Bitcoin traded near $84,500 this week, with Ethereum and several other major coins moving alongside it. The asset briefly touched higher levels earlier in the week — reaching $87,000 — before settling back. The gains followed a rough September for crypto markets and built as traders grew more hopeful that the Federal Reserve would hold interest rates steady.

Comments from Federal Reserve officials reduced expectations for another near-term rate increase, a shift that helped boost demand for riskier assets. Crypto-linked stocks also moved higher, with shares of Strategy, Coinbase and Robin climbing alongside Bitcoin's price action. The week's developments spanned ETF flows, macro data, regulatory action and stablecoin infrastructure.

ETF Flows Turn Positive as Wall Street Raises Targets

U.S. spot Bitcoin ETFs saw money flow back in during the week. The funds pulled in about $2.4 billion in net inflows during the trading week ending September 25. The inflows reversed the funds' recent trajectory and helped push Bitcoin ETF flows for 2026 back into positive territory.

Since their January 2024 debut, spot Bitcoin ETFs have become a main channel for institutional exposure to Bitcoin, and weekly flow figures are widely tracked as a gauge of that demand.

Strategy, the largest corporate holder of Bitcoin, kept buying as well. The company purchased another 1,665 BTC, bringing its total holdings to 847,666 BTC.

Bitcoin's dominance, which measures its share of the total crypto market, moved close to 60% late in the week. That suggests investors still favored the largest cryptocurrency even as overall appetite for riskier assets improved.

Wall Street's outlook also brightened. Citigroup raised its 12-month Bitcoin price target from $82,000 to $113,000, pointing to stronger crypto activity and renewed ETF inflows. The revision positioned the bank among major financial institutions taking a more constructive view of digital assets. Citigroup also lifted its Ethereum forecast, from $2,240 to $3,028.

Soft Jobs Data Shapes the Fed's Next Move

The broader economy played into the week's crypto moves as well. U.S. employers added just 29,000 jobs in September, and unemployment rose to 4.2%. Weaker job growth reduces the odds that the Federal Reserve will need to raise interest rates aggressively, and lower rate expectations tend to support crypto prices by making riskier assets more attractive.

That said, the picture could shift quickly. Stronger-than-expected inflation data could change the rate outlook and put pressure on prices again.

Ethereum Lags Bitcoin's Recovery as MetaMask Incident Surfaces

Ethereum stayed in the spotlight this week, though its price gains trailed Bitcoin's. A security incident involving MetaMask's Ethereum validators drew attention after an attacker diverted staking rewards. MetaMask responded by starting precautionary validator exits. The amount of stolen rewards was small, estimated at around 0.36 ETH. Staking has been core to Ethereum's network since its 2022 move to proof-of-stake, which is why operational problems at validator services tend to draw close scrutiny. The episode added a fresh element of risk to the week's news flow.

SEC Proposes New Custody Framework for Advisers

U.S. regulation took a step forward. The SEC proposed a new framework for how registered investment advisers can custody cryptocurrencies. The proposal could allow advisers to self-custody certain digital assets when a suitable third-party custodian isn't available, though advisers would still need to meet security and expertise requirements. Custody has been one of the thorniest compliance questions in digital assets, since U.S. rules generally require advisers to keep client assets with qualified custodians, and applying that standard to crypto has been an open question for years.

Binance Faces Regulatory Pressure in Europe

Europe struck a more cautious tone. Regulators are examining whether Binance has continued serving European customers without proper authorization under the EU's MiCA rules — the bloc's landmark crypto rulebook, in full effect since the end of 2024, which requires crypto-asset service providers to be authorized to serve EU customers. Binance says some customers use its services under Europe's “reverse solicitation” exemption, a carve-out meant for services that a customer initiates, and regulators are now reviewing whether that exemption is being applied correctly. The review adds to the exchange's regulatory challenges in the region.

Tether Brings USDT Plans to Bitcoin as Blast Shuts Down

Stablecoins saw a new development as well. Tether announced plans to bring USDT functionality to Bitcoin through a project called Utexo. The plan would allow private USDT transfers, BTC-USDT swaps and Bitcoin-backed lending. USDT is the largest stablecoin by circulation, making the plan a notable bridge between Bitcoin's base layer and dollar-pegged tokens.

Not every project fared well. Ethereum Layer-2 network Blast announced that it is shutting down after assets on the network fell from more than $2 billion at their peak. The closure shows how tough competition among Layer-2 networks has become as activity consolidates around bigger platforms.

For now, Bitcoin's attempt to hold near $84,500 remains the key story heading into the new week, though high leverage and lingering regulatory questions mean volatility could stay elevated.

Source: CoinCentral