Bitcoin and Ethereum Slide as Fed Policy, Regulation Drive Volatility

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US and UK have launched a joint task force to harmonize crypto regulation, aiming to boost institutional confidence. The US Treasury is seeking public input on stablecoin policy under the GENIUS Act, signaling ongoing regulatory focus. Fiji's strict crypto ban and Australia's stablecoin license highlight diverging global regulatory approaches.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with Bitcoin down 1.8% to $112,514 and Ethereum falling 3.4% to $4,187, pressured by weak risk sentiment and ETF outflows. Altcoins were mixed; Mantle (MNT) surged 13.9% on BitDAO migration, while most others lagged. Market volatility was driven by macro uncertainty and institutional flows.

Today's Outlook

Key events today include the US PCE index release and a pivotal speech by Fed Chair Powell following the recent rate cut, both likely to impact market volatility and investor sentiment across crypto and traditional assets.

Fear and Greed Index

58.00% Annual Percentile

47 Neutral

Total Crypto Market Cap

$3.88T

2.19%

Total Market Trading Volume

$224.60B

95.71%

Altcoin Season Index

0.00%

Quarterly Percentile

63 / 100

Total Futures Market Open Interest

4.67B

19.16%

Futures

1.11T

23.45%

Perpetuals

II. Industry Updates

Macro-economic Policies

The US Federal Reserve cut its benchmark interest rate by 25 basis points to 4.00%-4.25%, signaling a shift toward monetary easing. This move has triggered a surge in gold prices and increased volatility in Bitcoin and DeFi markets as investors reassess risk and seek safe-haven assets.

China's central bank kept its one-year and five-year loan prime rates unchanged at 3.0% and 3.5% despite the Fed's rate cut, reflecting a cautious stance. The steady policy supports yuan stability but may limit short-term capital inflows into crypto assets from Asia.

The US Treasury opened a public consultation on stablecoin policy under the GENIUS Act, inviting input on innovation and consumer protection. While not a direct policy change, this signals ongoing US focus on digital asset frameworks, impacting market sentiment and stablecoin liquidity.

Recent US job and inflation data showed mixed signals, with unemployment at 4.3% and inflation at 2.6%. These macro indicators have led to increased volatility in BTC and altcoin prices as traders adjust to shifting expectations for further Fed rate cuts.

Gold reached a new all-time high above $3,700 per ounce following the Fed's rate cut, highlighting a shift in investor preference toward non-yielding safe-haven assets. This dynamic has contributed to capital rotation out of riskier crypto assets, increasing short-term volatility in DeFi and NFT markets.

Cryptocurrency Regulatory Trends

The US and UK have launched a joint task force to coordinate crypto regulation, aiming to harmonize digital asset laws and boost cross-border investment, which could enhance institutional confidence and market participation.

The US Treasury is seeking public comment on the implementation of the GENIUS Act, focusing on stablecoin regulation to encourage innovation while addressing consumer protection and financial stability, supporting further stablecoin adoption.

Australia's ASIC has granted its first financial services license for a stablecoin (AUDM), signaling regulatory readiness for broader digital currency use and potentially increasing institutional engagement in the Australian crypto market.

Fiji has enforced a strict ban on cryptocurrency services, prohibiting residents from buying or trading crypto with local funds, which restricts market access and may deter crypto-related investment in the region.

The UK Financial Conduct Authority has accelerated crypto firm registration approvals, cutting processing times and raising acceptance rates, which could attract more crypto businesses and foster a more competitive regulatory environment.

Mantle (MNT): Up 13.9% in 24h, Mantle surged to $1.74 with $589M volume, driven by strong ecosystem growth and BitDAO's 1:1 migration to MNT.

Aster (ASTER): Gained 9.1% in 24h, price hit $1.52 with $2.25B volume, boosted by APX-to-ASTER token conversion and new perpetual trading fee discounts.

Smart Money Movements

Metaplanet acquired 5,419 BTC for $632 million, raising its total holdings to 25,555 BTC and becoming the fifth-largest corporate Bitcoin holder.

Strategy (formerly MicroStrategy) purchased 850 BTC for $99.7 million at an average price of $117,344, bringing its total Bitcoin holdings to 639,835 BTC.

BlackRock-led Bitcoin ETFs recorded a net inflow of 1,949 BTC ($220.81 million) and Ethereum ETFs saw a net inflow of 25,795 ETH ($108.47 million) on September 22.

Bitmine increased its Ethereum holdings by 264,378 ETH, investing $110.61 million and bringing its total ETH reserves to 2,416,054 ETH ($10.1 billion).

A whale transferred 1,317 BTC worth $147.8 million from an unknown wallet to Coinbase Institutional, signaling significant institutional movement.

Events to Watch

Sep 23 (Tue)

US PCE index for August will be released; Fed Chair Powell to deliver a key speech on economic outlook after recent rate cut.

Sep 24 (Wed)

RootData × Tiger Research hosts 'Insights For Web3 Future' summit in Seoul during Korea Blockchain Week; GriffinAI (GAIN) TGE; Hedera mainnet upgrade to v0.65.

Sep 25 (Thu)

US Q2 GDP final data and jobless claims released; Plasma mainnet and token launch; Nansen to make a major announcement.

Sep 26 (Fri)

US Core PCE Price Index and PCE inflation data for August released; Canada and Japan to publish GDP and CPI data.

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