Bitcoin traded steadily near $84,500 this week, with Ethereum and other leading cryptocurrencies following similar patterns. The consistent momentum built after a challenging period in September, driven by increasing expectations that the Federal Reserve will keep interest rates unchanged. This sentiment provided broader support for digital assets and signaled revived risk appetite in financial markets.
Fed signals steady policy, boosts crypto sentiment
As the week progressed, Bitcoin briefly touched higher price points before easing back. Remarks from Federal Reserve policymakers reduced market expectations for immediate interest rate hikes, which encouraged greater flows into higher-risk investments, including cryptocurrencies.
Securities connected to the digital asset sector also advanced. Stocks such as those from MicroStrategy, Coinbase, and Robinhood tracked Bitcoin’s upward movement, reflecting stronger confidence in cryptocurrencies among investors.
ETF inflows return, Wall Street adjusts forecasts
Spot Bitcoin exchange-traded funds in the United States recorded a new wave of capital inflows, collecting approximately $2.4 billion in net deposits for the latest full trading week. The renewed investments reversed earlier net outflows, turning total 2026 ETF capital flows for Bitcoin positive once again.
MicroStrategy, a major US-based business intelligence firm known for its sizable Bitcoin holdings, acquired an additional 1,665 BTC. The company’s total Bitcoin reserve grew to 847,666 BTC, further cementing its position as the world’s largest corporate holder of Bitcoin.
Bitcoin’s market dominance, or its share of overall cryptocurrency market value, neared 60% by week’s end. This uptick suggests investors retained a preference for the original cryptocurrency even amid a generally strong appetite for risk assets.
Citigroup, a leading US financial group, increased its 12-month Bitcoin price forecast from $82,000 to $113,000, highlighting greater market participation and rising ETF inflows. Citigroup also revised its target for Ethereum, raising its estimate from $2,240 to $3,028.
Citigroup analysts attributed their upgraded Bitcoin target to higher investor engagement and robust capital entering US-based spot Bitcoin ETFs, with momentum likely to carry forward medium term.
US jobs data, inflation, and Fed policy outlook
Macroeconomic data shaped digital currency movements throughout the week. US employers added only 29,000 jobs in September, while the unemployment rate rose to 4.2%, indicating a cooler labor market.
Slower employment growth reduces the likelihood of sharp Federal Reserve interest rate increases. Historically, diminished rate hike expectations enhance the appeal of speculative assets such as cryptocurrencies. Still, analysts warned that if inflation data exceeds forecasts, it could prompt the Fed to reconsider its policy direction, leading to renewed pressure on digital assets.
Ethereum lags Bitcoin, MetaMask security breach draws scrutiny
Ethereum underperformed Bitcoin this week, falling behind in price appreciation. A security breach impacting MetaMask’s Ethereum validator services brought additional attention, after unauthorized parties reportedly redirected staking rewards. In response, MetaMask initiated withdrawal procedures for affected validators. The lost staking compensation totaled just over 0.36 ETH, which the company emphasized was a small fraction of managed funds.
Mini dictionary: MetaMask, a widely-used Ethereum wallet and dApp browser, enables users to manage, stake, and interact with crypto assets and decentralized applications directly through browser plugins or mobile apps.
US and EU regulators ramp up oversight
In regulatory developments, the US Securities and Exchange Commission (SEC) proposed new rules for how registered investment advisers can store and safeguard cryptocurrency on behalf of clients. The proposed framework would permit advisers to hold some digital assets directly if no qualified third-party custodian is available, provided they meet strict security and technical standards.
European regulators increased scrutiny on Binance, the global cryptocurrency exchange, over its compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations. Authorities are investigating whether Binance continues servicing European users without the required authorization. Binance stated that it relies on the region’s “reverse solicitation” exception for such cases, while regulators review whether this exemption is being properly applied.
The SEC’s latest proposal seeks to ensure that investment advisers follow robust custody standards when managing digital assets, potentially granting more direct custody options if strong security protocols are met.
Mini dictionary: MiCA (Markets in Crypto-Assets Regulation) is the European Union’s framework for regulating digital asset services and providers, set to introduce uniform rules for transparency, licensure, and consumer protection across the EU.
Tether eyes Bitcoin integration, Blast Layer-2 shuts down
The stablecoin sector also drew headlines. Tether, issuer of the leading US dollar-pegged stablecoin USDT, announced plans to integrate USDT functionality into the Bitcoin network through the Utexo initiative. The project will enable confidential USDT transfers, facilitate BTC-USDT swaps, and introduce Bitcoin-backed lending options.
Meanwhile, Ethereum-based Layer-2 scaling protocol Blast declared it would end operations after its network assets dropped from a peak above $2 billion. The shutdown marks ongoing competitive pressures among Layer-2 platforms as user activity consolidates on more established solutions.
| Project | Main Development | Peak Asset Value |
|---|---|---|
| Blast (Layer-2) | Announced network shutdown | Over $2 billion |
| Tether (USDT) | Launching Bitcoin integration via Utexo | Not disclosed |
As Bitcoin attempts to hold the $84,500 level, high leverage and ongoing regulatory changes are expected to keep price volatility elevated into the coming week.
