Market highlights
- Bitcoin declined below US$110,000 ahead of the US$18 billion September 26 options expiry.
- SharpLink Gaming to tokenise its U.S. SEC-registered stock on Ethereum.
- GSR filed to launch an ETF that tracks the performance of crypto treasury companies.
- U.S. SEC announced that a crypto “innovation exemption” will be enacted this year.
- Swift is working on a blockchain-based ledger for real-time cross-border payments.
- The CFTC launched an initiative to permit tokenised collateral in derivatives markets.
Markets Overview
The recent strength across TradFi risk assets dissipated this week. Speaking at the Greater Providence Chamber of Commerce on September 23, Fed Chair Powell said the central bank is in a “challenging situation” as it tries to balance its dual mandate of keeping inflation and unemployment within the target ranges. August’s core personal consumption expenditures index came in at an annualised rate of 2.7% for August (above the Fed’s 2% target), while recent weakness in the labour market looks to have subsided.
Powell’s comments, plus strong economic data, led to a sell-off in risk assets as the Fed’s rate-cut trajectory became less clear, though a 25-basis-point cut on October 29 still stands at a 90% probability. Key data from the U.S. suggested that the economy may be expanding, with Q2 GDP revised higher to 3.8%, the flash manufacturing PMI coming in at 52, and unemployment claims coming in 15,000 below forecast.
Geopolitical uncertainty is likely adding to downward pressure on risk assets. President Trump introduced new tariffs: 50% on kitchen cabinets, 30% on upholstered furniture, 25% on trucks, and 100% on branded pharmaceuticals. Further, the risk of a U.S. Government shutdown and Russian strikes on Kyiv are contributing to the instability. Congress has until midnight on September 30 to pass a full appropriations bill. If it fails, all non-essential functions will shut down, which could delay the release of Friday’s non-farm employment change for August. A shutdown could cause volatility for risk assets as markets seek confirmation of where U.S. interest rates will head throughout Q4 and into 2026.
Weekly performance: S&P 500 -0.3%, Dow Jones -0.2%, Nasdaq -0.3%.
Looking ahead:
- Reserve Bank of Australia rate decision – September 30
- U.S. ISM manufacturing PMI – October 1
- U.S. non-farm employment change – October 3
Crypto Market Sector Performance
Sector growth was subdued this week as the broader crypto market sold off due to macroeconomic uncertainty and crypto-specific sell pressure, including the September 26 options expiry. Over US$6 billion of leveraged crypto positions were liquidated throughout the recent sell-off. The start of the new week saw some cryptocurrencies make minor gains as the recent sell pressure appears to be subsiding.
Biggest gainer
- Bridge: LayerZero (+19.9%) gained on buying back 5% of ZRO token supply from early investors and the finalisation of its acquisition of Stargate Finance. The acquisition includes a buyback mechanism that will be funded by Stargate revenue. Stargate Finance (STG) gained 19.3% on the week.
- Staking services: EigenCloud (-9.7%) declined following the previous week’s rally of almost 20%. The weakness is presumably due to a US$68.5 million token unlock, which equates to 13.7% of its total supply.
Bitcoin (BTC)
- Opened the week at US$115,282 and sold off to a low of US$108,645 as leveraged positions saw over US$6 billion liquidated across the crypto market, and the September 26 options expiry caused volatility (+1.2% 7D).
- The new week saw BTC gain almost 2% on Monday, September 28, as recent sell pressure subsided.
- BTC dominance hovered between 57.9% and 59.2% this week.
- Bitcoin investment products saw US$719 million of outflows this week. Short bitcoin products didn’t see an uptick in inflows, suggesting that weak sentiment is temporary.
A volatile week for crypto saw bitcoin sell off, amid over US$6 billion in leveraged positions being liquidated and a record US$18 billion bitcoin options expiry on Friday, September 26. Bitcoin declined to US$110,000 ahead of the options expiry, which was the max pain point for options traders. BTC’s gains to start the new week suggest the recent sell pressure may have subsided.
The “massive” bitcoin news teased last week was announced on September 23. Former California Assembly majority leader Ian Calderon vowed to put bitcoin on the state’s balance sheet and accept crypto payments for state programs as part of his bid for governor. California’s gubernatorial election is on November 3, 2026.
In bitcoin buying news:
- Jiuzi Holdings (JZXN), a Chinese electric vehicle charging firm, announced that it will deploy US$1 billion of its capital to establish a digital asset corporate treasury, including bitcoin, Ethereum and BNB. JZXN shares gained 10% on the announcement.
- Strategy acquired 196 BTC, bringing its total holdings to 640,031 BTC at an average purchase price of US$73,983 per bitcoin.
Past performance is not a reliable indicator of future results.
Ethereum (ETH)
- Opened the week at US$4,447 and declined to a low of US$3,825 on September 25 as crypto liquidations and the impending September options expiry caused selling pressure. The new week saw ETH regain some strength, gaining over 2% on Monday, September 29 (+0.8% 7D).
- Ethereum dominance declined from 13.6% to 12.6% before recovering slightly throughout the weekend to around 13%.
- Ethereum-focused funds saw outflows of US$409 million this week.
Nasdaq-listed Ethereum treasury firm, SharpLink Gaming, will tokenise its U.S. Securities and Exchange Commission (SEC)-registered stock (SBET) on Ethereum via Superstate’s Opening Bell platform. Shareholders can hold tokenised shares in self-custodied wallets while maintaining legal equivalence to traditional equity.
FalconX launched Ethereum staking rate forwards, tied to the Treehouse Ethereum Staking Rate (TESR). These derivatives enable institutions to hedge or speculate on ETH staking yields, serving as the first structured rate instrument to expand the product offering in crypto’s fixed-income space.
In Ethereum buying news:
- BitMine bought more ETH last week, bringing its total holdings to over 2.6 million ETH, worth over US$11 billion and equating to over 2% of ETH supply.
Past performance is not a reliable indicator of future results.
Altcoins
The altcoin season index remained below 75 last week as selling pressure caused a pullback across most crypto assets. A handful of cryptocurrencies made gains of over 20%, while the remainder of the market hovered between losses of around 13% and gains of below 19% as the recent sell-off subsided throughout the weekend.
Perp DEX competition heats up
- Synthetix Network (SNX) grew by 80% on the announcement that it will launch its perpetual decentralised exchange (DEX) on Ethereum in Q4. The launch will include a US$1 million trading competition as investor interest in DEXs grows on the back of Hyperliquid’s rapid growth in recent months.
- Aster (ASTER) gained 21.5% as investor interest in BNB Chain perpetual DEXs continued to grow. Aster’s 24-hour perp trading volume also surpassed Hyperliquid’s volume on September 23, growing to US$21.6 billion, compared to Hyperliquid’s US$10.7 billion.
DeFi decline
- Orion (ORN) declined by 25.4%. The UAE-based brokerage presumably saw losses as traders and investors liquidated their positions in the recent sell-off.
Crypto ETF News
Digital asset investment products experienced outflows of US$812 million this week, as expectations for a further two U.S. rate cuts in 2025 declined following stronger-than-forecast employment and GDP data.
The outliers were Solana and XRP, which saw inflows of US$291 million and US$93 million, respectively, presumably on anticipation of U.S. ETF launches.
Crypto trading firm GSR filed with the U.S. SEC to list an exchange-traded fund (ETF) that tracks the performance of companies that hold crypto in their corporate treasuries. The GSR Digital Asset Treasury Companies ETF will invest 80% of its capital in these companies. GSR also applied to list four other ETFs this week: the GSR Ethereum Staking Opportunity, the GSR Crypto StakingMax, the GSR Crypto Core3, and the GSR Ethereum YieldEdge.
Other crypto news
- U.S. SEC Chair Paul Atkins announced that a crypto “innovation exemption” will be enacted this year. The exemption would ease rules for initial coin offerings, airdrops and network rewards in an effort to make it easier for crypto firms to innovate in the U.S. It’s part of the agency’s Project Crypto, which was announced in July.
- Swift is developing its own blockchain to modernise cross-border payments, partnering with over 30 major banks, including UBS, BBVA, BNY, and HSBC, as well as over 11,500 financial institutions and blockchain firm Consensys. The system will support tokenised assets and smart contracts, aiming for instant, transparent, and 24/7 cross-border transactions.
- The Commodity Futures Trading Commission (CFTC) launched an initiative to permit tokenised collateral, such as stablecoins, in derivatives markets. This move aims to modernise collateral management, enhance capital efficiency, and accelerate U.S. economic growth. It follows the U.S. SEC’s and CFTC’s joint statement earlier this month, which proposes a “24/7 markets” policy, as regulators seek to innovate in financial markets.
- Circle is considering reversible transactions for its USDC stablecoin. The initiative aims to attract traditional finance by enabling limited rollbacks in cases of fraud or dispute, while preserving settlement finality in normal use. Circle President Heath Tarbert said that reversibility could strengthen institutional adoption without undermining blockchain integrity. In other news, Cloudflare is launching the NET dollar, a U.S. dollar-backed stablecoin to reward content creators, monetise APIs and enable programmable actions by AI agents.
- Franklin Templeton is expanding its Benji tokenisation platform to BNB Chain to leverage its low fees and fast settlement. The move brings the asset manager’s on-chain investment products into the BNB ecosystem, aiming to reach more investors via compliant tokenised offerings. BNB reached a new all-time high of US$1,080 on September 21.
- Tether Holdings is aiming to raise up to US$20 billion in a private placement, potentially valuing the company at US$500 billion. This valuation would position Tether’s market cap alongside firms like OpenAI and SpaceX. The company plans to offer an approximate 3% stake in the deal.
- Ohio’s State Board of Deposit approved a vendor to process crypto payments for state fees and services. The decision follows months of legislative efforts initiated by Secretary of State Frank LaRose and Treasurer Robert Sprague to modernise the state’s public finance. It follows Ohio’s House of Representatives advancing the Blockchain Basics Act, which prohibits local governments from banning digital asset use, and House Bill 18, which, if passed, would create a strategic crypto reserve funded by the state’s investment earnings.
- The Australian Government released a draft bill proposing to regulate crypto platforms under existing financial services regulations. Operators of “digital asset platforms” and “tokenised custody platforms” would need an Australian Financial Services Licence (AFSL), with obligations around custody, dispute resolution, and penalties up to AUD$16.5 million.
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