from euphoria and overconfidence to caution and risk aversion. Practically speaking, extreme fear can be an opportunity, but only for those with capital, patience, and a plan. Without a strategy, emotion becomes an enemy, not an edge.
Trust is evaporating quickly. Sellers dominate, buyers hesitate, and the market is in observation mode, not in a “send it” phase. If you’re building an entry strategy, remember: this isn’t a battlefield: it’s the waiting room before the next move.
Another red flag: long-term holders have started to unwind. Over the past 30 days, roughly 815,000 BTC were sold by addresses associated with “old money” - the largest wave since January 2024. This surge in distribution increases sell-side pressure at a time when demand is weakening. Here’s how to interpret it: long-term holders typically sit through volatility, so when they begin selling, it’s rarely random. It suggests either expectations of deeper downside or a strategic profit-taking window. The combination of macro stress, weak spot demand, and deteriorating sentiment likely accelerated the move.
This kind of supply flush typically overwhelms markets if buyers are passive and that’s exactly what we’re seeing. Excess supply adds downward pressure, forming a feedback loop: falling prices create fear, fear triggers more selling, selling pushes prices even lower. What to watch next: where the BTC flows. Are coins going to exchanges (bearish) or OTC desks (neutral)? Are institutions absorbing supply or stepping back? Right now it seems absorption is limited, meaning sellers have the upper hand. The conclusion is blunt but accurate: sellers control the moment. This isn’t just a correction, it’s a rebalancing of power between holders and buyers. For new entrants, this creates opportunity. For everyone else, it demands patience and proper risk management.
Bybit’s Lazarus Security Lab reviewed 166 blockchains and found that 16 of them contain built-in mechanisms that allow funds to be frozen or restricted without user consent. In practice, this means some networks can intervene directly in asset movement. Real-world examples already exist: BNB Chain executed a hardcoded blacklist after the $570 million bridge exploit, while VeChain froze funds following its 2019 wallet breach.
The report categorizes these mechanisms into three groups:
🔹 those embedded directly into the protocol itself,
🔹 those controlled by validators or a foundation,
🔹 those implemented through on-chain smart contracts.
From one angle, these features can act as emergency tools. When a hack happens, the network can react fast, limit damage, and help recover losses. But the other side is harder to ignore: if someone has the power to freeze your assets, decentralization becomes a tagline, not a principle. The question shifts from “how secure is the chain?” to “who holds the kill switch?”
For users, this changes the entire decision matrix. Choosing a blockchain isn’t just about fees, speed, or ecosystem size - it’s also about governance and who has the authority to intervene. Transparency around these mechanisms becomes a core part of trust.
For protocols and foundations, there are only two strategic choices: openly acknowledge these controls and define clear governance rules, or risk being labeled as a network where “decentralization is optional.” And once that narrative sticks, it’s hard to shake off.
Despite the Web3 slogans about permissionlessness and censorship-resistance, many chains still rely on centralized safety valves. These mechanisms aren’t inherently bad but they’re trade-offs, and trade-offs need to be understood, not hidden. If you’re holding assets or choosing a chain to build on, it’s worth asking uncomfortable questions. Who can freeze funds? Under what conditions? Is there an unfreeze process? Without clear answers, “security features” can quickly turn into central points of control and that’s the one thing crypto was supposed to eliminate.
Monad has released the full tokenomics for MON ahead of its mainnet launch, confirming a total supply of 100 billion tokens. The distribution is intentionally structured to look “fair”: 7.5 percent for the public sale, 3.3 percent for the airdrop, 38.5 percent for ecosystem growth, 27 percent for the team, and 19.7 percent for investors, with around 4 percent going to treasury reserves. More than half of the entire supply - 50.6 percent will remain locked at launch, including team, investor, and treasury allocations. Locked tokens also won’t be eligible for staking early on, preventing insiders from dominating rewards.
The token will serve as gas and staking collateral on Monad, and the team emphasizes long-term participation over quick speculation though markets will ultimately decide that. Transparency is the strongest part of the design, but the real test begins when unlocks hit the market.
In parallel, Monad becomes the first project to launch through Coinbase’s new Token Sales platform. The sale runs from November 17 to 22, with a fixed price of $0.025 per MON, a $100 minimum commitment, and a $100,000 cap for regular users. The allocation algorithm favors smaller bids to prevent whales from swallowing the entire sale. Purchases are made in USDC, and Coinbase is disclosing more sale-side data than any previous token launch, including market maker agreements and token loan arrangements. This event marks the first major return of regulated public token offerings in the U.S. since 2018. If MON’s launch performs well, it could set a new industry standard for compliant ICOs and re-open the door for mainstream token sales. But the risks are real: a fixed price plus a small public allocation is a perfect recipe for hype followed by violent post-listing volatility.
For retail, this is a clean front-door entry but not a guaranteed win. Liquidity, unlocks, and actual demand will decide the fate of MON, not the marketing. And if you’re watching the market from the sidelines, pay attention: this launch is either the new blueprint for crypto distribution… or the next case study in what not to do.
🧲 Volatility isn’t an exception in Web3, it’s the environment everything operates in. Some weeks highlight the structural weaknesses, others uncover openings for those paying attention. This one managed to do both, and with unusual clarity. Stay alert, stay informed, and stay ahead of the curve. See you in next week’s digest.
