According to Fixygen, the cryptocurrency market ended the week of September 28 through October 2 mostly in positive territory: Bitcoin (BTC) once again surpassed the $86,000 mark, Ethereum (ETH) approached the $2,750 mark, and investors shifted their focus to the outlook for U.S. interest rates and the continued inflow of institutional capital into digital assets.
As of Friday morning, Bitcoin was trading at around $86,500, having risen nearly 3% over the previous 24 hours. During trading, prices approached $87,000. For comparison, on September 25, BTC was trading at around $84,400.
Ethereum traded in the range of $2,740–$2,750 on Friday, compared to approximately $2,670 at the start of the week.
Cryptocurrencies were supported by a decline in expectations regarding further monetary tightening by the U.S. Federal Reserve. Following the release of U.S. labor market data, which came in weaker than expected, Treasury yields fell, and market estimates suggest the likelihood of a Fed rate hike in October has decreased significantly.
The liquidation of short positions served as an additional driver of growth. As Bitcoin rose to $87,000, the volume of liquidations in the cryptocurrency market exceeded $300 million over the course of a single day.
This week marked a continuation of a strong third quarter for cryptocurrencies. From July through September, Bitcoin rose by more than 40%, and Ethereum by more than 70%, although both of the largest cryptocurrencies remain below their all-time highs set in 2025.
Amid the market recovery, Citigroup raised its 12-month price forecasts for the largest cryptocurrencies. The forecast for Bitcoin has been raised to $113,000 from the previous $82,000, and for Ethereum to $3,028,000 from $2,024,000. The bank attributes the revision to increased activity in the cryptocurrency market, changes in the macroeconomic situation, and the resumption of capital inflows into cryptocurrency ETFs.
A key development this week was the continued convergence of the traditional banking system with stablecoins. On September 28, Citigroup and the U.S. crypto exchange Coinbase announced an expansion of their partnership in the field of digital payments.
The companies intend to integrate Citi’s banking infrastructure with Coinbase’s cryptocurrency payment infrastructure. Corporate clients will be able to use solutions for accepting payments in stablecoins and converting them into traditional currencies. The partnership is primarily focused on international settlements and payments operating 24/7.
Another trend of the week was the continued development of rules governing how institutional investors handle crypto assets.
On October 1, the U.S. Securities and Exchange Commission (SEC) proposed a new framework for the custody of digital assets by investment advisors and regulated funds. This proposal aims to establish a specific regulatory framework for the custody of cryptoassets and to define the conditions under which financial institutions may hold digital assets.
Thus, the U.S. regulator is gradually shifting from regulating the crypto market primarily through enforcement to establishing specific rules for digital assets.
At the same time, regulations in the United Kingdom are changing. On September 30, the Financial Conduct Authority (FCA) began accepting applications from cryptocurrency companies wishing to operate under the UK’s new regulatory regime for digital assets.
Companies must submit their applications by February 28, 2027. The UK’s new cryptocurrency market regulatory framework is set to take effect in October 2027.
The market’s attention remains firmly focused on the tokenization of traditional financial assets. One of the key developments in late September was an agreement between the New York Stock Exchange and Blockchain.com to expand access to tokenized U.S. stocks and ETFs.
The parties signed a memorandum of understanding that provides for the possibility of granting Blockchain.com clients access to tokenized securities traded on a dedicated digital platform operated by the NYSE. The project’s implementation will depend on obtaining the necessary approvals from regulatory authorities.
Another notable change is taking place in the stablecoin market. Tether is preparing to bring USDT back into the Bitcoin ecosystem more than a decade after the token effectively left it. This is expected to happen using the new RGB protocol, which allows for the issuance of digital assets based on the Bitcoin network.
At the same time, the stablecoin market continues to face regulatory and sanctions-related risks. A report published this week by the U.S. Senate Permanent Subcommittee on Investigations highlighted the widespread use of USDT by entities linked to Iran to circumvent sanctions. In response, Tether announced its cooperation with U.S. authorities and reported that it had frozen nearly $550 million in USDT linked to Iran in 2026.
Thus, the week highlighted several trends that are currently shaping the crypto industry: the recovery in the value of major digital assets, the return of institutional demand, the integration of stablecoins into traditional banking payments, and the gradual establishment of a comprehensive regulatory framework in the U.S. and the U.K.
In the coming weeks, key factors for the market will remain the Fed’s decisions, the dynamics of U.S. Treasury yields, capital flows into cryptocurrency ETFs, and further U.S. regulatory decisions.
Provided demand remains strong, the $87,000–$90,000 range remains the next key level for Bitcoin. However, cryptocurrencies’ high sensitivity to interest rates and macroeconomic data poses a risk of sharp corrections following strong growth in the third quarter.
Sources: Reuters, SEC, FCA, Coinbase, CoinDesk.
