Volatility spiked this week as Bitcoin experienced its largest daily drop since the FTX collapse, falling 15.4% to $49,202 on Monday. Altcoins saw even greater declines, with Ethereum plunging 21.1% to $2,121. By week's end, both Bitcoin and Ethereum partially recovered, trading at $60,988 and $2,671, respectively.

This surge in volatility led to a significant increase in trading activity, with centralized exchanges reporting their highest daily spot trading volumes since May 19, 2021. Newly launched spot ETFs showed resilience despite the turmoil, with only $168 million in outflows, according to Bloomberg's Eric Balchunas.

In legal developments, Ripple Labs was ordered to pay $125 million in penalties by Judge Torres, causing Ripple's price to surge over 15%. A New York judge also approved a $12.7 billion settlement for FTX and Alameda Research, barring them from market activities. Additionally, Morgan Stanley is set to offer spot Bitcoin ETFs, marking a major milestone amid Bitcoin's volatile history.