Bitcoin sidechain Liquid Network has paused operations after supposed white-hat hackers withdrew 4,000 BTC, worth around $320 million, from its federation wallet.

White-hat hackers are cybersecurity professionals who detect vulnerabilities in software, hardware, or networks and warn organizations about potential security risks.

Liquid Network Pauses Operations

The Bitcoin sidechain released a statement on X confirming the incident, adding that it was working with Blockstream, its technology partner, to contact the hackers in question through an on-chain signed message. However, Liquid Network has not yet identified the hackers or disclosed whether the funds would be returned.

“We are aware of a security incident on @Liquid_BTC. Purported white-hat hackers have withdrawn ~4,000 BTC (~$320 million) from the Liquid Federation wallet. The @Blockstream team is working on contacting them on-chain with a signed message.”

The hackers withdrew around 95% of Liquid’s Bitcoin reserves. The sidechain’s Bitcoin reserves stood at 4,200 BTC before the security incident.

Incident Details

The statement also explained how the Bitcoin was withdrawn. According to Liquid Network, the hackers withdrew the funds using the SideSwap PAK, or Peg-Out Authorization Key. The statement clarified that the network was not compromised, but it did not disclose the vulnerability that allowed the white-hat hackers to withdraw the BTC. Following the withdrawal, the hackers reached out to the Liquid Network in an on-chain message linked to the transaction.

“We are whitehats. Contact us on-chain.”

It also notified cryptocurrency exchanges, with deposits and withdrawals of LBTC, the sidechain’s Bitcoin-backed token, already suspended. The protocol also temporarily disabled bridge nodes to prevent new transactions from being submitted to the network.

“Exchanges have been notified and have already paused (or will pause) LBTC deposits and withdrawals. Other Liquid assets such as USDT, DePix, and RWAs are unaffected by this security incident. Bridge nodes have been temporarily disabled, so no new transactions can be submitted to the network. Effectively, the Liquid sidechain is paused until this issue is resolved.”

The Liquid Network warned that wallets may also be impacted, but said the incident did not affect other assets such as USDT, DePix, and real-world assets.

Crypto Security Back In Focus

Liquid Network is a Bitcoin sidechain facilitating faster and confidential transfers. It also enables the issuance of digital assets. BTC in Liquid is represented by the LBTC token, with the underlying asset secured by federation operators. The protocol is used by several platforms for quick settlements, primarily because the primary Bitcoin blockchain often faces network congestion.

The incident, part of a string of hacks that have hit the industry, has put crypto security back in the spotlight. A Crypto.com-linked lending platform was drained of $6 million by a hacker on August 31. The recent Coldcard exploit also shook the foundations of digital asset custody, raising serious questions about cold wallets, considered the safest way to store crypto.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

El Salvador President Nayib Bukele has rejected reports that the country transferred its Strategic Bitcoin Reserve to a private operator as part of its agreement with the International Monetary Fund (IMF).

The denial came after the IMF reached a preliminary agreement with El Salvador that will unlock $140 million in additional funding under a broader $1.4 billion financing program.

Bukele said the transaction involved shares in the government’s Chivo wallet rather than the country’s Bitcoin holdings, pushing back against reports that the reserve itself had been handed to a private entity.

Key Takeaways

• Nayib Bukele says El Salvador did not transfer its Strategic Bitcoin Reserve to a private operator.
• The president said only shares in the Chivo wallet were transferred.
• The IMF has agreed to release another $140 million as part of its $1.4 billion program with El Salvador.
• The country’s Bitcoin holdings have risen from about 6,224 BTC in June 2025 to more than 7,764 BTC.
• The IMF says recent growth in the reserve came from private donations rather than government spending.

Bukele Draws a Line Between Chivo and El Salvador’s Bitcoin Reserve

Bukele responded to reports about the transfer on Friday, saying the government had not handed over control of its strategic Bitcoin holdings.

“The only thing that was transferred were Chivo’s shares … and NOT the Strategic Bitcoin Reserve,” Bukele said in a post on X.

The comments came shortly after the IMF outlined changes involving El Salvador’s state-backed Chivo wallet. The Fund said majority ownership and operational control of the wallet had been transferred to a private operator.

The government, however, continues to hold a minority stake and retains responsibility for the custody of customer assets.

The distinction is important because Chivo and the Strategic Bitcoin Reserve represent separate parts of El Salvador’s cryptocurrency strategy.

El Salvador’s Bitcoin Holdings Continue to Attract Attention

El Salvador became the first country to adopt Bitcoin as legal tender in 2021, introducing it alongside the US dollar. The policy later became a central issue in negotiations with the IMF.

The government removed Bitcoin’s legal tender status in January as part of the conditions surrounding the IMF program.

Despite the policy changes, El Salvador’s Bitcoin holdings have continued to increase. The country’s reserve stood at around 6,224 BTC at the end of June 2025 and has since risen to more than 7,764 BTC.

That represents an increase of roughly 1,540 BTC.

The size of the increase has raised questions because Salvadoran officials have continued to promote the idea of adding one Bitcoin per day to the national reserve.

IMF Says Recent Bitcoin Growth Came From Donations

Meanwhile, the

DBS and Citi have completed what they describe as the first weekend tokenized cross-border payment between Singapore and the United States, using tokenized deposits routed through Swift’s Digital Ledger. The transaction was settled within minutes, positioning blockchain-enabled payment rails as a potential solution to the long delays and limited operating hours associated with conventional cross-border banking workflows.

DBS said it finalized the transfer using tokenized deposits on Swift’s system, enabling activity outside standard banking schedules. The group called the speed of settlement a “significant improvement,” contrasting it with the industry norm—often up to two business days—for traditional cross-border transfers.

Key takeaways

• DBS and Citi executed a Singapore-to-US cross-border payment over the weekend using tokenized deposits on Swift’s Digital Ledger.
• Settlement reportedly took minutes, improving on typical traditional cross-border timelines of up to two business days.
• The test highlights how major banks are experimenting with blockchain-based messaging/settlement infrastructure while keeping deposits within regulated banking channels.
• It builds on earlier Swift-led pilots involving other large banks, including HSBC and Standard Chartered.
• Citi is also pursuing a separate roadmap for tokenized deposit networks via The Clearing House, with plans discussed for 2027.

Weekend settlement becomes the latest proof point for tokenized rails

The DBS-Citi payment underscores a practical problem tokenization aims to address: cross-border transfers often remain bound by banking hours and operational processes that can stretch timelines well beyond a single business day. By running the transaction through Swift’s Digital Ledger and using tokenized deposits, the banks were able to complete the payment during a weekend—when many traditional settlement and processing paths are less active.

According to DBS’s announcement, the workflow relies on tokenized deposits rather than a full move to cryptocurrency custody or retail-style blockchain transfers. That distinction matters for investors and market participants watching these initiatives: it signals the direction large institutions are taking—using blockchain-style settlement mechanics to accelerate payment completion while preserving deposit-based structures familiar to regulated banking systems.

DBS emphasized that the deposit was finalized in minutes, framing it as a notable improvement over the “as long as two business days” timeframe often experienced in traditional cross-border channels. For banks and corporates alike, reducing idle time between initiation and settlement can improve cash management and operational efficiency, especially when payments are time-sensitive.

Swift’s Digital Ledger pilots: from readiness to expanding bank participation

This latest settlement follows earlier milestones tied to Swift’s push into tokenized deposits. In August, Standard Chartered and HSBC completed what was described as the first live tokenized cross-border transaction on Swift’s blockchain ledger.

Before that, Swift said its blockchain-based ledger was ready for initial use and that it was preparing to pilot tokenized cross-border payments with 17 major banks. In July, reporting noted that the pilot group included institutions such as Citi and DBS, alongside HSBC, BNP Paribas, UBS, ANZ, and Standard Chartered. Earlier coverage also tied the effort to Swift’s broader strategy for modernizing financial messaging and settlement paths.

What’s notable in the DBS-Citi weekend test is the maturity implied by moving beyond pilot-style milestones toward transactions that address real-world timing constraints. If weekend settlement becomes repeatable at scale, it could change how banks and payment operators think about cut-off times and settlement certainty for international transfers.

Citi’s parallel plan for a tokenized deposit network

DBS’s transaction also arrives amid other institution-level roadmaps for tokenized deposit infrastructure. Citi CEO David Watson, as reported by The Wall Street Journal, discussed a separate initiative in which a group of major US banks—including Citi—aim to launch a tokenized deposit network in the first half of 2027.

Watson linked the effort to The Clearing House, the US payments and clearing operator owned by banks. This suggests the industry is not placing all its bets on a single technology path. Instead, it appears to be building multiple layers: one focused on interoperable cross-border messaging and settlement, and another focused on domestic deposit token networks designed for broader interbank transfer capabilities.

For readers tracking the direction of crypto-adjacent finance, the coexistence of these efforts is important. Swift’s Digital Ledger work centers on cross-border settlement mechanics through a messaging network, while the Clearing House plan points toward a more US-centric network of tokenized deposits. Together, they reflect how large institutions may pursue both interoperability and network effects as they move from prototypes to operational systems.

Ongoing collaboration between major banks on tokenization frameworks

The industry momentum also includes collaboration frameworks between banks aimed at establishing compatibility across deposit token ecosystems. In November 2025, reporting highlighted that DBS and JPMorgan unveiled plans to develop a blockchain-based tokenization framework enabling onchain transfers between their deposit token environments, with the stated goal of moving toward an industry standard for cross-bank payments.

While these announcements do not guarantee full interoperability across all banks or across different tokenization platforms, they do indicate a shared theme: large financial institutions see tokenization as a way to reduce friction in transfers without necessarily replacing deposits with entirely new asset classes. The closer the industry gets to standardized frameworks, the easier it becomes for participants to connect systems and reduce settlement bottlenecks.

DBS’s Monday announcement tied the weekend transaction directly to the benefits of 24/7 settlement ability, reinforcing the idea that the value proposition is operational rather than speculative.

What to watch next

As Swift and major banks move from pilot milestones to repeatable live usage, the key question for the market is whether tokenized cross-border payments can sustain faster settlement reliably at scale—especially across weekends and holiday periods—while aligning with longer-term plans for tokenized deposit networks. The next updates from banks and Swift will likely focus on throughput, operational controls, and whether improvements in minutes translate into broader day-to-day savings for international payments.

Roughly 4,000 BTC, worth about $320 million left Blockstream’s Liquid Federation wallet after it was hacked on Sunday afternoon.

Eleven of the federation’s 15 keys signed the transaction, even though the Liquid Network tokens that redeemed the BTC should never have existed. 

The attacker’s address, which still held 3,998 BTC by Monday morning, published an OP_RETURN message reading, “we are whitehats. contact us on chain.”

An hour later, a second address answered, “Please contact [email protected].” A follow-up message from the hacker allegedly offered a Signal handle for further communication.

SideSwap, whose peg-out service processed the order, blamed the incident on faulty Liquid Bitcoin (LBTC) originating from a third-party “Elements bug,” denying responsibility of “any SideSwap system.”

Liquid Network confirmed the incident shortly after 4:25pm New York time, saying, “Effectively, the Liquid sidechain is paused until this issue is resolved,” with bridge nodes disabled and exchanges suspending LBTC deposits and withdrawals.

Mempool.space, itself a Liquid federation member, logged “an unauthorized -4019 BTC withdrawal” in its real-time audit of federation holdings.

Liquid.net, the Liquid Network’s official dashboard, didn’t immediately reflect the loss. Mempool.space’s Liquid.network promptly showed the loss.

Bitcoin Core contributor Antoine Poinsot further supported Mempool.space’s position, noting, “Liquid block 4’050’336 was rejected by @mempool but accepted by @Blockstream.

“This is the block that contains the peg-out transaction.”

Ethereum price traded near $2,493 on Sept. 7 after failing to hold above $2,500, while weakening momentum and nearby liquidation clusters kept ETH within a narrow range.

According to data from crypto.news, Ethereum (ETH) price was trading near $2,493, within a 24-hour range of approximately $2,473 to $2,533. The daily chart showed ETH down about 0.9%, with sellers appearing after the price reached $2,536.

The pullback followed a sharp rally in August that lifted Ethereum from below $1,900 to above $2,500. ETH has since moved sideways as buyers struggle to extend the breakout and sellers defend the upper end of the new range.

Ethereum price loses momentum below $2,537

The daily Bollinger Bands place Ethereum’s middle band near $2,448, while the upper and lower bands sit around $2,578 and $2,319, respectively. ETH remains above the middle band, keeping the broader daily structure constructive despite the latest decline.

However, the price has repeatedly failed to establish a daily close above the $2,530–$2,550 region. Another rejection from that area would leave ETH exposed to a retest of the Bollinger Band midpoint near $2,448.

The daily relative strength index has fallen to 63.62 from overbought territory reached during the August advance. Its signal average stands higher at 68.23, indicating that momentum is fading even though the RSI remains above the neutral 50 level.

The indicator does not yet confirm a bearish reversal. Still, the lower RSI reading suggests buyers would need a decisive move above $2,537 to restore momentum.

A daily close above that level would bring the upper Bollinger Band near $2,578 into focus. Clearing both barriers could allow Ethereum to test the psychological $2,600 level, where the liquidation data shows another pocket of leveraged positions.

Weak ADX keeps ETH inside a short-term range

Ethereum’s 4-hour chart reinforces the loss of directional momentum. ETH traded around $2,493, almost level with the Supertrend resistance near $2,495.

The Supertrend support line remains well below the market at approximately $2,423. That level has risen steadily since Ethereum’s August breakout, meaning the 4-hour structure has not yet turned bearish despite the price moving below the active resistance line.

The average directional index stood at 15.69. An ADX reading below 20 generally points to a weak trend, which supports the view that Ethereum is consolidating rather than beginning a strong directional move.

Repeated swings between roughly $2,450 and $2,530 also show that neither side has gained control. Buyers have defended pullbacks toward the lower part of this range, but rallies continue to lose strength near $2,500–$2,530.

A break below $2,475 would place the 4-hour Supertrend support at $2,423 in view. The three-day CoinGlass heatmap shows the largest nearby downside liquidity concentration around $2,425–$2,455, increasing the importance of that region.

Losses below $2,423 could expose the round-number support at $2,400, where another visible liquidity band has formed. ETH would need to remain below the Supertrend level for the short-term structure to shift more clearly in favor of sellers.

ETH liquidity sits on both sides of $2,500

The 3-day CoinGlass heatmap chart shows Ethereum positioned between two groups of liquidation liquidity.

The strongest nearby downside band appears around $2,430, followed by another cluster around $2,450–$2,460. On the upside, liquidity is concentrated between approximately $2,520 and $2,550, with additional positions building near $2,600.

These clusters do not guarantee where Ethereum will move. They identify areas where leveraged positions may be forced to close if the price reaches them, which can add speed to an existing move.

Analyst Ted Pillows said most of Ethereum’s nearer upside liquidity had already been cleared, leaving a smaller cluster around $2,600. He also identified much larger long-position liquidity between $1,800 and $2,200, although such distant levels are not part of ETH’s immediate trading range.

Separately, Ali Martinez identified $2,475 as an important on-chain support zone. Citing Glassnode data, Martinez said approximately 2.86 million ETH previously changed hands around that price.

Martinez placed the next possible upside objective near $2,722 if the support holds. He also identified heavy supply between $2,723 and $2,822, where more than 10 million ETH had previously moved, potentially creating resistance if Ethereum reaches that region.

Ethereum must reclaim $2,537 to extend its rally

Ethereum’s immediate outlook depends on whether it can defend $2,475 and break through the resistance concentrated between $2,530 and $2,578.

A confirmed move above $2,578 would clear the daily upper Bollinger Band and open a path toward $2,600. A sustained breakout beyond that point could shift attention toward Martinez’s $2,722 target and the broader $2,723–$2,822 supply zone.

The bearish scenario begins with a daily break below $2,475. Such a move could draw ETH toward $2,448, followed by the 4-hour Supertrend and liquidation cluster around $2,423–$2,430.

US traders will also be watching the Federal Reserve’s Sept. 15–16 policy meeting, which includes updated economic projections and a press conference, according to the central bank’s calendar. Changing rate expectations could influence crypto risk appetite ahead of Ethereum’s next technical break.

US spot Ethereum ETFs provide a mixed institutional backdrop rather than a clear outflow trend. Farside Investors recorded a $48.2 million net outflow on Sept. 2, followed by inflows of $141.4 million and $25.9 million over the next two sessions.

For now, low 4-hour ADX and cooling daily RSI favor continued consolidation. The next stronger move is likely to depend on whether ETH first loses $2,475 or clears the $2,537–$2,578 resistance zone.

Britain’s Financial Conduct Authority has reportedly discussed easing restrictions on retail financial prediction markets, but the regulator had announced no policy change as of September 7, 2026.

The FCA held discussions with trading platforms about potentially reopening financial prediction markets to retail investors, according to a Times report. Industry representatives reportedly argued that British consumers already access overseas platforms, including Kalshi and Polymarket.

The discussions have not produced a public consultation, proposed rule or implementation date. The regulator’s latest published position continues to classify prediction contracts linked to financial and certain climate events as binary options.

The FCA permanently prohibited firms from selling binary options to retail consumers in April 2019. It has maintained that these contracts resemble gambling, carry a high risk of losses and are difficult for consumers to value accurately.

UK prediction market rules divide regulatory control

Prediction markets allow users to trade contracts based on whether an event will occur. A contract may pay a fixed amount when an outcome happens and nothing when it does not. Financial examples can cover interest rates, stock indexes or economic data.

The FCA regulates products tied to financial and certain climate events. Sports, political and other non-financial contracts generally fall under the Gambling Commission’s authority. This division means a platform seeking to offer several contract categories could require approvals from both regulators.

The Gambling Commission said in February that many current prediction platforms would probably meet the legal definition of a betting intermediary. Its official guidance compares their core structure with a betting exchange.

The commission also warned unlicensed operators against targeting or transacting with consumers in Great Britain. Operating without an appropriate gambling licence can constitute a criminal offence.

Overseas demand is testing Britain’s restrictions

Industry participants reportedly told the FCA that millions of Britons are using overseas prediction platforms. Some users are said to circumvent geographic restrictions through virtual private networks, although the FCA has not published independent figures confirming the scale of that activity.

Such access can place consumers outside the protections applying to authorized British firms. Depending on the platform and product, customers may lack access to domestic complaint procedures, the Financial Ombudsman Service or Financial Services Compensation Scheme coverage.

Prediction markets have expanded quickly in the U.S., where Kalshi operates as a federally regulated designated contract market. Polymarket uses blockchain infrastructure and has built substantial trading activity around elections, economics and other events.

The sector has also faced political scrutiny. As crypto.news reported, U.S. lawmakers investigated suspicious prediction-market wagers connected with military events and possible access to non-public government information.

The FCA must formally consult before access changes

The FCA previously raised prediction products in its paper on expanding consumer access to investments. It asked whether restrictions should depend more closely on a product’s risks instead of its label.

Its March perimeter report said the agency would consider whether to conduct further work on access or clarify the regulatory boundary. That wording leaves the review open but does not represent approval for Kalshi, Polymarket or another platform to offer financial event contracts to British retail customers.

The FCA’s original binary-options ban applies to firms conducting regulated business in or from the U.K. The measure replaced temporary restrictions introduced by European regulators and made Britain’s prohibition permanent. The FCA said binary options generated inherent conflicts because providers often profited when their customers lost money.

Any new framework could therefore require more than removing the existing prohibition. The regulator would need to decide which events qualify as financial products, what retail safeguards apply and whether customers must pass knowledge or suitability assessments. It could also consider position limits, standardized risk warnings and restrictions on incentives.

Any reversal would probably require formal proposals addressing product governance, appropriateness assessments, marketing, disclosure and loss protections. The FCA has not provided a deadline for deciding whether to begin that process.

The debate also arrives as trading platforms expand their British operations. Crypto.news previously reported that Robinhood secured FCA crypto registration before launching crypto trading through Bitstamp UK. In related coverage, Coinbase received broader UK investment permissions while expanding its U.S. prediction-market partnership with Kalshi.

For now, the reported discussions indicate regulatory interest rather than a change in law. Financial prediction contracts remain unavailable to British retail customers through FCA-authorized providers unless the regulator changes its rules.

Bitcoin (BTC) sees its first weekly close above $80,000 since early May as clouds gather over the US inflation outlook.

Key points:

• US PPI and CPI inflation numbers are due this week prior to the Fed’s Sept. 16 decision on interest-rate changes.
• Amid record currency interventions, analysis warns that Japan may not be able to sell US treasuries to help stabilize the yen in going forward.
• Bitcoin’s supertrend indicator delivers its first “buy” signal since late 2025, copying the previous bear-market recovery.

CPI, PPI due as markets see 0.25% rate hike next

US inflation data returns to the forefront this week after surprise employment data pressured crypto and risk assets. The August prints of the Producer Price Index (PPI) and Consumer Price Index (CPI) are due for release on Thursday and Friday, respectively.

CPI matched market expectations at 0.1% month-on-month and 3.4% year-on-year last month, continuing on from softer-than-anticipated June results. Although the numbers paint a positive picture for inflation, Kevin Warsh, chair of the US Federal Reserve, stated that these data prints alone did not support the case for reassessing financial policy.

“Each of these broad inflation measures have fallen significantly from their highs of a few years ago, but progress through the past couple of years has been more modest, and while this summer’s PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved,” he said at the Jackson Hole economic symposium in late August, referring to the Fed’s “preferred” inflation gauge, the Personal Consumption Expenditures (PCE) index.

In response to the speech, markets priced in an increased likelihood of Federal Reserve rate hikes at its next meeting on Sept. 16. The latest data from the CME Group’s FedWatch Tool shows that consensus favors a 0.25% rate hike, with odds at 58.4%.

Fed target rate probability comparison for September FOMC meeting (screenshot). Source: CME Group

Fears of rate hikes were also spurred by last week’s nonfarm payrolls data, which came in far stronger than expected and included upward revisions of prior figures. The US economy added 162,000 jobs in August against a prior estimate of 56,000. 

A stronger labor market reduces the need for the Fed to loosen policy, cementing the potential for rate hikes with core inflation still above its 2% target. Markets have maintained a hawkish outlook on rates. This is despite Fed governor Christopher Waller voicing support for an ongoing rate-hike pause and US president Donald Trump renewing pressure on the Fed to enact rate cuts last week.

“The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, ⁠and I won’t allow that to happen!” he wrote in a post on Truth Social.

Both PPI and CPI have the potential to alter the outlook prior to the meeting, with crypto market volatility often accompanying inflation-data prints.

Commenting, trading resource Mosaic Asset Company noted that the strong jobs numbers could still offer stocks a silver lining.

“While the knee-jerk reaction is centered around the rate outlook, it’s worth keeping in mind that good news for the economy should be good news for corporate earnings. The jobs report adds to recent data pointing to an economy expanding at solid pace, which should support the bull market looking ahead,” it wrote in analysis at the weekend. 

Mosaic cautioned that seasonality could add an additional hurdle, with September traditionally equities’ worst-performing month, while November’s US midterm elections should make for more volatile conditions into Q4. 

Japanese yen interventions hit record

Traders are focused on the Japanese yen as new government data reveals the extent of its record currency interventions. 

On Monday, Japan’s Ministry of Finance reported that its foreign reserves had decreased by $79.57 billion from the end of July amid a record currency intervention in the yen. Japan’s currency strengthened to 155 against the US dollar as a result, still holding that area during Monday’s Asia trading session.  

“Japan may have used both foreign securities and deposits, but it most likely sold U.S. Treasurys,” Atsushi Takeda, chief economist at Itochu Research Institute, told Bloomberg.

USD/JPY one-day chart. Source: Cointelegraph/TradingView

The move had potential implications beyond the yen, with US bond yields already facing pressure at the long end, prompting the Treasury to announce contingency measures set to begin on Sept. 9. Japan selling US Treasuries to fund future interventions may draw a negative response from Washington, leaving the Bank of Japan (BOJ) in a bind should yen weakness return.

“That would make it difficult for the ministry and the Bank of Japan to act going forward,” Akari Nishimura, economist at the Japan Research Institute, added.

Polymarket probabilities for BOJ rate decision on Sept. 18. Source: Polymarket

Traders now price in an interest-rate hike by the BOJ in September, with benchmark rates already at their highest since 1995 at 1.0%. Data from Polymarket currently sees 98% odds of a 0.25% increase.

Crypto markets remain highly sensitive to moves in USD/JPY and associated headlines due to the potential longer-term impact on the yen carry trade and liquidity trends. 

Bitcoin spot market activity still lacking

Bitcoin still needs more spot-market participation to exit its current low-timeframe range centered around $80,000, analysis argues.

Onchain analytics platform CryptoQuant notes that upside volatility seen over the past week was accompanied by sharp upticks in open interest (OI) on derivatives exchanges. This points to derivatives traders dictating snap price moves.

“Aggregate Open Interest rose from $25.2B to $27.53B: +$2.3B (+9.24%) in a single session. On the hourly timeframe, price and OI began expanding almost simultaneously around 09:00 UTC, pointing to a strong influx of new positions,” CryptoQuant reported about a previous price move on Sept. 3, when BTC/USD last rose above $82,000.

CryptoQuant noted that Bitcoin’s realized cap — the aggregate value of the BTC supply measured by the price at which it last moved onchain — has not kept pace with moves in OI.

“The conclusion is clear: the rally had spot/on-chain participation, but the main driver was derivatives. OI expansion, aggressive buying, positive funding, and rising leverage created a structure far more dependent on futures than on realized on-chain capital,” it continued.

Cointelegraph previously reported that the lack of spot demand is a major hurdle to a sustained BTC price trend change. As BTC/USD returned investors to net profit last month, profit taking surged.

CryptoQuant warns that spot demand remains negative, with values increasingly diverging from futures on a 30-day rolling basis.

“While futures demand is driving the rise, spot demand continues to show a negative trend. This is not a good signal, as there can be no bullish rally without spot demand. Despite the rebound, the outflow of spot $BTC has increased further,” it commented.

Bitcoin demand growth comparison (screenshot). Source: CryptoQuant

Last week, Cointelegraph reported on the return of negative apparent demand, which reflects that BTC’s dormant supply growth outpaced new issuance.

BTC price seals first weekly close above $80,000 in four months

Bitcoin narrowly touched $80,000 on Sunday, marking its highest weekly close since the week of May 11, per data from TradingView.

BTC/USD one-week chart. Source: Cointelegraph/TradingView

The $80,000 mark remains elusive support, however, with bulls unable to remain above it consistently as sell-side liquidity mounts immediately above this level. The latest data from CoinGlass shows liquidity concentrated around $80,560, forming a thick wall of resistance, which is keeping BTC/USD pinned in a narrow range.

BTC liquidation heatmap. Source: CoinGlass

Last month, onchain analytics platform Glassnode flagged large liquidity bands as key to shaping Bitcoin’s longer-term price action, highlighting a further band between $83,000 and $86,000 in particular.

“While the upward impulse consumed short orders in its path, it stopped short of the dense cluster of short liquidations situated between $83K and $86K,” it wrote in the latest edition of its regular newsletter, The Week Onchain. 

“Below spot, the move left behind an intact band of long liquidation fuel between $60K and $63K. Price now trades between these two boundaries.”

Bitcoin futures liquidation heatmap. Source: Glassnode

Market participants, meanwhile, are considering where the current consolidation could resolve to fresh upside. Jesse Olson, developer of the Markets Sniper trading suite, sees BTC/USD repeating a bullish chart fractal from August 2023, with $76,000 now in sight as a local reversal point.

BTC/USD one-day chart. Source: Jesse Olson on X.com

Bitcoin supertrend bull signal copies early 2023 recovery

Sunday’s weekly close saw a classic BTC price trend indicator flip green for the first time since November 2025.

Related: Here’s what happened in crypto today

On weekly time frames, BTC/USD closed above its supertrend line, producing a “buy” signal. Supertrend employs average trend range (ATR) data and a multiplier to calculate a simple buy and sell signal, measured by its interaction with the supertrend line. 

Weekly time frames draw particular attention from Bitcoin traders, as a close above the supertrend line has never occurred within a bear market. The last time that supertrend flipped from red to green was in mid-January 2023, with Bitcoin’s last bear-market bottom of $15,600 already two months behind it. Conversely, the indicator flipping from green to red has preceded the start of protracted downtrends.

BTC/USD one-week chart with supertrend data. Source: Cointelegraph/TradingView

The signal joins a growing selection of cues that has instilled confidence in some that Bitcoin already saw its macro bottom at $57,000. In August, BTC/USD closed above its 50-week exponential moving average (EMA) for the first time since late 2025 — an event that has historically been crucial for a long-term bullish price-trend reversal.