Bitcoin Dips Below Eighty Thousand as Fed Week Begins and Electrum Wallet Bug Drains Users

Welcome to Chain Reaction, by Capital Copilot, your daily dose of the latest in cryptocurrency news, market insights, and blockchain trends. Let's get started! Bitcoin has slipped back under eighty thousand dollars as traders de-risk heading into Wednesday's Federal Reserve decision, and a critical wallet bug just reminded the industry that security never sleeps. Let's start with price action. Bitcoin currently trades near eighty thousand three hundred seventeen dollars, after dipping as low as seventy-nine thousand eight hundred dollars during Asian trading hours. Ethereum sits around two thousand three hundred twenty-seven dollars, down about three percent on the day. XRP fell near one dollar and twenty-eight cents, and Solana slipped under one hundred and one dollars. BTSE's Jeff Mei noted that while the Fed probably won't move rates this week, the tone of Chair Kevin Warsh's guidance on December matters most, especially with oil near one hundred fourteen dollars a barrel and inflation expectations climbing. But the week's real flashpoint may be security, not macro. Electrum, one of Bitcoin's oldest wallets, patched a serious flaw on October twenty-fourth after malicious servers tricked users into signing fraudulent fee-bump transactions, redirecting funds to attackers. One victim lost coins on October eighteenth after a replace-by-fee attempt; attackers even matched the final four characters of real addresses to dodge detection. Users should upgrade to version four point eight point three immediately. Therefore, Electrum wasn't alone. The Polkadot ecosystem disclosed that its Fearless Wallet browser extension leaked private keys for nearly twenty months, from February twenty twenty-five through this past week, draining over seventeen thousand DOT from at least eight users. A July network upgrade that shortened unstaking from twenty-eight days to just one or two days made recovery far harder once funds moved. Meanwhile, India's CoinDCX confirmed a nearly sixteen million dollar loss after an internal sweeping failure left customer funds sitting in a wallet compromised back in twenty twenty-five. CEO Sumit Gupta initially called the reports a false alarm before the exchange admitted the theft, following pressure from on-chain investigator ZachXBT. CoinDCX says it will cover the loss in full. In the UK, Stand With Crypto reports over ten thousand complaints in just three months over banks blocking or limiting crypto transfers, with Lloyds, Barclays, and NatWest leading the list, undercutting Britain's stated ambition to become a crypto hub. Elsewhere, Galaxy Research finds that fifty-five percent of all mined Bitcoin, over eleven million coins, sits in wallets with no known owner, reinforcing that self-custody remains alive and well. And Elon Musk warned of a coming neocloud shakeout after SpaceX raised forty billion dollars in debt for GPUs, a warning CalPERS seems to be heeding, having trimmed its Magnificent Seven holdings by twenty-six percent this year. Before we go, here's your charge for the day: Your competition is still charging their phone while you're building the power plant. That's a wrap for today's edition of Chain Reaction by Capital Copilot. We hope you're feeling more informed and ready to navigate the cryptoverse. Until next time, keep your digital wallets ready!