Daily Crypto Signals: Bitcoin Holds Above $114K, Ethereum ETFs Draw $547M Amid Regulatory Developments
Bitcoin maintained its position above $114,000 despite a brief flash crash to $112,600, while Ethereum struggled below $4,300 even as spot
Quick overview
- Bitcoin remains above $114,000 despite a brief drop to $112,600, while Ethereum struggles to maintain levels above $4,300 amidst significant institutional interest in spot ETFs.
- The SEC is shifting its regulatory stance, allowing blockchain-based stock trading and confirming that DePIN tokens are not classified as securities.
- Ethereum saw a notable $547 million in institutional inflows for spot ETFs, indicating renewed confidence in its long-term prospects despite a decline in on-chain activity.
- Solana experienced a dip to $204.17 but rebounded above $209.50, with institutional investors showing continued interest amid broader market volatility.
Bitcoin BTC/USD maintained its position above $114,000 despite a brief flash crash to $112,600, while Ethereum ETH/USD struggled below $4,300 even as spot ETFs attracted $547 million in institutional inflows. The SEC signaled a major shift in crypto regulation with plans to permit blockchain-based stock trading and confirmation that DePIN tokens fall outside securities laws.
Crypto Market Developments
On Tuesday, the cryptocurrency market was quite volatile, just like the stock market, since investors were worried about a possible US government shutdown. Even though Bitcoin dropped to $112,656 during the day, the major indices, like the Dow Jones, S&P 500, and Nasdaq, all ended the day in the green, with the Dow reaching a new all-time high. Crypto markets did the same thing, and Bitcoin went back up to almost $114,400.
As the SEC laid out new rules for digital assets, it became clear that the regulatory landscape was changing in important ways. The organization is said to be working on a way for equities that are registered on the blockchain to trade on cryptocurrency exchanges. This would be a big step toward combining digital asset technology with traditional financial institutions. This plan would let investors purchase and sell stock tokens, which are digital versions of publicly traded corporations, on crypto platforms that have been approved.
The SEC also sent out an unusual no-action letter saying that Decentralized Physical Infrastructure Network (DePIN) tokens are not subject to its rules. SEC Commissioner Hester Peirce said that DePIN “differs fundamentally from the capital-raising transactions Congress charged this Commission with regulating.” This made things much clearer for blockchain projects that focus on infrastructure. At the same time, Visa started a stablecoin experiment at SIBOS 2025. This let some partners use Circle’s USDC and EURC as pre-funded assets for quick cross-border payments.
Bitcoin Holds Above $114,000
Even while Bitcoin held steady around $114,000, professional traders were more cautious in the derivatives markets. The Bitcoin skew metric, which shows the difference in price between put options and call options, hit 5% on Tuesday before going back up to 8%. This means that more people want to protect themselves against losses. This number usually falls between -6% and 6% when things are neutral. Traders were upset that they couldn’t get back the $115,000, especially as gold was still going up, trading just 0.6% below its all-time high.
But spot Bitcoin exchange-traded funds gave a clear positive signal, with $518 million in net inflows on Monday. This high demand from institutions came at the same time when public firms including Strategy, MARA Holdings, and Metaplanet continued to build up their Bitcoin reserves as part of their long-term treasury strategies. There was no increase in bearish demand for Bitcoin options, and premiums for put options on Deribit were lower than those for call options. Analysts say that the cautious positioning in derivatives markets is more about general worries about the economy, like bad US job market data and fears of a recession, than about Bitcoin itself.
Ethereum Struggles with $4,200 Level
Ethereum had trouble keeping up its pace above $4,200 on Tuesday, even though there was record-breaking institutional interest in spot Ethereum ETFs. Monday’s $547 million in net inflows was a big change from the pattern of the previous week. Analysts saw it as a sign that people are starting to believe in ETH’s long-term future again. The influx came at the same time as BitMine Immersion bought 234,800 ETH, bringing the company’s total holdings to more than $10.6 billion. This is part of Chairman Tom Lee’s plan to get 5% of the total Ether supply.
Corporate accumulation and institutional positioning were very different from the drop in onchain activity, which probably hurt short-term price performance. According to Nansen data, the number of transactions on the Ethereum network declined by 16% and the fees reduced by 12% in the last 30 days.
In contrast, fees on other networks like BNB Chain went up by 95% during the same time. Even Nevertheless, Ethereum’s reputation got a boost when Consensys and SWIFT teamed up to create a prototype for cross-border payments utilizing tokenized assets. More than 30 financial institutions worked on this project. Ethereum is still the second-most popular institutional digital asset behind Bitcoin, with $22.8 billion in spot ETF holdings and $55.6 billion in futures open interest.
Solana Dips But $200 Support Holds
On Tuesday, Solana SOL/USD saw a quick but big drop to $204.17, which got rid of retail leveraged long bets that had entered at Monday’s range high. The drop was in line with what was happening in other crypto markets as political gridlock over US government funding shook investor confidence. However, data from Hyblock showed that institutional-sized companies, or those in the 1 million to 10 million anchored CVD cohort, jumped in to buy the drop. This shows that larger market players still have faith. SOL went back up to trade above $209.50, getting back to its median range from the weekly open, even if it was still down 1.38% for the day.
The negative financing rate that came about because of the liquidations made it easy for both retail and professional traders to get in on the action by opening new spot and leveraged long bets. Aside from the immediate reaction to worries about the government shutting down, Solana traders seem to be paying attention to a number of encouraging factors in the larger crypto market.
The SEC has until October 10 to make decisions on a number of spot Solana ETF applications. This is one of the most important things. Traders think that Bitcoin’s expected rise, which is based on forecasts of lower interest rates from the Federal Reserve and a possible Trump-friendly nomination of a new Fed chair, will lift altcoins like SOL. The market’s fast recovery after Tuesday’s flash crash implies that traders see present prices as a chance to buy rather than the start of a long-term drop.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save