Summary
gm, Bitcoin briefly reached a new all-time high of $124,457 before experiencing a sharp correction to around $119,000. This pullback was triggered by higher-than-expected U.S. Producer Price Index data and initial comments from Treasury Secretary Scott Bessent about the government not purchasing Bitcoin, which he later clarified by reaffirming commitment to "budget-neutral" approaches for the Strategic Bitcoin Reserve. Meanwhile, Ethereum ETFs have seen remarkable institutional interest, attracting $2.3 billion in inflows over three days, outpacing Bitcoin ETFs as ETH approaches its all-time high. In corporate developments, crypto exchange Bullish made a successful NYSE debut with shares surging 218% from their IPO price, prompting Cathie Wood's Ark Invest to acquire $172 million in shares.

News Headlines
📊 Crypto Market Reaches Record $4.2 Trillion as Altcoins Surge

  • The cryptocurrency market has hit a new record capitalization of $4.2 trillion, driven largely by significant gains in altcoins like Ethereum, Solana, and Cardano. Trading volume surged by 25.73% in a day, signaling strong investor activity.
  • While Bitcoin dominates at $120,000+, Ethereum is gaining momentum near its all-time high, with predictions of $5,000 this year. Solana is approaching $200, and Cardano is testing resistance at $0.90, suggesting a broader market shift toward alternative cryptocurrencies.

💳 Citigroup Exploring Crypto Custody Services for ETFs and Stablecoins

  • Citigroup is investigating cryptocurrency custody and payment services, primarily focusing on high-quality assets that underlie stablecoins and crypto-linked exchange-traded products including Bitcoin and Ethereum ETFs.
  • This move follows Citigroup's previous blockchain collaborations and reflects growing interest from traditional financial institutions in crypto services, encouraged by recent regulatory clarity from U.S. initiatives like the GENIUS Act.

🛍️ Swiss Grocery Giant Spar Launches Nationwide Crypto Payments

  • Global supermarket chain Spar is implementing stablecoin and cryptocurrency payment options across 300 Swiss locations, partnering with Binance Pay and DFX.swiss in what's being called Switzerland's first nationwide crypto payment rollout in retail.
  • The service is already available in 100 Spar stores with full deployment planned in coming months. Customers can pay using over 100 cryptocurrencies and stablecoins, with merchants potentially saving up to two-thirds on traditional card commission fees.

📱 MetaMask Planning to Launch New Stablecoin with Stripe Partnership

  • MetaMask is preparing to launch a new stablecoin named mmUSD in partnership with payment service Stripe, which will serve as the primary trading pair for various MetaMask services.
  • The move comes amid growing interest in stablecoins, with market projections suggesting expansion from $280 billion to $750 billion by the end of 2026, and follows MetaMask's recent collaboration with Aave to offer DeFi yield options.

📉 Bitcoin Drops After Treasury Secretary's Comments, Later Clarifies Position

  • Bitcoin fell below $119,000 after U.S. Treasury Secretary Scott Bessent initially stated the government would not be purchasing additional Bitcoin, causing a $55 billion market cap wipeout in just 40 minutes.
  • Bessent later clarified that the Treasury is still exploring "budget-neutral" methods to acquire Bitcoin for the Strategic Bitcoin Reserve, and confirmed the current reserve is valued between $15-20 billion from previously confiscated assets.

Market Metrics

Fundraising & VC
1. USD.AI (Series A, $13.4M) - GPU-collateralized stablecoin lending protocol
2. Mesh (Undisclosed, $9.5M) - Global crypto payments network
3. Bitlayer (Public Token Sale, $5M) - Bitcoin Layer 2 solution

Regulatory
💼 Traditional Finance Giants Hiring for Crypto Expansion

  • Major Wall Street players including Charles Schwab, Fidelity, and S&P Global are actively hiring for senior crypto positions as they expand into digital assets.
  • The hiring surge follows increased regulatory clarity in the US, with positions focusing on crypto trading, on-chain experiences, and risk management.

⏱️ SEC Extends Solana ETF Decision Deadline

  • The SEC has extended its decision deadline for Solana ETF proposals from Bitwise and 21Shares by 60 days, with a final decision now due by October 16.
  • This is the commission's last procedural extension, as discussions continue about Solana's regulatory status as either a security or a commodity.

🚫 US Treasury Sanctions Crypto Exchange Garantex Again

  • The US Treasury has redesignated crypto exchange Garantex Europe and sanctioned its successor Grinex for allegedly facilitating over $100 million in illicit transactions since 2019.
  • The sanctions also target the Russian ruble-backed stablecoin A7A5, highlighting continued regulatory scrutiny despite indications of easing crypto regulations under the Trump administration.

⚠️ FBI Warns of Fake Law Firms Targeting Crypto Scam Victims

  • The FBI has issued a warning about fictitious law firms targeting victims of cryptocurrency scams, posing as lawyers or government regulators who can help recover lost funds.
  • Red flags include requests for payment in cryptocurrency or gift cards, refusal to provide proof of legitimacy, and unsolicited contact claiming knowledge of previous fraudulent transactions.

🏛️ Wall Street and Consumer Groups Push for GENIUS Act Revisions

  • Banking groups and consumer advocates are urging revisions to the GENIUS Act, seeking removal of provisions that could give state-chartered, uninsured institutions competitive advantages.
  • The coalition is concerned about regulatory arbitrage and loopholes allowing stablecoin affiliates to offer interest, potentially draining deposits from traditional banks.

Technical Analysis
Bitcoin - Bitcoin is in a rising trend channel in the short term. This shows that investors over time have bought the currency at higher prices and indicates good development for the currency. The currency has met the objective at 122416 after a break of the rectangle formation. The price has now fallen, but the formation indicates further rise. The currency has broken down through support at points 120700. This predicts a further decline. In case of positive reactions, there will now be resistance at points 120700. Negative volume balance shows that volume is higher on days with falling prices than days with rising prices. This indicates decreasing optimism among investors. The RSI curve shows a rising trend, which supports the positive trend. The currency is overall assessed as technically neutral for the short term.

Ethereum - Ethereum is in a rising trend channel in the short term. Rising trends indicate that the currency experiences positive development and that buy interest among investors is increasing. There is no resistance in the price chart and further rise is indicated. In case of a negative reaction, the currency has support at approximately 3870 points. RSI is above 70 after a good price increase the past weeks. The currency has strong positive momentum and further increase is indicated. However, particularly for big stocks, high RSI may be a sign that the stock is overbought and that there is a chance of a reaction downwards. The currency is overall assessed as technically positive for the short term.