Bitcoin experienced significant volatility this week, dropping below $76,000 following a decline in the stock market and the outcome of the US midterm elections. Despite a brief recovery to $80,000, the asset fell back as major indices like the Nasdaq Composite and S&P 500 saw sharp declines. Institutional demand remained weak, with net outflows from spot Bitcoin ETFs recorded between November 2 and 5.
Binance reported a major security breach involving a loss of $6.34 billion, with approximately $2.85 billion frozen or recovered. The attack, attributed by the FBI to the North Korean group TraderTraitor, involved social engineering of an employee. Other platforms, including Mercado Bitcoin and Crédit Mutuel Arkéa, also suffered significant losses due to cyberattacks targeting hot wallets and infrastructure.
In the AI sector, OpenAI secured $11 billion in funding at a valuation of $1.25 trillion, with backing from SoftBank and MGX. However, the company faced challenges as global regulators began restricting data center construction due to high energy consumption. Meanwhile, Anthropic reported a third-quarter operating loss of $567 million, and Tesla announced plans to phase out Cybertruck production by mid-2027 to focus on the Cybercab.
SoftBank's expansion strategy faced a setback as China blocked its $5.375 billion acquisition of ABB's robotics division. Regulatory concerns regarding data security and AI model training were cited as primary reasons. These developments highlight the growing tension between international AI investment strategies and national security policies in major markets.
