Market Movement:

  • Bitcoin (BTC) surged to $113,000, its highest since August 28, representing a significant rebound from recent lows.
  • BTC's market dominance increased to nearly 59%, up from 57.5%, indicating a shift of capital into Bitcoin amidst broader market activity.
  • Ethereum (ETH) rose by 1% in the past 24 hours, while Solana declined by 1.5%, reflecting sector rotation and mixed momentum.

Key Events:

  • Justin Sun's WLFI address was blacklisted with 595 million tokens valued at approximately $107 million, following outbound transactions including a $9 million transfer.
  • WLFI's protocol linked to Donald Trump faced restrictions, impacting investor confidence and token liquidity.

Trading Signals:

  • $3.28 billion worth of BTC options expired at 8:00 UTC, possibly influencing the recent price bounce via max pain theory.
  • Total crypto market cap declined marginally by 0.3%, with Bitcoin down by 0.5%, indicating cautious trading sentiment.
  • Whale activity appears to be shifting, with renewed inflows into BTC as evidenced by the rise in dominance and price.

Narrative Shifts:

  • The U.S. SEC's increased focus on crypto regulation, including potential rule proposals, signals a tightening regulatory environment, with the agency prioritizing crypto asset rules.
  • The announcement of Tempo, a layer-1 blockchain for stablecoins and payments, highlights a growing institutional interest in infrastructure development.
  • Sector rotation from ETH into BTC and the emergence of new blockchain projects suggest evolving market themes toward infrastructure and regulatory clarity.

Risk Alerts:

  • The expiration of $3.28 billion in BTC options and max pain theory suggest potential volatility around options expiry.
  • Malicious activity involving Ethereum smart contracts and poisoned code libraries pose cybersecurity threats, especially to open-source projects.
  • Regulatory risks remain elevated as the SEC intensifies efforts, potentially impacting market stability and compliance costs.

Opportunities:

  • The bullish technical signals and recent price high of $113K suggest potential upside for Bitcoin if momentum sustains.
  • The development of Tempo and increased institutional interest in stablecoins and payments infrastructure point to growth opportunities in blockchain-based payment solutions.
  • Oversold tokens like XRP, Pi Coin, and Dogecoin show potential for rebounds, with market sentiment turning more bullish in the short term.

Flows & Positioning

Bitcoin Surges to $113K Amid Strong ETF Inflows

Bitcoin's price has surged to $113,000, marking its highest level since August 28, as the cryptocurrency prepares for the upcoming U.S. jobs report. This rally has been accompanied by a notable increase in Bitcoin's market dominance, which has risen to nearly 59%, up from a low of 57.5%, indicating renewed capital inflows into BTC.

Additionally, Bitcoin ETFs have experienced significant inflows, with a total of $633 million over two consecutive days, the strongest performance since early August. BlackRock's iShares Bitcoin Trust led the charge with $289.8 million in inflows, suggesting a robust demand for Bitcoin investment products as market sentiment begins to shift.

Institutional Activity: Figma's $91M Bitcoin Holdings

Figma has disclosed that it holds approximately $91 million in Bitcoin as part of its broader $1.6 billion cash position. This move is part of a conservative strategy rather than a speculative play, as emphasized by CEO Dylan Field, who stated they are not trying to emulate other firms heavily invested in Bitcoin.

Moreover, public companies now collectively hold over 1 million BTC, valued at around $110 billion. Strategy (MSTR) remains the largest holder with 636,505 BTC, accounting for approximately 63.6% of the total corporate holdings, reflecting a growing trend of institutional adoption of Bitcoin as a treasury asset.

Market Movements: Bitcoin Faces Potential Pullback

Despite the recent surge, Bitcoin has shown signs of weakness, slipping below $110,000 as analysts warn of a possible deeper pullback. The cryptocurrency fell 2.2% over 24 hours to $109,500, erasing half of the gains made earlier in the week, as concerns about market sentiment grow.

Whale activity has also been notable, with a significant Bitcoin address moving over $52 million worth of BTC after 13 years of dormancy. This movement, along with the recent expiration of $4.6 billion in Bitcoin options, is contributing to heightened volatility in the market.

Market Implications: Caution Amid Seasonal Trends

The current market dynamics suggest a cautious approach as September has historically been a weak month for Bitcoin and the broader crypto market. Analysts are closely monitoring ETF inflows and whale movements, which could dictate short-term price action.

With the recent uptick in institutional interest and Bitcoin's price fluctuations, traders are advised to remain vigilant. The interplay between ETF flows and market sentiment will be crucial in determining whether Bitcoin can sustain its recent gains or if a correction is imminent.

Corporate & Capital Markets

American Bitcoin Shares Fall Below IPO Price After 15% Plunge

Shares of bitcoin miner American Bitcoin (ABTC) have dropped below its initial IPO price after falling 15% on Thursday, the day after its debut on the Nasdaq. ABTC was trading at $6.83 a share, down from its IPO price of $6.90. The company, which is 80% owned by Hut 8 and 20% by Donald Trump Jr. and Eric Trump, opened for trading on Wednesday after completing its merger with Gryphon Digital Mining (GRYP). On the same day, the company filed for an at-the-market equity raise of up to $2.1 billion, with which it plans to continue building its bitcoin holdings.

Shares rose to a high of $14.65 during U.S. morning hours before falling sharply in the afternoon. Other miners, including Marathon Digital (MARA) and Riot Platforms (RIOT), are also trading lower on the day. Similarly, Bitcoin (BTC) slipped 2% in the past 24 hours, moving in step with the broader crypto market, while U.S. stock indexes like the Nasdaq and S&P 500 are trading higher. American Bitcoin, which holds about 2,443 bitcoin worth $66 million, is navigating a challenging market environment.

WLFI Token Market Cap Adjusts Following High-Profile Launch

WLFI, the Trump-affiliated token from World Liberty Financial, began trading above $0.30, briefly lifting its implied valuation beyond $30 billion. That initial enthusiasm gave way to sharp selling, and the market cap has since adjusted closer to $4.3 billion. The project has responded with supply management measures, including a buyback-and-burn program funded by liquidity fees collected from trading activities.

Public Companies Surpass 1 Million Bitcoin Holdings

Public companies’ Bitcoin holdings surpassed 1 million BTC, with Michael Saylor’s Strategy maintaining a massive lead amid a wave of entrants. More than 100 public companies currently hold BTC, reflecting the growing interest in cryptocurrency as a treasury asset.

Brex Plans European Expansion Amid IPO Aspirations

The $12 billion fintech group Brex is seeking expansion in Europe, signaling resilience among start-ups launched in a period of ultra-low interest rates. This move comes as the company prepares for a potential IPO.

Kraken Expands Trading Infrastructure with Breakout Acquisition

Kraken has expanded its trading infrastructure through the acquisition of Breakout, following its $1.5 billion NinjaTrader acquisition in May 2025. This strategic move enhances Kraken's capabilities in proprietary trading.

Thumzup Projects $100M Revenue from Dogecoin Mining

Thumzup has executed agreements to acquire DogeHash’s 3,500 Dogecoin miners, projecting up to $103 million in annual revenue if DOGE hits $1. This ambitious plan highlights the company's confidence in the future of Dogecoin mining.

CFTC's Kristin Johnson Exits with Warning on Prediction Markets

Outgoing CFTC Commissioner Kristin Johnson warned that prediction markets have "too few guardrails" while capturing unprecedented retail funds. Her farewell speech coincided with the CFTC approving Polymarket's U.S. return through its $112 million QCX acquisition.

Ecosystem Movers

Ethereum Staking Confidence Grows

The Ethereum staking queue has surged to $3.7 billion, marking a two-year high that signals increasing confidence among investors in the Ethereum ecosystem. This uptick in staking activity is attributed to a supply squeeze and the ongoing trend of restaking, which is creating bullish pressure on Ethereum's price. As Ethereum continues to lead the altcoin market, this surge in staking could further enhance its position and attract more investors looking for yield opportunities in a volatile market environment.

Market Movements and Predictions

Despite a recent minor decline in the overall crypto market capitalization by 0.3%, Ethereum has shown resilience with a 1% increase in price. In contrast, Bitcoin has faced pressure, recently dropping to around $110,000, with predictions suggesting a potential fall to $108,000 as investors shift towards safer assets like bonds and gold. Meanwhile, Google’s AI Gemini has forecasted a bullish long-term outlook for major cryptocurrencies, including XRP and Solana, indicating that despite current market volatility, there is optimism for recovery by the end of 2025.

Bitcoin Dominance and Altcoin Sentiment

Bitcoin's dominance in the market is showing signs of revival, raising concerns about a potential altcoin sell-off. This resurgence comes after a period of declining dominance, which had fueled optimism among altcoin investors. Analysts remain divided on the implications of this shift, as it could either signal a return to Bitcoin's supremacy or create opportunities for altcoins to recover. The Crypto Fear and Greed Index currently sits at 51, indicating a neutral market sentiment, which may influence trading strategies moving forward.

On-Chain & Network

Etherscan Expands to Sei Blockchain with Seiscan Explorer

Etherscan has launched a new tool called Seiscan, specifically designed for the Sei blockchain, which is EVM-compatible. This expansion allows users to track on-chain activity similarly to how they would on Ethereum. Sei's ecosystem is rapidly growing, with total value locked (TVL) increasing from just over $5 million at the start of 2024 to approximately $560 million today. The Sei network is currently processing around 4.4 million transactions per day, demonstrating significant activity and user engagement.

Fireblocks Launches Stablecoin Payments Network with Major Partnerships

Fireblocks has introduced a new payments network aimed at enhancing the efficiency of stablecoin transactions. This network integrates over 40 participants, including notable firms like Circle, which issues USDC, and Bridge. The initiative is designed to streamline how financial institutions and crypto firms transfer stablecoins, addressing the current fragmentation in payment systems. Fireblocks claims that the network facilitates over $200 billion in stablecoin payments monthly, highlighting the growing demand and usage of stablecoins in the financial ecosystem.

DeFi Development Corp Expands Solana Holdings Significantly

DeFi Development Corp has increased its Solana (SOL) holdings by acquiring an additional 196,141 SOL, bringing its total to over 2 million SOL, valued at approximately $412 million. This acquisition was funded through a $5 billion equity line, of which only a small fraction has been utilized so far. Despite the significant accumulation of assets, the company's shares have seen a notable decline of 57% from their peak, although they remain up 1,710% year-to-date.

Justin Sun's Wallet Blacklisted by World Liberty Financial

World Liberty Financial has blacklisted a wallet associated with Justin Sun, freezing 540 million unlocked WLFI tokens. This action was taken following several outbound transactions from the wallet, including a notable $9 million transaction. The WLFI token has experienced a 19% drop in value, now trading at approximately $0.18, reflecting a significant decline from its launch price above $0.33. Sun has publicly requested the unfreezing of his tokens, emphasizing the importance of token rights and governance.

Macro & Policy

U.S. SEC Prioritizes Crypto Regulation Under New Leadership

U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins has outlined a comprehensive agenda focused on cryptocurrency regulation. This includes potential rule proposals aimed at clarifying the regulatory framework for crypto assets, which Atkins describes as a "key priority" of his chairmanship. The agenda emphasizes the need for clear guidelines regarding the issuance, custody, and trading of crypto assets, while also aiming to deter illegal activities within the sector. This initiative marks a significant shift in the SEC's approach to digital assets, reflecting a broader commitment to establishing a more structured regulatory environment for the crypto market.

Russia Plans to Lower Barriers for Personal Crypto Trading

The Russian Finance Ministry is considering reducing the stringent income and wealth requirements for personal crypto trading. Currently, individuals must meet standards of 100 million rubles (approximately $1.23 million) in securities and deposits or have an annual income of 50 million rubles (around $615,753). This move aims to broaden participation in a Central Bank-supervised pilot program, which is intended to test potential permanent regulations for crypto trading in Russia. The discussions were confirmed during the Eastern Economic Forum held on September 3, 2023.

Market Impact of Ripple's SEC Case Resolution

The legal battle between the SEC and Ripple has concluded, with a judge ruling in favor of Ripple regarding the sales of XRP on public exchanges, which did not violate securities laws. This ruling, issued in August 2023, has significant implications for the broader crypto market, as it sets a precedent for how similar cases may be handled in the future. The XRP community, known as the "XRP Army," played a notable role in influencing the case outcome, as thousands of affidavits were submitted to the court, contributing to the favorable ruling for Ripple.

Security & Incidents

Bunni Cites Smart Contract Rounding Error for $8.4 Million Flash Loan Exploit

The $8.4 million has been funneled through Tornado Cash, while Bunni offers 10% of the stolen funds if the attacker returns the remainder.

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