Crypto markets recorded a difficult week between October 5 and October 9, with Bitcoin and Ethereum both losing ground even as several companies announced new projects and partnerships. The declines came despite a steady stream of corporate and protocol announcements, and against a backdrop of regulatory shifts in Washington, where officials opened a new federal trading framework for comment and withdrew two older wallet proposals.

Bitcoin and Ethereum Slide as ETF Withdrawals Grow

Bitcoin traded above $87,000 early in the week, but by Thursday, October 8, the asset had fallen to roughly $80,400. It climbed back to about $82,500 on Friday, though it remained well below its recent highs.

Rising oil prices played a role in the drop. Tensions involving Iran pushed oil costs higher, unnerving investors and weighing on riskier assets such as crypto. Higher US Treasury yields added further pressure, with traders increasingly expecting the Federal Reserve to keep interest rates tight for longer — a shift that lifts the returns available on cash-like instruments and can dull appetite for volatile holdings.

Sentiment picked up slightly after President Donald Trump said the United States would not strike Iran before the November midterm elections. Even so, the damage from earlier in the week lingered.

The selloff caused heavy liquidations in crypto derivatives markets. About $1.19 billion in leveraged positions were wiped out in the 24 hours leading into Friday, with Ether accounting for roughly $356 million of that total and Bitcoin making up about $298 million.

Fund flows told a similar story. US spot Bitcoin ETFs lost a net $678.9 million between October 5 and 9, while spot Ether ETFs shed another $542.2 million over the same stretch. Combined, the two asset classes recorded roughly $1.22 billion in weekly outflows, according to data from Farside Investors. These funds hold Bitcoin or Ether directly and trade on US exchanges, and their weekly net totals are widely tracked as a gauge of how much money is moving into or out of the sector through regulated vehicles.

Ethereum traded near $2,500 during the downturn, while Solana, XRP and other major altcoins also lost ground alongside the two largest cryptocurrencies.

US Regulators Shift Their Approach to Crypto Oversight

On October 5, the US Treasury's Financial Crimes Enforcement Network (FinCEN) withdrew two proposed rules, both of which involved reporting requirements tied to self-custody wallets and crypto mixing services. Self-custody wallets let users hold digital assets directly rather than through an exchange or custodian.

The Commodity Futures Trading Commission moved in a different direction, opening a public comment period on a new federal framework for leveraged retail crypto trading — a step that lets companies and individuals submit feedback before any framework is finalized. The plan could create a nationally regulated category of crypto trading platforms. Broader rules for the sector, however, still depend on legislation that has not yet passed.

OKX, Samsung and Ethereum Push Forward With New Projects

Crypto exchange OKX announced new financial backing from stablecoin issuer Circle, payments company Ripple, trading firm Qube Research & Technologies and Standard Chartered's venture arm SC Ventures. The company said the deal valued its business at $25 billion before the new capital came in.

Samsung said it will add USDC — the dollar-backed stablecoin issued by Circle — directly into Samsung Wallet, with the feature reaching eligible US Galaxy smartphone users later this month. Around 82 million eligible devices could gain access to cross-border crypto payments, and users will not need a separate crypto app to send the funds.

Ethereum's Glamsterdam upgrade reached its scheduled test on the Sepolia testnet on October 6, marking another step toward the upgrade's eventual rollout on the main network. Testnets are parallel networks where proposed protocol changes are deployed and checked before mainnet activation.

Sui revealed more than $500 million in funding commitments for Hashi, a new Bitcoin-backed finance platform that is working toward a phased mainnet launch.

Hardware wallet maker Ledger, whose devices keep users' private keys offline, also began looking into reports of thefts tied to devices sold through a reseller in Southeast Asia. Researchers pointed to possible losses topping $86 million, though the figure has not been confirmed.

Investors are now turning their attention to US inflation data due out on October 14, with Treasury yields and ETF fund flows also expected to remain in focus in the coming days.