Bitcoin Holds $122K as Zcash Surges 26% on Privacy Demand

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve is expected to cut rates at its October meeting, fueling risk appetite in crypto. The ongoing US government shutdown delays key economic data, increasing market volatility. The European Systemic Risk Board warns of cross-border stablecoin risks, raising regulatory focus in the EU.

Crypto Market

Bitcoin trades at $122,228 (+0.08%) and Ethereum at $4,477 (-0.34%), with BTC steady and ETH slightly lower. Zcash surged 26% on privacy coin demand, OKB rose 6% on exchange activity, and FLOKI gained 3.6% amid meme coin enthusiasm. Most altcoins show mixed trends, with privacy and exchange tokens outperforming.

Today's Outlook

No major token unlocks or protocol launches are scheduled for today. Market participants are closely watching for macroeconomic updates and regulatory developments, as these factors may drive volatility and sector rotation in the coming sessions.

Fear and Greed Index

92.00% Annual Percentile

59 Neutral

Total Crypto Market Cap

$4.17T

0.52%

Total Market Trading Volume

$117.71B

45.57%

Altcoin Season Index

8.33%

Quarterly Percentile

62 / 100

Total Futures Market Open Interest

3.22B

2.46%

Futures

1.17T

3.54%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve is expected to cut interest rates again at its October 29 meeting, potentially lowering the Federal Funds rate to 3.75%-4%. This anticipated monetary easing is driving increased risk appetite in crypto markets, supporting Bitcoin and altcoin rallies as lower rates typically boost liquidity and risk asset valuations.

The ongoing U.S. government shutdown has delayed the release of key economic data, including jobs and inflation reports, complicating the Fed's policy decisions. This data vacuum increases market uncertainty, leading to higher volatility in both traditional and crypto markets as investors reassess risk and portfolio allocations.

Federal Reserve Governor Stephen Miran has called for aggressive rate cuts despite data delays, arguing that current restrictive policy risks unnecessary economic slowdown. His stance has fueled debate within financial circles and is seen as supportive for crypto assets, which often benefit from looser monetary conditions.

India has announced a revision of its Consumer Price Index (CPI) methodology to better reflect the impact of free food distribution schemes. This adjustment could influence inflation readings and monetary policy, with potential effects on INR-denominated crypto trading and capital flows into digital assets.

The European Systemic Risk Board has issued a warning about cross-border stablecoin models, highlighting financial stability risks. This has increased market focus on euro-backed stablecoins and could impact DeFi liquidity and stablecoin trading volumes within the EU.

Cryptocurrency Regulatory Trends

Coinbase has applied for a National Trust Company Charter with the US OCC, aiming to expand regulated crypto payments and custody services nationwide. This move signals growing regulatory clarity and could boost institutional adoption.

Nigeria's Central Bank and SEC have announced a joint initiative to develop a comprehensive crypto regulatory framework, marking a major policy shift and potentially positioning Nigeria as a regional leader in digital asset regulation.

The US SEC's operations are limited due to a government shutdown, delaying spot crypto ETF approvals. This regulatory pause may temporarily impact market liquidity and investor sentiment.

Defiance Investments and REX-Osprey have filed for dozens of new leveraged and altcoin crypto ETFs, but SEC review is stalled by the shutdown. The filings reflect strong demand for regulated crypto investment products.

State regulators in the US have raised concerns that the proposed federal crypto market structure bill could weaken their ability to prosecute fraud, highlighting ongoing debates over jurisdiction and investor protection.

Zcash (ZEC): Zcash surged 26.4% in the past 24 hours, reaching $163.97 with $528M in trading volume, driven by renewed privacy coin demand and strong market momentum.

OKB (OKB): OKB rose 6.1% to $227.41, with 24h trading volume up 127% to $587M, fueled by increased activity on the OKX exchange and ecosystem utility expansion.

FLOKI (FLOKI): FLOKI gained 3.7% in 24 hours, supported by $544M in trading volume, as meme coin enthusiasm and community-driven campaigns boost investor interest.

Smart Money Movements

A crypto whale deposited $4 million USDC into Hyperliquid and purchased 58,778 HYPE tokens worth $2.89 million, signaling strong interest in HYPE.

Mid-sized Bitcoin holders increased their purchases as whale selling slowed, with on-chain data indicating a shift in market support and confidence.

In September, $342.73 million in dormant Bitcoin (2,803.62 BTC) was moved from wallets inactive for years, suggesting renewed activity among early holders.

Tokyo-listed Gumi Inc. acquired 80.35 BTC valued at $9.84 million and plans an additional $13 million crypto investment, reflecting growing Japanese corporate adoption.

BlackRock's Ethereum ETF ($ETHA) recorded a $204.75 million net inflow on October 3, with $1.5 billion in trading volume, highlighting robust institutional demand.

Events to Watch

Oct 7 (Tue)

The New York Fed will release 1-Year Inflation Expectations for September; US Consumer Credit and Trade Balance data for August will also be published.

Oct 8 (Wed)

FOMC Meeting Minutes for September will be released; RBNZ announces October interest rate decision; Germany's August Industrial Production data published; Electroneum to make an official announcement.

Oct 9 (Thu)

North American Blockchain Summit begins in Dallas, Texas; ECB Meeting Accounts released; IREN and Riot sponsor the event.

Oct 10 (Fri)

LINEA will unlock 1.08B tokens (6.57% of supply) at 11 AM UTC, potentially impacting market liquidity.

Oct 15 (Wed)

US Consumer Price Index (CPI) data for September will be released, a key indicator for inflation and monetary policy.

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