Track market-moving stories before they get noisy

Tether plans to issue USDT natively on Bitcoin through RGB. RGB uses Bitcoin for commitments while keeping contract data off-chain. Morgan Stanley personnel reportedly discussed the infrastructure, but no bank rollout has been announced. Tether CEO Paolo Ardoino has put Bitcoin back at the center of USDT’s expansion strategy, saying the world’s largest stablecoin is “coming home” as institutional discussions emerge around its Bitcoin-native infrastructure.

USDT on Bitcoin. It's coming home https://t.co/JnUo8og7Vv

— Paolo Ardoino 🤖 (@paoloardoino) September 24, 2026

Tether has already committed to issuing USDT through RGB, potentially opening Bitcoin to a stablecoin market worth roughly $183.5 billion without requiring Tether to build a blockchain of its own.

The opportunity is not $183.5 billion suddenly migrating onto Bitcoin. It is whether Bitcoin can capture a meaningful share of stablecoin settlement that currently happens elsewhere.

USDT Is Coming to Bitcoin, Not a Tether Blockchain Ardoino’s latest comment follows speculation over whether Tether might eventually create a proprietary blockchain.

That is not the strategy the company has announced.

Tether said in August 2025 that it would bring USDT to RGB, which had reached Bitcoin mainnet with its v0.11.1 release. The integration is designed to let users hold and transfer Bitcoin and USDT from the same wallet while using Bitcoin as the underlying commitment layer.

“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable,” Ardoino said when Tether announced the project.

RGB matters because it does not work like an Ethereum-style smart-contract network.

Its architecture uses client-side validation, meaning participants validate the contract history relevant to their assets rather than requiring every network node to store and validate the complete contract state.

Contract data remains off-chain. Compact cryptographic commitments are anchored to Bitcoin, while single-use seals tied to Bitcoin UTXOs help establish ownership transitions and prevent the same state from being reused.

That gives Tether a route onto Bitcoin without creating another global execution layer.

One Bitcoin Stack, Three Different Jobs USDT ON BITCOIN

Three Layers, Three Jobs

01

SETTLEMENT FOUNDATION

Bitcoin

Provides the UTXOs and proof-of-work-secured commitment layer used by RGB.

02

ASSET LAYER

RGB v0.11.1

Issues and transfers assets through client-side validation and Bitcoin-anchored single-use seals.

03

PAYMENT LAYER

Lightning

RGB supports assets moving through Lightning channels for faster off-chain payments.

Key distinction: USDT would use this infrastructure rather than migrate onto a new Tether-owned blockchain.

RGB’s design also changes what “on Bitcoin” means.

USDT contract state would not simply be written into every Bitcoin block for the entire network to process. Each recipient instead validates the relevant history locally, while Bitcoin provides the commitments that make those state changes verifiable.

RGB says its assets can also move natively through typed Lightning channels rather than relying on a bridge.

For stablecoins, that combination targets two constraints simultaneously: using Bitcoin as the security foundation without requiring every payment to compete directly for base-layer blockspace.

Morgan Stanley Puts Institutions Into the Conversation The latest institutional angle comes from Viktor Ihnatiuk, co-founder of Bitcoin infrastructure company Utexo.

Ihnatiuk said he discussed USDT on Bitcoin with Morgan Stanley personnel in Washington, with the conversation involving Utexo’s work around the technology. Ardoino subsequently amplified the development with his “coming home” comment.

There is an important limit to what can be concluded from that exchange.

Morgan Stanley has not announced a USDT settlement product, commercial launch or formal deployment. The reported discussions show institutional interest around the infrastructure, not a confirmed banking product.

That distinction also makes the next stage easier to measure.

A bank discussing Bitcoin-native stablecoin infrastructure is interesting. A bank using it to settle real transactions would be materially different.

Bitcoin Is Competing for Stablecoin Settlement Tether already distributes USDT across established blockchain networks, so Bitcoin is not entering an empty market.

It has to win activity from rails where exchanges, wallets, market makers and users already have deep stablecoin infrastructure.

That changes how a successful launch should be judged.

Total USDT supply says little about Bitcoin adoption. More useful indicators would be USDT issued through RGB, transfer volume, active wallets, Lightning liquidity supporting RGB assets, exchange integrations and institutional settlement activity.

Those metrics would show whether the integration is becoming financial infrastructure or simply another supported network.

The technical architecture gives Bitcoin a distinctive pitch.

It can offer the monetary security of the base chain, an asset protocol that keeps contract state largely client-side and a payment network designed to move value without waiting for an individual base-layer confirmation for every transaction.

But architecture does not create liquidity by itself.

The Test Starts After USDT Goes Live Tether bringing USDT to Bitcoin would remove one technical barrier between the world’s largest stablecoin and the world’s largest crypto asset.

The economic test comes afterward.

If USDT balances begin accumulating through RGB, Lightning channels develop usable stablecoin liquidity and financial institutions move from discussions to live transactions, Bitcoin would be doing something materially different from simply securing BTC ownership.

It would be competing for the dollar settlement activity that has historically concentrated on other crypto networks.

That is the number worth watching, not Tether’s total market capitalization.

Alex is a financial markets journalist and co-founder of Millennial Media Group, and he's spent close to ten years trying to answer one stubborn question: what's really driving this? It started in 2016, when Bitcoin refused to make sense to him - and rather than shrug, he stayed with it until it did. That patience became his method. He's less interested in what an asset is doing today than in the plumbing behind it: how liquidity flows, where risk hides, what a chart is quietly telling you that the headline isn't. That lens eventually stretched well past crypto into traditional markets, because the same forces - fear, leverage, incentives, timing - show up everywhere once you know how to look. Most coverage, in his view, insults the reader by stopping at the surface. Price up, price down, moving on. He'd rather leave someone genuinely understanding a move than merely informed that it happened. His path into markets ran through a Tourism degree at New Bulgarian University - proof, maybe, that curiosity beats credentials. With more than 200 deep analyses and over 10,000 articles behind him, he still walks away from most trading days having learned something he didn't know that morning.

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New York-based cryptography firm [alloc] init has introduced what it calls “Shielded Bitcoin,” a metaprotocol designed to bring Zcash-grade transaction privacy to Bitcoin’s base layer without changing a single line of Bitcoin’s consensus code. The system uses encrypted notes, nullifiers, and zero-knowledge proofs, all published directly on the Bitcoin blockchain, to create shielded transfers that look like ordinary Schnorr signature transactions on-chain.

How PIPEs v2 makes it work The technical foundation is something the team calls Bitcoin PIPEs v2, detailed in a paper published on February 5, 2026, by a 10-member research team. PIPEs v2 introduces witness encryption to Bitcoin, a cryptographic technique that locks private keys behind what mathematicians call non-deterministic polynomial (NP) statements. In simpler terms, it creates spending conditions that are enforced by pure math rather than by Bitcoin’s scripting language or its consensus rules.

The specific mechanism uses something called an Arithmetic Affine Determinant Program (AADP)-based witness encryption scheme. AADP is a mathematical framework that allows the system to verify complex conditions about transactions without exposing the underlying data. It’s the engine that makes the shielded pool possible while keeping everything compatible with Bitcoin as it exists today.

Misha Komarov, founder and CEO of [alloc] init, summarized the philosophy concisely.

“Programmability lives in cryptography, not Script.”

The system requires no soft forks, no multisig arrangements, no BitVM-style fraud proofs, and no trusted setup ceremonies. Verification and recovery require only a Bitcoin node and an indexer, with no operators, federations, or alternative chains involved.

The Zcash parallel, minus the Zcash baggage The Shielded Bitcoin design explicitly mirrors Zcash’s shielded pool architecture. By transplanting this privacy model onto Bitcoin, [alloc] init is betting that the demand for private transactions exists but that users don’t want to leave Bitcoin’s network effects, liquidity, and security model to get it.

[alloc] init’s proposal carries its own caveats. Current storage costs for the implementation sit at approximately 330 TB, a number that would make even well-resourced node operators wince. For context, a typical Bitcoin full node today requires roughly 600 GB of storage. The team has set a target of reducing that footprint to around 100 GB, but that optimization hasn’t been achieved yet.

What this means for Bitcoin’s privacy landscape Existing privacy tools for Bitcoin, like CoinJoin implementations such as Wasabi Wallet and Samourai Wallet, have faced increasing legal pressure. Samourai’s founders were arrested in 2024 on money laundering charges, sending a chill through the Bitcoin privacy ecosystem.

The gap between 330 TB and 100 GB is where ambition meets reality, and that’s where the real work begins.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

CryptoBriefing

Anchorage Digital has announced plans to build support for Bitcoin staking on the Stacks platform, enabling institutional investors to fund Bitcoin bonds and receive weekly BTC rewards. This development is part of a broader initiative to enhance institutional access to Bitcoin-yield products without altering the underlying Bitcoin protocol. The program involves locking BTC on Bitcoin’s Layer 1 and STX on Stacks for a fixed period, allowing participants to maintain custody of their assets while earning BTC-denominated yields. Anchorage’s move is seen as a step towards increasing institutional engagement with Bitcoin through Stacks.

Key Takeaways Anchorage’s support for Bitcoin staking on Stacks suggests growing institutional interest in BTC yield products. The development appears consistent with increased demand for Bitcoin, which could influence market sentiment positively. While supportive of Bitcoin’s price, the move is not viewed as a transformative change to Bitcoin itself. What to Watch Markets will be monitoring how the introduction of Bitcoin staking on Stacks by Anchorage impacts BTC demand and institutional participation. Key indicators include any shifts in Bitcoin’s price ahead of the September 26 price threshold. Potential regulatory developments or changes in macroeconomic conditions could also play a significant role in influencing Bitcoin’s market dynamics.

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Term Structure

Contract Odds Δ since publish Volume 24h September 26 2026 98% — — View market → September 26 2026 1.7% — — View market → September 26 2026 0.8% — — View market → September 26 2026 96% — — View market → September 26 2026 55% — — View market →

Circle now has a federally chartered national trust bank, and it wants to make your Bitcoin do more than sit in a wallet appreciating. Circle National Trust, operating as First National Digital Currency Bank, N.A., received final approval from the Office of the Comptroller of the Currency on July 10, 2026, and opened its doors for business on July 24.

The bank’s primary mission: serve as the regulated custodial backbone for cirBTC, Circle’s wrapped Bitcoin product that lets BTC holders access Ethereum-based DeFi protocols without actually parting with their Bitcoin.

What Circle National Trust actually does Think of Circle National Trust as a vault with a federal badge. It’s not a traditional commercial bank. It won’t accept deposits or issue loans. Instead, it functions as a qualified custodian, holding native Bitcoin in segregated, bankruptcy-remote accounts on behalf of cirBTC token holders.

cirBTC itself is an ERC-20 token backed 1:1 by native Bitcoin. For every cirBTC in circulation, there’s a corresponding BTC locked up under the bank’s custody. Holders can redeem their tokens for the underlying Bitcoin on a 1:1 basis.

The transparency layer comes courtesy of Chainlink’s Proof of Reserve system, which provides verifiable on-chain attestation that the reserves actually exist. This is a pointed response to the trust problems that have plagued other wrapped Bitcoin products over the years, where users often had to take a custodian’s word that the backing assets were really there.

All of this operates under OCC supervision. That’s the same federal regulator that oversees JPMorgan and Bank of America, now watching over a bank whose entire purpose is holding crypto for DeFi users.

The regulatory journey Circle didn’t stumble into federal regulation overnight. The company filed its application on June 30, 2025, received conditional approval in December 2025, and secured final OCC sign-off in July 2026. That timeline, roughly a year from application to operational status, is relatively brisk by federal banking standards.

The company’s regulatory credentials extend beyond the OCC charter. Circle previously secured a New York BitLicense, one of the more demanding state-level crypto licenses in the US. The company is also compliant under the EU’s MiCA regulations, giving it a foothold in European markets as well.

The cirBTC whitepaper dropped in August 2026, laying out the compliance framework and operational mechanics. Further integrations were announced throughout September, suggesting Circle is moving quickly to build out the token’s utility across DeFi platforms.

For context, Circle is already the issuer of USDC, the second-largest stablecoin by market capitalization.

Why this matters for Bitcoin holders Wrapped Bitcoin products have existed for years to bridge this gap. The most prominent, WBTC (Wrapped Bitcoin), has been a mainstay of DeFi but has also been a source of controversy. Custody arrangements for wrapped tokens have historically relied on centralized entities without federal regulatory oversight, creating counterparty risk that made institutional investors uneasy.

Circle’s approach attempts to solve this by inserting a federally regulated bank into the custody chain. The segregated, bankruptcy-remote account structure means that if Circle the company were to face financial trouble, the Bitcoin held in custody should theoretically be protected from creditors.

The Chainlink Proof of Reserve integration addresses the transparency concern from the other direction. Rather than trusting quarterly attestations from an accounting firm, users can verify reserve backing on-chain in something close to real time.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Glassnode stated that Bitcoin has broken above significant cost floors that have been suppressing its price throughout 2026, and the market is now poised to test higher levels. According to the analytics firm, limited profit-taking, renewed demand for spot Bitcoin ETFs, and a recovery in trading volumes indicate that the current rally is progressing in a healthier manner compared to previous peak periods.

According to Glassnode’s latest assessment, Bitcoin has managed to break above the Real Market Average level, which has acted as resistance for much of 2026, and the high cost zone for long-term investors. In particular, with a significant supply of long-term investors in the $84,000-$85,000 range, maintaining the price above this region is considered critical for a bullish scenario.

The company reported that the next major resistance level in on-chain data is approximately $96,700, corresponding to the average MVRV price. This level also coincides with positioning in the options market. According to Glassnode, market makers’ hedging actions could accelerate movements between the current price and $92,000, while causing price movements to slow down around $95,000.

The report also noted that Bitcoin never closed below its Realized Price level on a daily basis during the last bear market. Although the ratio of coins in profit to total supply fell to levels seen in the 2022 bear market, the fact that the Net Unrealized Profit/Loss indicator remained in positive territory showed that the market remained more resilient compared to previous bear periods.

Glassnode noted that it’s also important for the June low to remain above the Realized Price. If the Bitcoin price holds above $77,000, the current bear market bottom could be recorded as the shallowest pullback since 2017.

On the other hand, although almost all short-term Bitcoin investors have returned to profitability, it has been noted that profit-taking in the market remains significantly below the peak periods of 2024 and 2025. This indicates that investors are not yet aggressive in selling at current levels.

On the institutional side, it was noted that ETF demand has accelerated again. Glassnode reported that spot trading volume has more than doubled since its August low, and unlike previous periods, this volume increase has spread to many exchanges along with the price rise.

While a broad-based uptrend is observed in the altcoin market, it has been noted that investors have not significantly increased their use of leverage. According to Glassnode, this indicates that the current market movement is being supported by spot demand rather than heavy leverage.

The company sees the $95,000-$97,000 region as the main testing ground for Bitcoin in the short term. If the price remains above $84,000, the path towards this region remains open, while a drop below $84,000 and then below $77,000 is considered a development that could call into question the strength of the current recovery.

*This is not investment advice.

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Ohio Treasurer Robert Sprague announced the launch of a state-backed digital wallet that lets Ohioans pay state agencies with cryptocurrency, framing the program as the first statewide authorization of digital asset payments. The Buckeye Billfold initiative was unveiled with Secretary of State Frank LaRose in a release from the Treasurer’s office. Any cryptocurrency sent through the wallet is converted to US dollars at the moment of the transaction, so the state receives fiat in its normal bank account and never holds the volatile asset on its books. The office positioned the launch as a cost-cutting move that also saves processing time.

How Buckeye Billfold works Payment options under the initiative include credit cards, ACH transfers and cryptocurrency, while cash and check remain available. It is open to residents and businesses for payments owed to state agencies. The instant conversion to dollars is the design’s core safeguard: Ohioans are assured their payment has settled, and the state avoids marking any digital currency to market. The Treasurer’s office said the program will reduce overall transaction costs and save time for both government and Ohioans, describing the wallet as fully legally authorized and carefully developed and tested.

A second attempt after OhioCrypto’s 2019 failure Ohio tried accepting cryptocurrency for business tax payments once before, through a service called OhioCrypto.com. A 2019 opinion from then-Attorney General Dave Yost found that program had not followed the proper process to be authorized as a financial transaction device by the State Board of Deposit. Last year the board authorized cryptocurrency use, and in September Sprague and the board unanimously approved Grant Street Group as the vendor to facilitate crypto acceptance for state fees and services.

Crypto acceptance spreads across Ohio government LaRose cast the rollout as keeping government in step with how Ohioans already transact. “Ohio is leading the way by embracing Bitcoin and cryptocurrency innovation,” he said, adding that he will continue the partnership with Sprague as the two offices implement the payment options. The move lands as governments and merchants elsewhere test crypto payment rails, from Dubai’s government payment claims to merchant-facing Bitcoin cards such as the Wirex-powered Chimera card.

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Kester is an experienced freelance content writer. His focus is primarily on blockchain technology and cryptocurrency. One might even refer to him as a "blockchain enthusiast." He has been following advancements in the crypto and blockchain area for several years, researching and writing his insights in the media. In addition to being a skilled content writer, Mushumir is also knowledgeable in SEO and digital marketing. He aspires to succeed as a content creator in the digital realm, dealing with customers in the finance and tech industries to generate traffic through engaging taglines and content. Mushumir enjoys traveling, reading, and playing cricket when he is not writing. He now works as a news and article writer for BlockchainReporter.

Coinbase has begun designing a post-quantum custody system intended to protect about $250 billion in institutional assets while supporting any new signature scheme adopted by Bitcoin or another blockchain.

Summary

Coinbase is preparing custody infrastructure for several possible post-quantum signature schemes. Hash-based signatures may not work with the MPC systems used by many crypto custodians. Programmable hardware security modules could provide Coinbase with an alternative key-protection method. Bitcoin developers have not selected or activated a post-quantum signature standard. Coinbase prepares custody for several signature schemes MARA Foundation TV hosted Coinbase Chief Cryptographer Yehuda Lindell, who said the exchange wants its custody platform to remain usable regardless of which post-quantum signature schemes blockchains eventually select.

Bitcoin has not chosen a signature scheme for practical post-quantum use, leaving custodians without a single technical standard around which to rebuild their systems. Lindell said different blockchain communities may also reach different decisions instead of adopting one common scheme.

Coinbase is therefore preparing for several possible outcomes rather than building its system around one candidate. Lindell said the company wants to avoid a situation in which a blockchain approves a signature scheme that its custody infrastructure cannot handle.

The work carries added weight because Coinbase holds about $250 billion in assets for institutional customers, according to the figure Lindell gave during the program. Its clients include BlackRock, which uses Coinbase Custody for digital assets connected to its investment products.

An August U.S. custody review placed Coinbase’s institutional assets at approximately $376 billion and said the company safeguards more than 80% of assets held by U.S. spot Bitcoin and Ethereum exchange-traded funds. Differences between the two totals may depend on their reporting dates and the services or assets included in each estimate.

Custody systems protect the private keys needed to authorize transactions. Any future change to Bitcoin’s signature method would therefore require large custodians to update the technology used to create, store and operate those keys.

Post-quantum signatures challenge existing MPC custody Many institutional custody platforms use Multi-Party Computation, or MPC, to divide control of a private key among several parties. Under such an arrangement, no participant needs to hold or assemble the full private key while approving a transaction.

Lindell said many post-quantum signature schemes may be “not friendly to MPC” because their mathematical design differs from the signatures now used by major blockchains. Hash-based signatures present a particular problem because they lack the arithmetic structure on which traditional cryptographic key splitting depends.

Researchers, including Stanford University cryptographer Dan Boneh, are studying possible ways to apply MPC-style controls to such signatures, Lindell said. The research remains highly experimental, however, and it is not yet clear whether a practical MPC-equivalent system can be created for hash-based signatures.

Coinbase’s existing interest in the field predates the latest custody design. In January, the company established an independent quantum computing and blockchain advisory board that includes Boneh, Lindell, Ethereum Foundation researcher Justin Drake, University of Texas professor Scott Aaronson, EigenLayer founder Sreeram Kannan and distributed-systems specialist Dahlia Malkhi.

According to Coinbase, its post-quantum roadmap includes changes to Bitcoin address handling, updates to internal key-management systems and research into supporting schemes such as ML-DSA within MPC infrastructure. The company tasked the advisory board with assessing quantum developments, publishing recommendations and responding to major technical advances.

Other custodians have started testing one possible route. In June, BitGo tested quantum-safe MPC with Silence Laboratories using an ML-DSA-based protocol integrated into BitGo’s custody platform. The simulation retained distributed key control, policy checks, and separation of duties, according to the companies.

ML-DSA is included in FIPS 204, a post-quantum digital signature standard published by the U.S. National Institute of Standards and Technology. Lindell’s comments indicate that Coinbase wants an architecture capable of handling schemes beyond ML-DSA if Bitcoin or another network chooses a different design.

Hardware modules could provide a custody fallback To reduce its dependence on MPC compatibility, Coinbase is exploring a backup design built around programmable Hardware Security Modules, according to Lindell.

HSMs are physically protected devices used to store cryptographic material and perform sensitive operations. Under the architecture being considered by Coinbase, private keys would remain encrypted using post-quantum cryptography and would be assembled only inside secure HSMs.

Containing the complete key within the protected device would allow the custodian to work with signature schemes that cannot be divided through conventional MPC. Programmable modules could also give Coinbase room to add support as blockchain developers settle on new standards.

Lindell did not provide a completion date, saying the technical work could take time. Once the system is finished, however, he expects Coinbase to operate without having to predict which post-quantum scheme each network will choose.

“I will be able to say, I can support any scheme,” Lindell said.

Physical security becomes more important under the proposed model because the full key would temporarily exist inside an HSM. Coinbase would therefore need the modules to perform signing without exposing the key to outside software or operators.

The approach would not require Coinbase to abandon MPC for signature schemes that support it. Instead, the HSM architecture would serve as another custody method when a network’s chosen cryptography cannot work with distributed key generation and signing.

Bitcoin has not approved a quantum migration plan Bitcoin currently uses elliptic-curve cryptography, and no publicly demonstrated quantum computer can derive its private keys from exposed public keys. Researchers and industry groups have still called for early preparation because changing Bitcoin’s security model would require software development, testing, wallet upgrades, and network consensus.

Crypto.news reported in June that Coinbase’s advisory board urged Bitcoin developers to begin creating migration tools before a cryptographically relevant quantum computer exists. The board estimated that about 1.7 million BTC sit in older pay-to-public-key addresses with exposed public keys, while address reuse could place as many as 5 million BTC within a future risk category.

The advisory board did not recommend freezing, burning, or leaving vulnerable coins available to a future attacker. It said Bitcoin’s community should decide through its consensus process how to treat coins that remain in older address formats after a migration deadline.

Draft proposals are examining separate parts of the problem. BIP 360, known as Pay-to-Merkle-Root, would remove Taproot’s quantum-vulnerable key-path spending option, while BIP 361 describes a phased retirement of legacy ECDSA and Schnorr signatures after Bitcoin gains a post-quantum output method.

Neither proposal has been activated. A recent migration assessment also found that SHRINCS, an experimental hash-based signature design under discussion, remains an unnumbered draft requiring further review and a completed security proof.

For U.S. investors, Coinbase’s preparations concern assets held through regulated investment products as well as coins stored by direct institutional clients. Spot Bitcoin and Ethereum ETF investors do not control the private keys behind fund holdings; those keys are managed by custodians selected by the issuers.

Coinbase’s ability to support multiple signature schemes could become relevant if Bitcoin, Ethereum, or another network used by a U.S.-listed fund adopts new cryptography. Any blockchain migration would still depend on network rules and action by users, wallet providers, exchanges, custodians and fund operators rather than a decision by Coinbase alone.

Today, we are thrilled to announce the acquisition of Crest, a self-custodial private Bitcoin wallet, uniting our teams to make privacy the standard for holding and moving a $1.6T store of value.

Built on Citrea's Bitcoin-secured execution environment, Crest started as an ecosystem project with a bold ambition: to set a new benchmark for mobile, self-custodial Bitcoin privacy. The demand for a frictionless privacy solution was immediate, with Crest quickly attracting over 1,000 privacy enthusiasts to its waitlist. To accelerate this mission, Crest becomes Citrea's flagship privacy product, and Crest's founder Meliksah Gurtemel joins Citrea as Product Lead.

Working on Privacy is a Natural Fit for CitreaBringing privacy to Bitcoin is the natural continuation of a journey our team started years ago. Chainway Labs, a core contributor to Citrea, developed the Proof of Innocence protocol as an open-source framework for privacy-preserving compliance in response to Tornado Cash sanctions in 2022. Proof of Innocence is an open-source cryptographic tool that lets privacy pool users prove their funds are not linked to illicit or blacklisted addresses without revealing their identity. Today, concepts from Proof of Innocence underpin leading privacy protocols including Railgun and Privacy Pools.

“Tackling privacy bottlenecks was where our journey began,” said Ekrem Bal, Co-founder and Chief Scientist at Chainway Labs, a core contributor to Citrea. “In many ways, acquiring Crest is a full-circle moment for us, where we get to bring the privacy work we started to Bitcoin.”As a Bitcoin layer, we see privacy as the most critical value proposition to build. With a market capitalization exceeding $1.6 trillion, Bitcoin’s transparent public ledger has turned user balances, counterparties, and transaction histories into surveillance targets. Bitcoin users seeking privacy must either forfeit self-custody, navigate expert-only technical workflows, or swap into alternative privacy assets. Networks like Zcash already demonstrated the immense demand for simple and intuitive privacy. With this acquisition, Citrea commits its resources to bring that same effortless privacy standard to Bitcoin.

“Solving Bitcoin privacy is the single largest unlock for meeting real user demand on a Bitcoin layer,” said Orkun Mahir Kılıç, Co-founder and CEO of Chainway Labs, a core contributor to Citrea. “Crest is built to be the primary gateway for onboarding users and liquidity from the Bitcoin and privacy ecosystems into Citrea. Acquiring Crest aligns our entire team behind a vision that will generate the most value and adoption for our broader network.”Join the Waitlist: World’s Simplest Private Bitcoin Wallet is ComingThrough Crest, we are building the simplest and most accessible private Bitcoin wallet on the market. In the coming weeks, Crest will launch its Bitcoin mobile wallet with auto-shielding, private BTC transfers, and seamless cross-chain onboarding from Bitcoin and Ethereum.

Crucially, the wallet will enable private cross-chain swaps and exit routes, allowing users to spend shielded BTC to pay EVM addresses in assets like USDC or ETH privately. Over time, the acquisition aims to extend private BTC utility across Citrea’s broader ecosystem.

Privacy is becoming the easiest way to use Bitcoin.

[Join the Crest Waitlist]

Quantum computers can’t break Bitcoin today. But a team at East Texas A&M University isn’t waiting around to find out what happens when they can.

Researchers from the university’s RELLIS Campus published PQLN, short for Post-Quantum Lightning Network, on September 12, 2026. It’s the first working implementation that bolts quantum-resistant cryptography onto Bitcoin’s primary layer-2 scaling network, and the full codebase, nearly 11,000 lines added to a fork of rust-lightning, is already live on GitHub.

What PQLN actually does The Lightning Network lets Bitcoin users transact off-chain, meaning they can send payments back and forth without waiting for every single one to settle on the base blockchain. That speed comes with a tradeoff: Lightning relies on the same elliptic curve cryptography (specifically secp256k1) that secures Bitcoin itself. If a sufficiently powerful quantum computer ever cracks that math, both layers would be exposed.

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PQLN doesn’t rip out the existing cryptography. Instead, it layers lattice-based algorithms on top of it. The two lattice-based tools in the kit are ML-DSA for digital signatures and ML-KEM for key exchange. Both are drawn from the family of algorithms that the US National Institute of Standards and Technology has been standardizing for exactly this scenario.

The implementation covers five critical areas of Lightning operations: gossip (how nodes share network information), peer transport, invoices, payment onions (the routing privacy layer), and offers through the BOLT specification framework. Co-author Ahmet Kurt and his colleagues designed the system so that upgraded nodes can still communicate with legacy nodes.

Performance: surprisingly not terrible PQLN’s benchmarks suggest the damage is manageable. The added cryptographic operations clock in at 0.33 milliseconds or less per operation.

The bandwidth story is more nuanced. Gossip downloads balloon by roughly 10x under PQLN’s default ML-DSA settings. But the researchers tested an alternative signature scheme called Falcon that compresses the overhead to about 4x.

Interoperability testing covered all 12 possible mixed-node scenarios, pairing upgraded and legacy nodes in every combination. The result: zero stuck payments across every configuration.

What it doesn’t protect There’s an important caveat baked into the design. PQLN secures the communication and routing layers of Lightning, but it does not protect actual channel funds or any on-chain Bitcoin elements. The reason is straightforward: changing how Bitcoin’s base layer handles cryptography requires a consensus upgrade, meaning the entire network of miners and node operators would need to agree on new rules.

Why the timing matters Discussions about PQLN appeared on Delving Bitcoin and BitcoinTalk within days of the arXiv publication. The open-source release, complete with a modified sample node, lowers the barrier for other Lightning implementations to study and potentially adopt the approach.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Coinbase launches fixed-rate, bitcoin-backed USDC loans powered by Morpho Midnight on Base.

Coinbase users can now take out bitcoin-backed USDC loans at a fixed rate, so borrowers know their total interest bill and due date on day one. The product runs on Morpho Midnight, the lending protocol's fixed-term engine, on Base.

What’s the Scoop? Fixed vs. floating: Coinbase's existing Morpho loans float, so costs can climb when borrowing demand spikes. The new option sits alongside them for borrowers who want to know exactly what they'll owe and when.

Midnight mainstream: Coinbase is the largest app to plug into Midnight so far. Morpho CEO Paul Frambot cast it as the start of a scaling phase, with more loan types coming to fintech-style front ends built on DeFi.

Borrow for builders: Separately, Coinbase Developer Platform unveiled Borrow for CDP Wallets, which lets third-party apps offer crypto-backed USDC loans on Morpho Blue. Launch collateral includes cbBTC, cbETH, cbXRP, and SOL, and developers can charge their own origination fee.

Federal prosecutors — including the U.S. Department of Justice — are investigating whether Binance has allowed Iran to dodge sanctions by using its platform, according to a report from Bloomberg. 

The outlet, citing people familiar with the matter, reported Tuesday that feds were investigating whether  Binance Holdings Ltd., which operates the world’s biggest crypto exchange, knowingly allowed Iran-linked entities to trade. 

It comes after the U.S. Department of Justice last week said it is seizing and seeking to forfeit $61 million in cryptocurrency that it alleges came from black-market sales of sanctioned Iranian oil. The funds, according to the DOJ, were laundered through Binance by Chinese entities. 

Iran has been using bitcoin — and other cryptocurrencies — to skirt around U.S. sanctions. The U.S. in April started targeting crypto wallets linked to the Iranian regime, Treasury Secretary Scott Bessent said in a statement. 

Bessent went on to say that the Iranian regime’s crypto had been frozen — mostly in the form of Tether’s USDT stablecoin. 

And last week, the Treasury designated BitBank, an Iranian crypto exchange, as part of Operation Economic Outcast — the Trump Administration’s whole-of-government economic campaign against the Islamic Republic of Iran and its enablers.  

Iran started a bitcoin-backed insurance service for its counties shipping companies earlier this year. Bitcoin cannot be frozen, unlike many other cryptocurrencies. 

The Financial Times this month reported that the Middle Eastern country was using bitcoin to settle cross-border transactions through Iranian crypto exchanges after the central bank advised its countrymen to do anything necessary to help the economy.   

Binance, which has no headquarters but is incorporated in the Cayman Islands, ran into trouble with U.S. authorities after it allegedly allowed funds linked to virtual theft and terrorism to flow through its exchange undetected. 

It exited the U.S. market and agreed to pay $4.3 billion. Its CEO and founder Changpeng Zhao stepped down after pleading guilty to anti-money laundering violations but was later pardoned by President Trump. 

Mathew Di Salvo

Mathew is a reporter who's covered the space since 2019, reporting on everything from Salvadoran president Nayib Bukele's Bitcoin bet to crypto exchange FTX's bankruptcy.

Bitcoin

22 September 2026 | 09:30 X has added a trade button to Bitcoin and stock cashtags for eligible US users. The feature begins on X, but the order is completed through a separate financial platform.

The button connects X posts with outside trading accounts X Business announced Cashtag Partners on September 21, presenting it as a way to connect financial conversations with trading.

Introducing Cashtag Partners for stocks and crypto 🚀

X is the best source of financial news for traders and investors, and we’ve made it easier than ever to connect financial conversations with the ability to trade. https://t.co/52cqDNqwix

— Business (@XBusiness) September 21, 2026

Eligible users can select a cashtag such as $BTC, view market information and related posts, and then choose a trading partner. According to CoinDesk’s report, the available partners include Coinbase, Kraken, Gemini, Interactive Brokers and Moomoo.

The current rollout is limited to the United States. X has not announced when the feature will reach other countries or confirmed that every US account will receive access immediately. Availability may also differ by state, asset and partner because each exchange or broker applies its own account and geographic restrictions.

The launch advances the direction covered in our earlier report on X’s crypto and trading super-app plans. X provides the discovery and entry point, while regulated financial companies supply the accounts and execution infrastructure.

What happens after a user taps “Trade”

1. Select the cashtag
The user opens the market page attached to a symbol such as $BTC.

2. Choose a partner
X presents an exchange or brokerage through which the asset may be traded.

3. Sign in or open an account
The selected partner performs its own identity checks and determines whether the user is eligible.

4. Review and place the order
The partner supplies the executable price, processes the order and handles the resulting cash or assets.

The price shown on X may not be the price a buyer receives A chart or market price displayed beside a cashtag is informational. It is not necessarily an executable quote.

When the user reaches the selected platform, the final price can depend on that venue’s order book, spread and fees. It can also change during the handoff, particularly when the market is moving quickly.

The order type matters as well. A market order generally executes at the best prices currently available, while a limit order allows the buyer to set the maximum price they are prepared to pay. Neither option guarantees that the price previously displayed on X will still be available.

Any Bitcoin purchased through the feature is held or withdrawn under the selected exchange’s rules. It does not sit inside the user’s X profile, and an X account does not replace an exchange or brokerage account.

Several commercial details remain unanswered The announcement explains the basic user journey, but it leaves important parts of the partnership model undisclosed.

X has not yet explained: When Cashtag Partners will become available outside the United States Whether every eligible US account will receive the feature at the same time How participating exchanges and brokers are ordered on the screen Whether X receives referral payments when users open accounts or trade Whether additional partners can join and under what conditions Those omissions matter because the order in which platforms appear could influence where users trade. Any referral arrangement would also help explain how X plans to turn financial conversations into revenue. Until X publishes those terms, however, it would be speculative to describe the links as either paid placements or neutral rankings.

A shorter route leaves less time to check the original claim The new button reduces the number of steps between seeing a financial post and reaching an order screen. That convenience also makes the quality of the original information more important.

A trade link does not verify that the post beside it is accurate. It does not mean X, Coinbase or another partner endorses the author’s price prediction. It only provides a faster route to a platform where the user can act.

Three checks before placing an order Check the source: determine whether the post links to an official filing, announcement or verifiable dataset. Check the quote: compare the executable price and fees on the partner platform with the reference price shown on X. Check the order: confirm the asset, amount and order type before submitting it. Cashtag Partners does not turn X into a crypto exchange. It turns the platform into a distribution gateway positioned between financial attention and the companies that execute trades.

That distinction is commercially significant. X can influence where a user begins the process without operating the trading account itself. The partner receives the customer and handles the transaction; X controls the moment when interest is most likely to become action.

This article is provided for informational purposes only and does not constitute financial or investment advice. Partner availability, fees and geographic restrictions may change.

Author

Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.

Whitehat operators have moved 52.37 BTC linked to the July Coldcard wallet exploit into an address associated with a recovery trust created to return rescued Bitcoin to verified owners.

Summary

Whitehat operators moved 52.37 BTC linked to Coldcard exploit wallets into a recovery trust address. The transfer represented 2.8% of tracked exploit funds, according to Galaxy Digital researcher Alex Thorn. Crypto Recovery Trust says verified owners can submit claims and provide evidence for returned assets. Coinkite says patched firmware fixes future seed generation but cannot repair already weakened wallet seeds. Current recommended Coldcard firmware is version 5.6.2 for Mk4/Mk5 and 1.5.2Q for Q devices respectively. Galaxy Digital Head of Research Alex Thorn said the Bitcoin came from the tracked Wave 2 cluster and footprints labeled AA, AU and AX, with the consolidation recorded in Bitcoin block 967,948. Thorn said the amount represented 2.8% of the exploit funds his team was tracking.

❄️COLDCARD WHITE HAT MOVES FUNDS TO TRUST 🏳️

52.37 BTC comprised of coins from Wave 2, Footprints AA, AU, AX consolidated into a fresh address with an OP_RETURN "claim:cryptorecoverytrust dot com" in block 967,948

these white hatted funds represent 2.8% of the coldcard exploit pic.twitter.com/c5eYeQMxHQ

— Alex Thorn (@intangiblecoins) September 21, 2026 The destination transaction carried an OP_RETURN message pointing to “claim:cryptorecoverytrust dot com,” according to Thorn. Galaxy Research separately identified activity in the same block involving 20 inputs and 480 outputs and published transaction ID 38b524ccb8ca260ec705ab980982144857c477658fa39591870ee8cb09bcea47.

Coldcard recovery moves rescued Bitcoin into a trust The transfer places part of the recovered Bitcoin under the Crypto Recovery Trust, a Wyoming statutory trust established to hold digital assets recovered from compromised wallets while ownership claims are checked.

Crypto Recovery Trust states that its role is to reunite recovered assets with their rightful owners through a formal claims process. Its website identifies the legal entity as the Recovered Digital Asset Statutory Trust of Wyoming and names Agentic Trace LLC as trustee.

The Digital Asset Recovery Trust, or DART, had already disclosed recovery work connected with the Coldcard incident before the latest consolidation. DART reported that it and independent whitehat researchers had secured just over 50 BTC from vulnerable addresses as of Aug. 17, moving the funds before malicious actors could reach them.

DART said recovered Bitcoin was placed in the trust instead of researcher-controlled wallets or operational accounts. Its process includes blockchain analysis, proof-of-ownership checks and sanctions screening before assets can be returned. Funds involving competing claims, sanctions restrictions or criminal proceedings may follow separate legal procedures.

The Sept. 21 movement provides a newer on-chain view of those recovery efforts. Thorn tied the 52.37 BTC specifically to previously identified exploit clusters, while describing them as whitehat-controlled funds. His 2.8% calculation refers to Galaxy’s tracked exploit total and should not be read as an official Coinkite loss figure.

Coldcard exploit began with a seed-generation flaw The Coldcard incident began July 30 after attackers exploited weakened Bitcoin wallet seeds created by affected firmware. Coinkite’s current incident record explains that a firmware integration defect caused the seed-generation path to resolve to MicroPython’s Yasmarang software pseudorandom generator instead of the intended hardware random number generator.

Attackers did not need to remotely control the hardware wallets. Coinkite says they regenerated vulnerable private keys offline after the reduced randomness made affected seed phrases easier to search. The company describes the incident as a firmware seed-generation failure, not a remote takeover of Coldcard devices.

Independent technical research has traced the weakness to firmware changes dating from 2021. One public investigation estimated that older Mk3 devices could produce roughly 40 bits of effective entropy under affected conditions, while Mk4, Mk5 and Q models retained approximately 72 bits instead of the intended security level.

Early losses were smaller than the totals later associated with multiple attack waves. As crypto.news previously reported, the Coldcard firmware build error and first-wave Bitcoin losses involved roughly 594 BTC taken from around 500 wallets within approximately 25 minutes.

Later tracking identified additional wallets and attack waves. A separate crypto.news investigation into the five-year Coldcard entropy flaw and four attack waves estimated 1,816 BTC had moved from more than 5,200 addresses as analysts expanded the identified scope.

Loss estimates therefore vary depending on which attack waves, clusters and recovery transactions are included. Coinkite’s current security status page does not publish a single definitive total for all stolen Bitcoin.

Coinkite says firmware updates cannot repair old seeds Coinkite released emergency fixes on July 31 for affected firmware lines. The company’s download archive shows Mk4/Mk5 version 5.6.0 and Q version 1.5.0Q as the first standard releases correcting future seed generation, while separate patches covered older Mk2/Mk3 devices and Edge firmware.

Security work continued after the initial patch. Current recommended standard releases are Mk4/Mk5 5.6.2 and Q 1.5.2Q, both issued Sept. 3. Edge users are directed to 6.6.1X for Mk4/Mk5 and 6.6.1QX for Q.

Coinkite stresses that installing fixed firmware does not change an existing seed. A wallet generated under vulnerable firmware can remain exposed even after the device receives the latest update because the weakness exists in the seed itself.

Users with affected seeds are instructed to generate a corrected replacement seed and migrate funds, unless they meet the company’s stated independent-dice exception. Coinkite says at least 50 fair, independent and privately recorded six-sided dice rolls added under the relevant workflow provide at least 128 bits of additional entropy, though users uncertain about the conditions are told to migrate.

Victims can submit ownership claims to the recovery trust The recovery process now centers on verifying who controlled addresses from which whitehats swept Bitcoin. Crypto Recovery Trust lets claimants search for recovery information, track a submitted claim and provide additional supporting evidence through its website.

DART says the trust was structured to segregate recovered Bitcoin from researcher and operating funds while ownership is established. Attorneys from Steptoe’s national security practice advise the trustee, according to DART’s disclosure, because some returned assets may require sanctions, law-enforcement or competing-ownership reviews.

The whitehat researchers involved in DART’s earlier recovery work did not request a bounty, according to the organization. DART said other vulnerable assets and possible recovery leads remained under review after its August tally, leaving open the possibility that further Coldcard-linked funds could enter the claims process.

For wallets that still rely on seeds created under affected Coldcard firmware, Coinkite’s current instructions remain unchanged: install and verify a fixed firmware release, create a new seed under the corrected process, and move funds away from the vulnerable seed.

Strategy has resumed Bitcoin purchases after a two week pause, spending $75.7 million on 950 BTC while deploying another $174 million to repurchase its STRC preferred stock.

Summary

Strategy bought 950 BTC for $75.7 million after a two week pause, raising its holdings to 846,000 BTC. The company spent another $174 million repurchasing 1.77 million STRC preferred shares during the same week. Strategy made no ATM sales during the period, while its deployable USD Cash fell nearly 20% to $1.05 billion. Strive separately acquired 1,355 BTC, increasing its corporate Bitcoin holdings to 26,355 BTC. According to a Form 8-K filing with the U.S. Securities and Exchange Commission on Sept. 21, Strategy acquired the Bitcoin between Sept. 14 and Sept. 20 at an average price of $79,670 per coin, including fees and expenses.

The purchase increased the company’s holdings to 846,000 BTC, acquired for a total of $63.80 billion at an average cost of $75,416 per Bitcoin.

Bitcoin was trading near $84,925 at the time of publication, putting the market value of Strategy’s holdings at roughly $71.85 billion. Based on the company’s reported acquisition cost, the position carried an unrealized gain of approximately $8.05 billion.

Strategy shares gained 7.4% to $165.20 in Monday premarket trading as Bitcoin traded above the price paid for the latest acquisition.

Strategy returns to Bitcoin buying after two week pause The latest purchase ended two consecutive reporting periods without any new Bitcoin acquisitions.

Strategy last returned to Bitcoin buying at the end of August, when it purchased 4,603 BTC for $369.7 million at an average price of $80,318. The transaction raised its holdings from 840,447 BTC to 845,050 BTC.

Unlike the latest transaction, that purchase was financed through Strategy’s at the market common stock program. The company sold 4.53 million MSTR shares for $602.8 million in net proceeds, allocating $369.7 million to Bitcoin and $151.8 million to STRC repurchases.

Buying activity then stopped for two weeks as Strategy directed more cash toward its preferred securities.

During the first week of the pause, the company spent $176.3 million repurchasing 1.81 million STRC shares while leaving its Bitcoin holdings unchanged. Its board simultaneously doubled the Digital Credit Securities Repurchase Program from $1 billion to $2 billion.

Another $139.3 million was spent on 1.42 million STRC shares during the following reporting period, while Strategy again bought no Bitcoin and made no sales through its at the market programs. As crypto.news previously reported, the company entered that period with 845,050 BTC and $1.30 billion in deployable USD Cash.

The latest 950 BTC purchase has returned Strategy’s holdings to 846,000 BTC, the same total it reported at the end of the second quarter before Bitcoin sales during July and August reduced the balance.

STRC buybacks remain larger than Bitcoin spending Strategy continued repurchasing STRC even as Bitcoin accumulation restarted, spending $174 million on approximately 1.77 million shares between Sept. 14 and Sept. 20.

The amount was more than twice the $75.7 million allocated to Bitcoin during the same period.

STRC, formally known as Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, has a stated amount of $100 per share. The company has used repurchases and its dividend policy in an effort to keep the security trading close to that level.

Strategy had spent roughly $950.8 million repurchasing nearly 9.96 million STRC shares between July 20 and Sept. 13. The security had recovered toward $100 after falling near $70, reaching above $99 during intraday trading earlier this month before pulling back.

Monday’s latest repurchases pushed Strategy’s spending on STRC further above $1 billion since the current sequence of buybacks began.

The company has said purchases below STRC’s $100 stated amount allow it to retire preferred securities for less than their stated value while reducing future dividend requirements.

STRC was trading at $98.85 during Monday’s premarket session, up 0.35%.

Strategy retained $875.1 million in authorization for further preferred stock repurchases after the latest transaction. Its separate MSTR common stock repurchase program remained untouched, leaving the full $1 billion authorization available.

Strategy uses existing cash without ATM sales Funding for the latest transactions came directly from Strategy’s cash balance, as the company made no sales through its at the market offering programs between Sept. 14 and Sept. 20.

Strategy used $75.7 million of USD Cash for the Bitcoin acquisition and another $174 million for STRC repurchases, bringing combined spending on the two transactions to $249.7 million.

The absence of ATM sales meant Strategy did not issue common or preferred shares to replenish the cash used during the reporting period.

Deployable USD Cash fell to $1.05 billion as of Sept. 20, down nearly 20% from $1.30 billion a week earlier. The balance had stood at $1.44 billion on Sept. 7 and $1.61 billion at the end of August as repeated STRC repurchases drew down the account.

Strategy maintains USD Cash separately from its USD Reserve. The cash account can be used for Bitcoin purchases, capital management and other corporate purposes, while the reserve is primarily intended to cover preferred stock dividends and interest on outstanding debt.

Its USD Reserve declined to $5.04 billion from $5.10 billion during the latest reporting period after $57.4 million was used for preferred dividends and debt interest.

Combined, Strategy held approximately $6.09 billion in USD assets at the end of Sept. 20.

Strive expands Bitcoin treasury to 26,355 BTC Another publicly traded Bitcoin holder disclosed a purchase on Monday as Strive acquired 1,355 BTC, increasing its treasury to 26,355 BTC.

The purchase followed a series of recent additions to Strive’s balance sheet. The company had reached 25,000 BTC earlier this month after acquiring 469 BTC for approximately $36.6 million at an average price of $77,954 per coin. That transaction was funded through proceeds from its SATA preferred stock.

Strive had previously purchased 1,800 BTC for roughly $143 million in late August, taking its holdings to 23,156 BTC before subsequent acquisitions pushed the treasury higher.

Its latest filing places the company’s holdings at 26,355 BTC, keeping Strive among the largest publicly traded corporate Bitcoin holders.

ASST shares gained 6.44% to $32.03 in Monday premarket trading following the disclosure.

TLDR: The Senate vote fell short of the 60 votes needed, but the CLARITY Act is not formally rejected The SEC and CFTC plan to act under existing authority, and Cooper expects rules in six-plus months. Agency rules lack the permanence of legislation and remain open to court challenges and reversals. Bitcoin’s commodity status and spot ETF access limit its direct exposure and may lift BTC dominance. The CLARITY Act failed to advance in the U.S. Senate on September 15. U.S. crypto regulation now shifts from Congress toward federal agencies. The procedural vote fell short of the 60 votes required.

It was not a final rejection of the bill, and revisions and another vote remain possible. However, passage this year looks increasingly difficult.

Disputes over political conflicts of interest, stablecoin rewards, and investor protection stalled the effort. Bitcoin’s direct exposure appears limited, according to XWIN Japan.

Agencies Take the Lead Under Existing Authority Attention now turns to the SEC and CFTC and what they can do under existing authority. The CLARITY Act stall leaves the agencies as the main path for near-term rules.

The setback delays legislation, but it does not end U.S. crypto rulemaking. Congress leaves in early October, so little time remains for another vote.

SEC Chairman Paul Atkins said the agency will act within its statutory authority, with or without legislation. CFTC Chairman Michael Selig said the agency is ready to ship its rules. Both statements came after the CLARITY Act vote.

The SEC proposed Regulation Crypto Assets in August. The two agencies also coordinated through Project Crypto, including a joint interpretation in March. Charley Cooper of Ava Labs expects rules to need six-plus months before taking shape.

Industry Reaction and Limits of Agency Rules Agency action does not carry the same permanence as legislation. Atkins acknowledged this limit in August. He called legislation indispensable for rules that a future regulator cannot easily reverse. Such rules also remain open to court challenges and policy reversals.

Cooper spoke at the Avalanche Summit and cited yield-bearing stablecoins as one issue. He also pointed to the difficulty of moving partisan bills in a midterm year. He said the result was not a surprise. Still, he said the industry should not wait for permission.

Panelists at the Avalanche Summit called the CLARITY Act vote a setback, not a terminal failure. They represented the Digital Chamber, Blockchain Association, Crypto Council for Innovation, and DeFi Education Fund.

Many policy issues had been settled with congressional staff before political disputes took over in the final hours. Ethics conflicts remain one obstacle, and developer protections under the Blockchain Regulatory Certainty Act also became contentious.

XWIN Japan said Bitcoin’s commodity treatment and established spot ETF access offer more clarity. Many altcoins and DeFi services operate with less certainty by comparison.

Prolonged uncertainty could reinforce Bitcoin’s relative appeal, the analysis noted. That shift could lift BTC dominance. Meanwhile, the lack of legislation may slow real-world asset tokenization and other institutional projects. The work will continue either way.

Bitcoin’s decline also coincided with monetary tightening. Attributing it solely to the CLARITY Act would be misleading, the analysis said.

Near-term direction will likely depend on ETF flows, Fed expectations, Treasury yields, the dollar, and BTC exchange inflows.

BlackRock has said Bitcoin ETFs are increasingly serving as financial tools for large holders seeking collateral, options access and portfolio flexibility as Bitcoin volatility has fallen toward the 35–40 range.

Summary

BlackRock’s Jay Jacobs says Bitcoin volatility has compressed from roughly 80 to 35–40 amid participation. IBIT’s current creation basket is worth about $1.7 million, closely matching Jacobs’ stated threshold today. Jacobs says some large Bitcoin holders prefer ETF wrappers because shares can support collateralized borrowing. BlackRock now offers IBIT, ETHA, ETHB, and BITA across spot, staking, and income-focused crypto strategies. SEC rules have permitted in-kind creations and redemptions for authorized crypto ETP participants since 2025. The Pomp Podcast published a Sept. 17 interview with Jay Jacobs, BlackRock’s U.S. Head of Equity ETFs, covering the growth of the iShares Bitcoin Trust ETF, or IBIT, the development of crypto-linked options and BlackRock’s expanding Bitcoin and Ethereum product lineup.

During the interview, host Anthony Pompliano described Bitcoin as having moved from roughly 80 volatility to 35–40. Jacobs did not identify one cause, saying ETPs, options, deeper liquidity and an expanding base of long-term holders had all contributed to the decline.

JUST IN: BlackRock exec says Bitcoin ($BTC) volatility has been cut in half.

The shift? From "get-rich-quick narrative" to "collateral narrative."

Major institutions don't use the word collateral lightly.

That's institutional positioning language. pic.twitter.com/hV7H5BRhvj

— Wizzy (@WizzyOnChain) September 20, 2026 Bitcoin ETFs give large holders more financial options Jacobs said BlackRock initially expected institutional custody to be the main reason long-term Bitcoin holders would move coins into an ETF structure. Client conversations showed another use case: placing Bitcoin exposure inside conventional financial accounts made it easier to use that wealth within lending and derivatives markets.

According to Jacobs, holders with a large percentage of their wealth in Bitcoin sometimes want liquidity for property, vehicles or other spending without simply selling their exposure. An ETF position can potentially be pledged to lenders that accept ETF shares as collateral, while options can be used to hedge risk or generate income.

The distinction is important in the mechanics of the product. IBIT itself does not issue home or car loans, and BlackRock does not guarantee that an investor can borrow against its shares. A bank, broker or other lender determines whether it will accept ETF shares as collateral and on what terms.

Traditional lenders have already expanded such services. JPMorgan accepting Bitcoin as collateral, the bank has moved digital assets further into its secured-lending framework, following earlier efforts involving crypto-linked ETFs.

Jacobs characterized this ability to connect Bitcoin wealth with traditional lending, hedging and portfolio tools as part of the asset’s financialization.

IBIT’s structure now supports in-kind creation and redemption by authorized participants. The SEC approved in-kind processes for crypto ETPs in July 2025, reversing the cash-only approach initially required when U.S. spot Bitcoin ETFs launched.

SEC Chairman Paul Atkins said at the time that in-kind transactions could make the products “less costly and more efficient.”

In-kind transactions do not mean ordinary retail holders can walk into BlackRock and exchange a small amount of Bitcoin directly for IBIT shares. Creation and redemption activity takes place through authorized participants using large baskets.

BlackRock’s lates IBIT data put one creation basket at approximately $1.73 million as of Sept. 17, containing 22.65 BTC. Jacobs described the practical threshold during the podcast as roughly $1.5 million, after falling substantially from earlier levels.

BlackRock links lower Bitcoin volatility to deeper markets Pompliano asked Jacobs whether Bitcoin’s volatility decline came from Wall Street participation, ETFs or the derivatives market built around the asset.

Jacobs said BlackRock does not have a single explanation. ETPs created more ways to obtain exposure, while options gave market participants additional tools for complex positions and risk management. A deeper pool of participants and liquidity can reduce some price swings, in his view.

Long-term buyers form another part of BlackRock’s explanation. Jacobs said more investors now hold Bitcoin strategically, providing a different source of demand from shorter-duration traders.

His view on future volatility remains an assessment, not a guaranteed outcome. Bitcoin can still experience sharp moves, while derivatives and leverage can amplify volatility during periods of rapid liquidation.

Jacobs argued that lower volatility has not changed what BlackRock sees as Bitcoin’s underlying investment characteristics. In periods when investors worry about governments, geopolitical instability or fiat currency debasement, Bitcoin “should benefit,” he said, while noting that such conditions can place pressure on conventional assets.

The statement represents BlackRock’s investment view. It does not establish that Bitcoin will consistently rise when stocks or bonds decline, and correlations between asset classes can change across market cycles.

IBIT remained BlackRock’s largest crypto ETP by a wide margin. BlackRock reported approximately $59.87 billion in IBIT net assets as of Sept. 17, with 1.382 billion shares outstanding and a 0.25% sponsor fee. The product tracks the CME CF Bitcoin Reference Rate-New York Variant.

BlackRock is building staking and income products around crypto BlackRock’s current crypto strategy extends beyond simple spot exposure, though it remains concentrated on Bitcoin and Ethereum.

Jacobs said the firm has concentrated on the two assets because Bitcoin and Ethereum represent most of the digital-asset market by capitalization. BlackRock has not followed an approach of launching products for every large cryptocurrency.

For Ethereum, the firm offers ETHA for spot exposure and the iShares Staked Ethereum Trust ETF, ETHB, which combines ether price exposure with staking rewards from a portion of the trust’s holdings.

BlackRock’s official ETHB page showed net assets slightly above $1 billion as of Sept. 10. The product carried a 30-day staking rewards rate of 1.54% at that date, while the stated sponsor fee is 0.25%.

As crypto.news reported when BlackRock launched ETHB, the product began trading in March as BlackRock’s first U.S. Ethereum ETP incorporating staking.

BlackRock has taken a separate approach to investors seeking income from Bitcoin.

The iShares Bitcoin Premium Income ETF, ticker BITA, launched in June. The translated interview notes referred to the product as “BIDA,” but BlackRock’s official ticker is BITA.

BITA holds Bitcoin exposure through spot BTC and IBIT, then writes call options primarily on IBIT to collect premiums. BlackRock said when it launched the fund that the strategy generally targets calls covering approximately 25% to 35% of the portfolio.

Its product page showed a 13.25% distribution rate as of Sept. 9 and a 0.65% sponsor fee. Distribution rates can change and are not guaranteed returns.

Ascrypto.news previously reported in its analysis of BITA, selling covered calls can create monthly income but limits participation in some Bitcoin upside when prices rise sharply.

Jacobs said the strategy grew from requests by clients who wanted Bitcoin exposure but had portfolios structured around cash flow. Spot Bitcoin itself pays no coupon or dividend, leaving options premiums as one way an ETF can create distributable income.

AI now sits beside crypto in BlackRock’s thematic framework The interview moved from Bitcoin into BlackRock’s approach to artificial intelligence, where Jacobs described AI adoption as a macroeconomic variable increasingly relevant to U.S. equity markets.

He said BlackRock examines AI across utilities, power infrastructure, data centers, semiconductors, model developers, software and applications instead of treating it solely as a technology-sector theme.

Supply timelines differ sharply across that chain, according to Jacobs. He estimated that a new copper mine can require four to eight years to reach production and that semiconductor fabrication facilities can take roughly four years to become operational.

Those timing estimates were used to explain BlackRock’s investment framework, not to establish a forecast for commodity prices or AI-company returns.

The asset manager offers several products tied to different parts of that infrastructure. Jacobs pointed to its actively managed AI strategy BAI, infrastructure and power exposure, data-center real estate and copper-related investments as examples of how ETF structures can divide the AI supply chain into investable groups.

His comments on fund design extended to the number of ETFs available in the U.S. market. Jacobs said investors should examine holdings, structure, taxation and market-making arrangements instead of relying only on product names.

BITA provides one example of the structural differences he cited. The fund uses a partnership structure, so BlackRock says investors are expected to receive a Schedule K-1 for U.S. tax reporting. IBIT, despite offering exposure to the same underlying asset, does not use BITA’s covered-call income strategy.

BlackRock’s June launch materials said BITA can sell calls against approximately 25% to 35% of its Bitcoin exposure, while the remaining position retains exposure to Bitcoin price movements. Its options strategy is actively managed and can change as market conditions and portfolio positioning change.

US spot Bitcoin ETFs now manage roughly $102.5 billion in assets, holding approximately 6.29% of Bitcoin’s entire supply. That’s around 1.27 to 1.32 million BTC sitting in cold storage, effectively pulled from active circulation since these products launched in January 2024.

BlackRock is eating the competition alive BlackRock’s iShares Bitcoin Trust, known by its ticker IBIT, holds an estimated 693,000 to 786,000 BTC. That gives it a commanding share of the total ETF market, often exceeding 60% of all Bitcoin ETF assets.

IBIT has pulled in more than $60 billion in cumulative inflows since launch. Fidelity and Grayscale have struggled with net outflows during various periods. Grayscale’s converted GBTC product shed significant holdings as investors rotated into lower-fee alternatives. The cumulative net inflows across all US spot Bitcoin ETFs sit at approximately $55 billion, which means BlackRock alone accounts for a disproportionate chunk of the total capital that’s actually stuck around.

The supply squeeze no one can ignore Bitcoin has a hard cap of 21 million coins. Bitcoin held by ETFs doesn’t get lent out, staked, or traded on exchanges. It just sits there, backing the shares that investors buy and sell on traditional stock markets. Every BTC that enters an ETF’s custody is one fewer BTC available for spot market transactions.

According to current market valuations, reaching the 10% ownership threshold would require an additional $60.5 billion in ETF assets. That figure assumes Bitcoin’s price stays flat, which, if the supply dynamics play out as expected, it almost certainly wouldn’t. Rising prices would raise the cost of each incremental BTC, meaning the actual capital required to hit 10% could be substantially higher.

At current implied valuations, Bitcoin’s total market cap sits at roughly $1.63 trillion. The ETFs’ $102.5 billion share of that represents a level of institutional participation that would have seemed almost fantastical during the 2022 bear market, when the SEC was still blocking every spot ETF application that crossed its desk.

What institutional adoption actually looks like The spot Bitcoin ETF approvals in January 2024 gave pension funds, registered investment advisors, and wealth management platforms a compliant vehicle to gain Bitcoin exposure. No private keys, no custody headaches, no explaining to a compliance department why you need a Ledger wallet. Just a ticker symbol on a brokerage screen.

ETF inflows have shown resilience through multiple Bitcoin price corrections, with assets under management hovering around the $100 billion mark throughout September 2026. When Bitcoin’s price dips, the dollar value of ETF holdings drops mechanically, but the BTC held in custody doesn’t leave.

What happens from here With roughly 19.7 million BTC mined and millions likely lost or permanently dormant, the actively traded supply is already smaller than the headline number suggests. Removing another 4% from circulation to reach that 10% threshold would further compress the liquid supply at a time when demand channels, from ETFs to corporate treasuries to sovereign interest, continue to expand.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

U.S. spot crypto exchange-traded products recorded about $70.7 million in combined net outflows during the Sep. 14–18 trading week, as withdrawals from Ether funds outweighed demand for Bitcoin, Solana, and Hyperliquid products.

Summary

Spot Bitcoin ETFs ended the week with a modest $6.1 million net inflow after attracting $433 million on Friday. Spot Ether ETFs lost about $140.6 million, extending their weaker flow trend despite a $143.7 million Friday rebound. Solana ETFs took in $60.7 million, led by $47.6 million entering Bitwise’s BSOL on Friday. Hyperliquid ETFs recorded $3.1 million in weekly net inflows after three positive sessions offset Tuesday’s withdrawals. The flows came during a volatile week in which the Federal Reserve raised interest rates by 25 basis points, and Bitcoin later reclaimed $80,000. According to data from Farside Investors, the four U.S. crypto ETF categories tracked by the firm diverged sharply during the week. Bitcoin products recovered from $746.3 million of combined withdrawals on Tuesday and Wednesday, while Ether ETFs failed to erase their midweek losses.

Solana funds drew fresh capital in four of the five sessions, including their strongest day of the week on Friday. Hyperliquid products also finished positive, although their $3.1 million weekly gain remained small compared with flows into the larger crypto funds.

Bitcoin ETFs erase most weekly losses with $433M Friday inflow U.S. spot Bitcoin ETFs posted a net inflow of $6.1 million for the week after two large redemption days nearly pushed the group to a steep weekly loss.

The funds began with a $159.9 million inflow on Monday before losing $450.4 million on Tuesday and $295.9 million on Wednesday. Investors returned on Thursday with $159.5 million, followed by $433 million on Friday, the largest daily inflow of the week.

BlackRock’s IBIT led the weekly rankings with $120.6 million in net inflows. Fidelity’s FBTC followed with $79.9 million after drawing $310.7 million on Friday, the biggest single-fund inflow recorded that day.

Morgan Stanley’s MSBT added $13.2 million, while Franklin Templeton’s EZBC received $4.6 million. The gains were partly offset by $141.9 million in withdrawals from ARK 21Shares’ ARKB and $62.3 million from Grayscale’s GBTC. Bitwise’s BITB lost $2.7 million, and VanEck’s HODL shed $5.3 million.

The late reversal coincided with Bitcoin’s return above $80,000 on Friday. The asset had come under pressure earlier in the week as the Federal Reserve raised its target rate by 25 basis points to 3.75%–4.00%, its first increase in more than three years. Bitcoin later rallied as oil prices eased and crypto-linked stocks recovered.

Ether ETFs post $140.6M weekly outflow U.S. spot Ether ETFs recorded approximately $140.6 million in net withdrawals, making Ether the weakest of the four crypto ETF categories covered by Farside.

The group attracted $121.1 million on Monday but lost $142 million on Tuesday, $224.1 million on Wednesday and $39.3 million on Thursday. A $143.7 million Friday inflow reduced the weekly deficit without fully reversing it.

BlackRock’s ETHA accounted for a net weekly outflow of $56.1 million despite taking in $114.3 million on Friday. Fidelity’s FETH lost $25.9 million, while Bitwise’s ETHW shed $33.1 million.

Grayscale’s ETHE posted $31.4 million in withdrawals. VanEck’s ETHV lost $10.3 million, 21Shares’ TETH shed $1.9 million, and Invesco’s QETH recorded a $5.4 million outflow.

BlackRock’s ETHB and Grayscale’s lower-fee ETH fund moved in the opposite direction, taking in $7 million and $16.2 million, respectively. Farside’s daily totals contain rounded fund-level figures, which can produce small differences when individual entries are added.

Ether’s negative weekly result widened the gap with Bitcoin products. Bitcoin ETFs recovered nearly all of their midweek redemptions, while the Friday demand for Ether funds covered only part of the $405.4 million withdrawn across the prior three sessions.

Solana ETFs draw $60.7M as BSOL leads Friday demand Farside’s Solana ETF data showed $60.7 million in net inflows for the week, the strongest total among the four tracked crypto assets.

Solana funds received $11 million on Monday, $1.3 million on Tuesday and $800,000 on Wednesday. Thursday ended with no net movement before Friday’s inflow reached $47.6 million.

Bitwise’s BSOL generated $58.7 million of the weekly total. Grayscale’s GSOL contributed a net $2 million after a $3.9 million Monday inflow was partly offset by a $1.9 million withdrawal on Wednesday.

The remaining Solana products reported no net flows during the week. Friday’s $47.6 million allocation went entirely to BSOL, giving the Bitwise fund almost 97% of the category’s weekly net intake.

Hyperliquid ETFs add $3.1M during mixed week Hyperliquid ETFs ended the week with $3.1 million in net inflows. The products recorded no movement on Monday, followed by a $3.9 million outflow from Bitwise’s BHYP on Tuesday.

Flows turned positive during the rest of the week. 21Shares’ HYPG received $1.7 million on Wednesday, while Thursday brought $1.9 million into BHYP and $2.4 million into 21Shares’ THYP. BHYP added another $1 million on Friday.

The combined weekly data left Bitcoin funds close to flat, Ether products in net redemptions and the two smaller altcoin categories positive. Across all four categories, approximately $70.7 million exited on a net basis, with the $140.6 million Ether outflow exceeding the combined inflows into Bitcoin, Solana and Hyperliquid funds.

Morgan Stanley’s spot Bitcoin ETF has been on a shopping spree. The Morgan Stanley Bitcoin Trust, ticker MSBT, scooped up roughly 642 BTC worth approximately $50.6 million through a series of transfers from Coinbase Prime over a two-week stretch in September 2026. And in a detail that would make any fund manager jealous, the product has recorded essentially no net outflows since its April launch.

The MSBT has pulled in cumulative net inflows exceeding $538 million, pushing its total net assets to somewhere between $586 million and $635 million by mid-September. For a product that represents Wall Street’s old guard tiptoeing into Bitcoin territory, those numbers are more than a toe.

How the fund got here Morgan Stanley launched MSBT on April 8, 2026, making it the first spot Bitcoin ETF from a major US bank-affiliated asset manager.

The fund’s first month set the tone. MSBT pulled in $193.6 million in net inflows across its initial 30 days, with only a single recorded day of net outflows in its entire history.

The product charges a 0.14% expense ratio, which made it the cheapest spot Bitcoin ETF at launch. Coinbase Custody handles the actual Bitcoin storage, while BNY Mellon serves as administrator. The fund tracks the CoinDesk Bitcoin Benchmark Rate.

The September accumulation, visible through on-chain data, showed multiple transfers flowing from Coinbase Prime into the fund’s wallets. Roughly $50.6 million in Bitcoin moved across those transactions over about two weeks, suggesting steady creation of new ETF shares to meet ongoing demand rather than a single large institutional buy.

Who’s actually buying The majority of inflows have been driven by self-directed clients, not Morgan Stanley’s financial advisors. That distinction matters. Morgan Stanley manages trillions in client assets through its wealth management division, and if the advisor channel hasn’t fully engaged yet, the current numbers represent something closer to the floor than the ceiling.

Self-directed clients are essentially people who log into their Morgan Stanley accounts and buy the ETF on their own, without a financial advisor recommending it. These are investors who already know they want Bitcoin exposure and are choosing to get it through a familiar, regulated wrapper rather than buying crypto directly.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

The US Commodity Futures Trading Commission (CFTC) has today submitted a two-part crypto regulation proposal to the White House Office of Information and Regulatory Affairs (OIRA).

Filed under the identifier RIN 3038-AF80, the pitch is split into two sections, namely: 

Regulation Crypto Asset Transactions Regulation Crypto Asset MarketsAt the moment, the proposal’s specific details remain confidential as it undergoes initial White House review. 

The outline, however, suggests the likely introduction of a new category of exchange known as “crypto asset markets.” This would permit both existing and upcoming crypto exchanges to spot trade digital commodities such as Bitcoin (BTC) and XRP under CFTC oversight.

OIRA has up to 99 days to complete a review, after which the proposal will go back to the Commission for a vote. After that, it will enter the Federal Register, then undergo two distinct 60-day public commentary periods.

While the development is positive, a final binding rule is unlikely to take effect until late 2027.

No act, but regulation continues Notably, this is one among a string of actions displaying commitment by the CFTC and US Securities and Exchange Commission (SEC) to guide the crypto ecosystem following the recent Clarity Act rejection. 

Just yesterday, the CFTC announced its exception for crypto and prediction markets software providers from broker classification under certain conditions. Meanwhile, the SEC introduced a five-year “Innovation Exemption” rule, permitting on-chain trading of specific tokenized stocks.

Bitcoin defies bearish developments In addition to the Clarity Act downturn, the market is facing other potentially bearish developments such as the Fed interest rate hike, Japan’s possible dovish rates approach, the US Dollar Index (DXY) rising above the 100 psychological level, and oil prices surging past the $100 mark.

Bitcoin, however, has shrugged off the expected textbook downturn, revisiting the $80,000 mark. Moving in tandem is the overall crypto market cap, having risen 5.11% in the day to $2.76 trillion.

Story Ends Here

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Bitcoin regained momentum above $80,000, trading at $81,138 after a turbulent week marked by rising regulatory uncertainties, higher interest rates, and fresh security incidents impacting market confidence.

Senate setback leaves crypto regulation in limboLast week, the United States Senate failed to advance the CLARITY Act, legislation designed to provide clearer guidelines for the cryptocurrency industry. The procedural vote on H.R. 3633 ended with a split decision, 49-50, preventing the bill from moving forward.

This outcome reintroduced regulatory uncertainty for digital asset markets amid growing calls for comprehensive oversight. Market participants watched closely to assess whether the setback would trigger broader selling across major coins. While Bitcoin initially slid toward the mid-$75,000 range, selling pressure later faded as uncertainty was gradually absorbed by the market.

Crypto observers identified three central themes: the setback in regulatory clarity, expectations of rising interest rates, and ongoing worries about security. These factors combined to dominate market sentiment and social media discussions as Bitcoin retreated to mid-$75,000, yet a sharp rebound above $80,000 indicated resilience among buyers.

Federal Reserve rate hike adds new pressureThe Federal Reserve raised its policy rate by 25 basis points to a range of 3.75% to 4.00%. This was the first incremental increase since July 2023 and signaled a renewed focus on tackling inflation. Analysts said higher rates could pressure crypto and other risk assets by tightening liquidity and offering investors more attractive yields in traditional instruments.

Market data from CoinGecko showed daily trading volume for Bitcoin at $42.20 billion. Bitcoin notched a 6.05% gain over 24 hours and a 4.3% rise for the week, underlining the asset’s volatile reaction to macroeconomic developments.

Santiment Intelligence, a cryptocurrency analytics firm, reported that the convergence of rate hikes and policy setbacks drove substantial social chatter in trading communities.

Beyond regulatory uncertainty and macroeconomic shifts, several security-related incidents further clouded sentiment. The Symbiosis Bitcoin Bridge exploit allowed attackers to generate $46 billion in fake syBTC tokens, resulting in losses totaling $336,000. Separately, digital bank Revolut experienced a breach exposing sensitive customer information linked to their crypto services.

Mini dictionary: Symbiosis Bitcoin Bridge, a decentralized protocol that enables the transfer of Bitcoin and other assets across blockchains. Exploits on such bridges can result in the creation of fraudulent tokens and substantial financial losses for protocol users.

After a sharp drop, market analysts noted that large traders may have stepped in as prevailing fear reached extreme levels, contributing to Bitcoin’s recovery above $80,000. However, these inferences are based on market analysis rather than confirmed evidence of institutional buying.

Analysts highlight Bitcoin’s key technical levelsTechnical analysts pointed to several critical price areas shaping Bitcoin’s short-term outlook. Crypto Patel highlighted an 8-hour bullish flag chart pattern, noting that a breakout and close above $80,000 could pave the way for a run toward $82,250 and potentially $98,000. Conversely, Patel warned that a failure to maintain support above $75,000 could send Bitcoin to $71,000 or lower.

Another prominent trader, KillaXBT, suggested hedging exposure around $82,000 to $84,000, expressing caution toward further upside without consolidation. KillaXBT identified $85,000 to $86,000 as a pivotal resistance area; a sustained move above this could trigger a shift in focus to the $88,000–$95,000 range.

Key levelEvent/ActionTarget/Range$75,000Support breakdown$71,000–$68,000$80,000Bullish flag breakout$82,250–$98,000$82,000–$84,000Potential hedge/ResistanceIntermediate range$85,000–$86,000Sustained move required$88,000–$95,000Analysts agreed that these levels reflect individual trading strategies rather than fixed paths for the market. Bitcoin’s direction likely depends on whether price stabilizes above $80,000 or faces renewed selling driven by adverse headlines and economic risks. The recent price action suggests that negative news can accelerate declines, but a positive reversal may follow when sellers diminish and capital flows shift back into the market.

After the $320 million hack, which shook the crypto community, Liquid Network has largely returned to normal operations. However, one of the main functions, which involved converting LBTC back into Bitcoin [BTC] through peg-outs, is still suspended.

But the good news here is that block production and regular transactions have been running normally since 10th September. This recovery has given users the second chance to move LBTC across the network.

With the step-by-step recovery process, users can now use exchanges, wallets, and other ecosystem services for their liquid-related functions. However, the caution bubble still remains, as not all the Bitcoin involved in the incident has been recovered.

Services resumed after the recovey processes According to the 17th September update, several liquid ecosystem services have resumed activity. Mifiel, for example, has resumed issuing and processing its digital promissory notes, with its batches giving normal confirmation.

Aqua has also restored liquid asset transfers and peg-ins. Moreover, Aqua’s new Indra swap feature is now allowing users to swap between LBTC and Bitcoin on the Lightning Network, although liquidity is currently limited.

This along with other wallet providers are also making a comeback, but LBTC-related services that ultimately require a peg-out remain restricted. This makes sense because those routes require users to eventually move BTC out of Liquid.

Bitcoin recovery is slow but not weak In other words, everything boils down to Bitcoin recovery. So, for those unaware, during the the 6th September incident, roughly 4,000 BTC was withdrawn.

Of that, around 3,400 BTC has since been returned to the Federation reserve, leaving approximately 600 BTC still unreturned.

What’s notable in this recovery milestone is that the technical root cause of the exploit has now been identified. The exploit path has been decoded, and an immediate fix has already been released through Elements v23.3.4, the software underlying Liquid. 

All in all, it can be said that for a full recovery, Liquid will ultimately need to restore bridge functions, peg-outs, and exchange support so users can move LBTC and BTC normally again.

Final Summary The exploit resulted in 95% of its Federation peg wallet being withdrawn in a single transaction. Block production and regular transactions have been running normally since 10th September. 

US spot Bitcoin exchange-traded funds (ETFs) reversed a two-day streak of heavy outflows on Wednesday, registering $159.5 million in net inflows as Bitcoin prices climbed back above $77,000.

ETF Flows Turn Positive After Heavy WithdrawalsThe recent inflow contrasts with the withdrawals seen earlier in the week, when spot Bitcoin ETFs saw $450.4 million leave on September 15 and another $295.9 million on September 16. Over those two sessions, approximately $746.3 million exited the funds before institutional interest appeared to return on September 17.

BlackRock’s iShares Bitcoin Trust (IBIT), one of the most prominent spot Bitcoin ETFs in the US market, led the resurgence by bringing in $183.7 million in new capital. In comparison, Fidelity’s FBTC experienced $16.6 million in withdrawals during the same period, and VanEck’s HODL reported a loss of $7.6 million. Other funds saw little significant movement.

ETFNet Flow (Sept. 17)BlackRock IBIT+$183.7 millionFidelity FBTC-$16.6 millionVanEck HODL-$7.6 millionAfter combining the figures from September 15 to 17, spot Bitcoin ETFs still posted approximately $586.8 million in net withdrawals over the three-day period. Despite the lingering negative balance, the return of inflows points to ongoing institutional interest following a rapid sell-off at the start of the week.

Despite recent turbulence, the re-emergence of positive flows in spot Bitcoin ETFs alongside the Bitcoin price recovery suggests institutional demand remains present.

Bitcoin’s price rallied alongside the ETF inflow, gaining about 1.5% over the past 24 hours. The cryptocurrency advanced from around $76,400 to approximately $77,500, with a brief move toward $77,600 after spending much of the prior session trading below $77,000.

This rebound followed a decline to the $75,000-$76,000 range, which occurred after the CLARITY Act failed to progress in the Senate. The price movement highlighted renewed investor confidence and risk appetite in the market.

Market Sentiment and Macro FactorsThe broader improvement in sentiment was also visible in traditional markets. US equity indices climbed on Thursday, with the S&P 500 increasing by 1.14% and the Nasdaq gaining 1.69%. The rally came as Treasury yields eased and oil prices pulled back.

Meanwhile, the Federal Reserve raised its policy interest rate by 25 basis points to a range of 3.75% to 4%, marking its first such move in over three years. Alongside the rate hike, the central bank signaled potential for further tightening in an effort to control inflation.

In contrast to Bitcoin, US spot Ethereum ETFs registered approximately $39.3 million in net outflows during the same September 17 session. The divergence between Bitcoin and Ethereum flows indicated that the latest recovery was focused specifically on BTC products rather than a broad return to cryptocurrency funds.

BlackRock, which managed the largest inflow among the ETFs, is a leading global asset management company with investments spanning equities, bonds, alternatives, and now digital assets through its iShares Bitcoin Trust.

Mini dictionary: CLARITY Act, a legislative proposal in the US Senate intended to provide clearer regulations and regulatory frameworks for digital assets and blockchain technology in the United States.

Zest Protocol’s new levered Bitcoin staking vault is now live on Stacks. The zvstBTC vault, the protocol’s first automated Stacks Vault product, marks a notable step in the slow but steady effort to make Bitcoin actually productive in DeFi.

The concept is straightforward in theory, even if the plumbing underneath is anything but. Users deposit Bitcoin assets like stBTC or BTC into the vault and receive zvstBTC shares in return. The vault then runs a leveraged loop: posting stBTC as collateral in Zest’s lending market, borrowing sBTC against it, and recycling those borrowed assets back into staking positions to amplify the base yield.

How the yield math works The unlevered staking rate for stBTC, the liquid staking token issued by Stacking DAO, sits at roughly 2.6% APY. Zest’s vault aims to stretch that to 6-8% APY through its looping strategy.

The gains don’t arrive as separate token distributions. Instead, they accrue directly into the vault’s net asset value, meaning the price of each zvstBTC share gradually increases over time.

Initial deposits are capped at 10 BTC. That’s a deliberate constraint, not a limitation born of low demand. Capping early capacity lets the protocol stress-test the strategy with manageable risk before opening the floodgates.

Zest’s track record and the trust question Zest Protocol’s Stacks lending market has maintained a peak total value locked of over $100 million. More importantly, it has reported zero bad debt since launching in March 2024. The vault’s architecture relies on two key assets within the Stacks ecosystem: stBTC, issued by Stacking DAO, provides the base staking yield and serves as the primary collateral, while sBTC functions as the borrowable asset that enables the leverage loop.

What this means for Bitcoin DeFi A 6-8% target APY on Bitcoin is competitive with many Ethereum-based staking products. The Stacks network settles directly to Bitcoin’s base layer, which matters for the subset of investors who care deeply about where their trust assumptions actually live.

Zest has also introduced STX token incentives to encourage broader participation in the vault ecosystem.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Zcash (ZEC) surged nearly 23% in the past 24 hours, reaching an intraday high of approximately $1,389 on Thursday. This sharp rally far outperformed Bitcoin, which gained less than 1% and traded around $76,000 amid largely subdued market conditions.

Paradigm Reveals ZEC HoldingsThe rally in Zcash came after Matt Huang, co-founder of Paradigm, shared that the crypto investment firm holds ZEC in its portfolio. He described Zcash as a “private complement to Bitcoin,” attracting increased attention to the privacy-focused blockchain project.

Paradigm is a notable venture firm that invests in major cryptocurrency and Web3 projects, with a track record of backing some of the largest initiatives in the digital asset space.

Zcash’s surge coincided with Huang’s public disclosure, bringing renewed focus to ZEC’s role in privacy-oriented financial transactions as well as its perceived value proposition within the broader cryptocurrency ecosystem.

Highs Near $1,400 as Market RecoversAmid the rally, Zcash traded around $1,369 and briefly approached the $1,400 mark, according to pricing data. The surge occurred against the backdrop of a stabilizing crypto market following the latest Federal Reserve interest rate decision, which initially sparked some volatility.

While Bitcoin rebounded from its post-Fed dip, it remained relatively flat compared to Zcash’s rapid rise.

Coin24h ChangeIntraday HighCurrent PriceZcash (ZEC)+23%$1,389$1,369Bitcoin (BTC)< 1%$76,000$76,000The Zcash rally also followed a significant governance vote related to its upcoming NU7 network upgrade. Coin holders expressed strong support for reducing Zcash’s block time from 75 seconds to 25 seconds, which, if enacted, would allow for faster transaction processing across the network.

Additionally, 98.9% of voters favored maintaining Zcash’s halving schedule. Approximately 2.4 million ZEC participated in this poll, signaling significant community engagement but not immediate implementation of the proposals.

Mini dictionary: NU7, or Network Upgrade 7, is the next significant protocol update proposed for Zcash, aiming to improve performance and support community-chosen changes such as block time reduction.

The vote’s distinction lies in its consultative nature; it gauges sentiment but does not trigger automatic upgrades. Implementation will require further coordination among developers and validators.

Community support for both the proposed block time reduction and halving schedule demonstrates active engagement with Zcash’s future direction, though the changes are not yet live.

Outlook and Institutional InterestThe increased visibility from Paradigm’s endorsement, paired with a planned issuance model resembling Bitcoin’s halving events, has sparked renewed discussion about Zcash’s potential scarcity value. This narrative comes as Bitcoin’s institutional flows remain volatile, with ETF outflows in recent weeks highlighting market sensitivity.

For Zcash, the combined momentum from institutional acknowledgment and community-driven technical proposals has positioned it as a standout performer among major cryptocurrencies in the current market cycle. Market observers are now watching to see if ZEC can solidly move beyond the $1,400 level in the days ahead.