TLDR
- Bitcoin traded near $84,500 this week as expectations for further Federal Reserve rate hikes eased.
- U.S. spot Bitcoin ETFs attracted around $2.4 billion during the previous full trading week.
- Citigroup raised its 12-month Bitcoin target to $113,000 and its Ethereum forecast to $3,028.
- U.S. regulators proposed a new framework for crypto custody by investment advisers.
- Binance faces scrutiny in Europe while a MetaMask validator incident and the shutdown of Layer-2 network Blast added fresh risks.
Bitcoin traded near $84,500 this week, with Ethereum and several other major coins moving alongside it. The gains followed a rough September and came as traders grew more hopeful that the Federal Reserve would hold interest rates steady.
Bitcoin had briefly touched higher levels earlier in the week before settling back. Comments from Federal Reserve officials reduced expectations for another near-term rate increase, which helped boost demand for riskier assets.
Crypto-linked stocks also moved higher. Shares of Strategy, Coinbase and Robinhood climbed alongside Bitcoin’s price action.
ETF Demand Returns and Wall Street Turns More Bullish
U.S. spot Bitcoin ETFs saw money flow back in this week. The funds pulled in about $2.4 billion in net inflows during the trading week ending September 25. That helped push Bitcoin ETF flows for 2026 back into positive territory.
Strategy kept buying too. 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 appetite for riskier assets improved overall.
Citigroup also raised its outlook. The bank increased its 12-month Bitcoin price target from $82,000 to $113,000, pointing to stronger crypto activity and renewed ETF inflows. Citigroup also raised its Ethereum forecast from $2,240 to $3,028.
Jobs Data and the Fed’s Next Move
The broader economy played a role in the week’s crypto moves. 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. 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 outlook and pressure prices again.
Ethereum Lags Behind Bitcoin’s Recovery
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.
Regulators Move on Crypto Custody Rules
U.S. regulation saw a step forward this week. The SEC proposed a new framework for how registered investment advisers can custody cryptocurrencies.
The proposal could let advisers self-custody certain digital assets when a suitable third-party custodian isn’t available. Advisers would still need to meet security and expertise requirements.
Binance Faces Pressure in Europe
Europe took a more cautious stance. Regulators are examining whether Binance has kept serving European customers without proper authorization under the EU’s MiCA rules.
Binance says some customers use its services under Europe’s “reverse solicitation” exemption. Regulators are now reviewing whether that exemption is being applied correctly.
Tether Expands to Bitcoin, Blast Shuts Down
Stablecoins saw a new development too. 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.
Not every project fared well. Ethereum Layer-2 network Blast announced it is shutting down after assets on the network fell from more than $2 billion at their peak.
The closure shows how tough competition has become among Layer-2 networks as activity consolidates around bigger platforms. Bitcoin’s attempt to hold near $84,500 remains the key story heading into the new week, though high leverage and regulatory questions mean volatility could stay elevated.
