Crypto Market Dips as BTC, ETH Slide; BNB, CAKE Defy Downtrend on DeFi Surge

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US government shutdown has halted SEC crypto regulation, freezing ETF approvals and dampening sentiment. JPMorgan projects global stablecoin adoption will drive up to $1.4 trillion in USD demand by 2027, reinforcing dollar dominance. The EU plans to centralize crypto oversight under ESMA, aiming to harmonize rules and boost institutional participation.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 2.09% to $122,006 and ETH falling 4.03% to $4,483. Most altcoins dropped, though BNB surged 8.62% to $1,312.48 on DeFi activity, CAKE rose 14.89% to $4.32 on CakePad launch, and DEXE gained 10.45% to $13.03. Risk-off flows and weak spot demand drove the downturn.

Today's Outlook

Key events today include the Reserve Bank of India launching a pilot for tokenized bank deposits using CBDC, Grayscale debuting the first U.S. spot crypto ETFs with staking rewards, and the Pipe Network TGE on Solana. These developments may influence market sentiment and sector rotation.

Fear and Greed Index

82.00% Annual Percentile

62 Greed

Total Crypto Market Cap

$4.18T

2.34%

Total Market Trading Volume

$235.20B

18.00%

Altcoin Season Index

8.33%

Quarterly Percentile

58 / 100

Total Futures Market Open Interest

3.48B

1.75%

Futures

1.09T

2.86%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Reserve Bank of New Zealand cut its benchmark rate by 50 basis points to 2.5%, exceeding expectations. This aggressive monetary easing is likely to boost liquidity and risk appetite, supporting DeFi activity and potentially increasing demand for high-beta crypto assets.

JPMorgan projects that global stablecoin adoption will significantly increase US dollar demand, with estimates of up to $1.4 trillion in additional USD demand by 2027. This trend reinforces the dollar's dominance in crypto markets and may drive further growth in USD-pegged stablecoins and related DeFi protocols.

The US Senate is scheduled to vote on two short-term funding bills to resolve the ongoing government shutdown. The outcome could impact short-term crypto market liquidity and investor sentiment, as prolonged shutdowns historically increase volatility and risk-off moves in digital assets.

The Bank of England is reconsidering proposed stablecoin holding limits for companies after industry pushback. Easing these restrictions could enhance stablecoin utility in the UK, potentially increasing GBP-based DeFi activity and cross-border crypto transactions.

Cryptocurrency Regulatory Trends

The US government shutdown has halted SEC work on crypto regulation, freezing ETF approvals and delaying new digital asset policy, which may dampen investor confidence and stall market innovation.

Plume Network received SEC approval as a registered transfer agent, enabling on-chain management of tokenized securities and shareholder records, signaling increased regulatory acceptance of blockchain in capital markets.

The European Union is preparing to transfer crypto oversight from national regulators to ESMA, aiming to harmonize rules and strengthen cross-border supervision, which could boost institutional participation in EU crypto markets.

Dubai's Virtual Assets Regulatory Authority fined 19 crypto firms for operating without licenses, ordering them to cease activities, highlighting the region's strict enforcement of compliance and its impact on service providers.

Amplify ETFs has filed for the first US stablecoin and tokenization equity ETFs, reflecting growing institutional interest in regulated crypto infrastructure and potentially expanding access for traditional investors.

PancakeSwap (CAKE): CAKE surged 15.2% in 24h with $1.13B trading volume, driven by CakePad launch for early token access and a 135% spike in user activity.

DeXe (DEXE): DEXE jumped 10.7% in 24h, reaching $13.03 with $46M volume, fueled by strong DAO governance participation and ecosystem partnerships.

BNB (BNB): BNB rose 8.3% in 24h to $1,313, with $11.5B volume, hitting a new all-time high amid increased DeFi activity and ongoing auto-burn supply reduction.

Smart Money Movements

Over 32,000 dormant Bitcoin, worth nearly $4 billion, were moved on-chain in the past 24 hours, marking the largest such transfer in 2025 and signaling major whale repositioning.

A Bitcoin whale deposited 3,000 BTC, valued at $363.92 million, to HyperLiquid and sold 960.57 BTC for $116 million USDC, while still holding 46,765 BTC worth $5.7 billion.

BlackRock acquired $969.95 million in Bitcoin, reinforcing institutional confidence and contributing to reduced exchange supply and increased price stability.

Grayscale staked an additional 272,000 ETH, valued at $1.21 billion, in its spot ETFs, bringing its total staked ETH to 304,000 and dominating the current staking queue.

Galaxy Digital transferred 1.913 million ASTER tokens, worth $3.98 million, to Binance, totaling 6.857 million ASTER ($14.16 million) moved since yesterday, with $118 million in ASTER still held on-chain.

Events to Watch

Oct 8 (Wed)

The Reserve Bank of India launches a pilot for tokenized bank deposits using CBDC; Grayscale debuts first U.S. spot crypto ETFs with staking rewards; Pipe Network (Permissionless Labs) TGE on Solana.

Oct 9 (Thu)

Movement (MOVE) unlocks 50M tokens ($5.68M); Kyros TGE on Solana; Axie Infinity unlocks 652,500 AXS for staking rewards.

Oct 10 (Fri)

U.S. CPI and Core CPI data for September released, key for Fed policy; Major token unlocks: CONX, SAND, AVAX, SOL, LINEA, BABY, HOME, OP, Babylon, with total value over $742M.

Oct 11 (Sat)

U.S. PPI and Core PPI data released, critical for inflation outlook; Aptos (APT) unlocks 11.3M tokens ($57.91M); UK GDP and Eurozone ECOFIN meetings.

Oct 12 (Sun)

Future Blockchain Summit x Fintech Surge, Expand North Star, and GITEX GLOBAL open in Dubai; Aethir (ATH) unlocks 1.37B tokens ($75M); Large token unlocks for TON, Avalanche, LayerZero.

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