A BitGo Research report said that Bitcoin (BTC) absorbed two bearish catalysts, a rate hike by the Federal Reserve and the Senate’s failure to pass the CLARITY Act, to recover and maintain its position above $86,000.

According to the report, BTC’s price action was the outlier compared with other assets like gold and equities. The flagship cryptocurrency fell toward $75,000 following the rate hike before making a quick recovery as ETF demand and short covering supported the rally.

Bitcoin Absorbs Bearish Catalysts

According to BitGo Research Chief Greg Cipolaro, BTC’s reaction contrasted with that of traditional assets like gold after the Federal Open Market Committee (FOMC) raised interest rates. Cipolaro argued that the flagship cryptocurrency’s muted reaction to the hike and the CLARITY Act setback likely means the price action had already factored in the bearish developments. Renewed ETF demand, lower oil prices, declining Treasury yields, and short covering also supported BTC’s rally.

“Bitcoin absorbed a hawkish FOMC surprise and a failed Clarity Act vote in the same week, and shrugged off both. Gold, equities, and the dollar moved exactly as textbooks predict. Bitcoin didn’t.”

Two Bearish Catalysts for Bitcoin

The first bearish catalyst was the Senate’s failure to pass the CLARITY Act, a development that came before the Federal Open Market Committee (FOMC) decision. The US Senate rejected cloture to proceed with H.R. 3663. The vote ended 49-59, 11 votes short of the number required. The CLARITY Act aims to establish a clear federal framework, dividing oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Senator Thom Tillis, who was actively involved in bipartisan discussions regarding crypto market rules, ultimately voted against cloture so that he could file a motion to reconsider. However, no new cloture vote is on the Senate’s official list.

The next bearish catalyst for BTC was the Federal Reserve’s decision to raise interest rates by 25 basis points. It was the first rate hike since July 2023 and was supported by all 12 voting members of the committee. BitGo said that, while the hike was expected, the Fed’s new rate projections caught markets by surprise. According to the September Summary of Economic Projections, the median federal funds rate was 4.1% for 2026 and 2027, against June projections of 3.8% and 3.6%. Meanwhile, projections for 2028’s median jumped from 3.4% to 3.9%. Additionally, 16 of the 18 committee members project at least one more rate hike this year. According to Cipolaro, the projections suggest Fed officials expect interest rates to remain elevated.

Meanwhile, the traditional markets reacted along expected lines to the Fed’s decision. The Dow Jones ended September 1.21% lower, and the S&P 500 fell 0.44%, while short-term Treasury yields rose and the dollar strengthened.

Bitcoin (BTC) Price Action: A Case for Resilience

Bitcoin’s reaction to both developments was telling. The flagship cryptocurrency dropped sharply after the Senate failed to advance the CLARITY Act, falling over 3% to $75,584. The Fed’s decision to increase interest rates drove the price lower. However, BTC rebounded from a low of $74,911 to reclaim $76,000 and close at $76,144. The recovery was attributed to the fact that the rate hike was already priced in. The flagship cryptocurrency continued its ascendancy despite the bearish developments, as ETF inflows, improved market sentiment, and short covering pushed the price higher.

BTC rose nearly 6% on Friday thanks to positive regulatory shifts and renewed institutional demand, crossing $80,000 and settling at $80,875. The flagship cryptocurrency started the current week with a 6.70% jump, crossing $86,000 and settling at $86,594. BTC is currently trading around $86,140.

The rebound occurred as spot Bitcoin ETFs recorded substantial inflows. CoinGlass data shows the ETFs recorded $159.50 million in inflows on Thursday, and $433 million on Friday. Inflows jumped to $999 million on Monday, while Tuesday recorded $714.70 million, taking total inflows to $2.3 billion over four sessions. Nansen research analyst Nicolai Sondergaard also highlighted strong inflows as a key driver behind BTC’s rally, with forced short liquidations as another factor.

According to BitGo, BTC did not behave as expected following the current hike. Cipolaro said BTC historically weakened alongside other traditional assets when market conditions became difficult. Equities, gold, the dollar, and Treasury yields behaved as expected, while BTC was the outlier. However, BitGo highlighted spot Bitcoin ETFs, which gave institutions and brokerages regulated access to the asset; several public entities held BTC on their balance sheets, and derivatives markets have also grown considerably.

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.

US regulators are increasingly signaling that tokenization of real-world assets (RWAs) and broader “onchain” market infrastructure may become the next major shift in financial plumbing. CFTC Chair Michael Selig used remarks at the US Treasury Market Conference to argue that markets should prepare for “mass tokenization,” as regulators seek to adapt existing rules to blockchain, AI and onchain finance.

Selig’s comments frame tokenization not as a niche experiment, but as an evolution comparable to the move from manual signals to electronic trading. At the same time, the CFTC and SEC are both taking separate but related steps—working through existing authorities and limited regulatory pathways—while broader legislative efforts remain in limbo.

Key takeaways

• CFTC Chair Michael Selig said markets should prepare for “mass tokenization,” positioning RWAs as a foundation for faster settlement and real-time collateral movement.
• Selig emphasized a “principles-based” approach as tokenization and onchain finance mature under the CFTC’s remit.
• The CFTC has submitted a crypto market regulatory action for White House review, but it is currently at the “prerule” stage.
• The SEC is also pushing on tokenized markets, including granting a temporary “Innovation Exemption” for tokenized US stock trading.
• Regulatory momentum is building even as the CLARITY Act has failed to advance in the US Senate.

CFTC Chair: tokenization as the next infrastructure upgrade

Speaking Tuesday at the US Treasury Market Conference, Selig argued that tokenization of real-world assets could help create a more efficient financial system. His remarks highlighted potential operational benefits such as near-instant settlement and the ability to move collateral in real time across clearinghouses, intermediaries and end users.

In his comparison to past market modernization, Selig said, “Just as the transition from hand signals to electronic trading advanced our financial system, I believe tokenization can do the same for all asset classes.” He added that the CFTC intends to pursue principles-based rules as tokenization and onchain finance evolve.

This matters for market participants because “principles-based” frameworks can affect how quickly issuers, exchanges, clearing firms and custody providers can build products and integrate them into existing market structures. Rather than requiring everything to fit a single prescriptive model, the approach can leave room for different tokenization architectures—though it also increases the importance of interpretation and compliance guidance as new cases emerge.

Legislation stalled; CFTC moves using existing authority

Selig’s remarks come amid an ongoing legislative backdrop. Earlier in August, he said the CFTC would move ahead with crypto rules under its existing authority if Congress did not pass the CLARITY Act. Cointelegraph previously reported that the Senate failed to advance the bill on Sept. 15.

That pressure point appears to be part of why the CFTC is leaning into regulatory action without waiting for a comprehensive statute. On Sept. 17, the CFTC submitted a regulatory action covering crypto asset transactions and markets for White House review. According to the description of the filing, it remains in the “prerule” stage and does not yet outline the planned regulations.

For traders and builders, the “prerule” status is a reminder that timelines may stretch while proposals circulate through internal and executive review processes. However, the submission itself signals that the CFTC is treating crypto market oversight as an active, ongoing process rather than a wait-and-see posture.

SEC’s onchain push: tokenized stocks under a temporary exemption

The CFTC’s focus on tokenization of RWAs is not the only regulatory thread. The SEC has also been advancing tokenized market mechanisms, including through targeted permission structures rather than waiting for broad, future rulemaking.

In a Bloomberg TV interview, Jamie Selway, the SEC’s Division of Trading and Markets Director, said tokenization and crypto have recently become politicized, but are “not naturally a politicized function.” Selway argued that the US should receive bipartisan support for building markets that function effectively in this new environment.

Following that general push, the SEC on Sept. 17 granted a temporary “Innovation Exemption” for tokenized US stock trading. The exemption allows certain platforms to trade digital versions of US-listed stocks under specified conditions.

The SEC’s use of an exemption framework is significant because it creates a controlled channel for experimentation. It can reduce friction for participants willing to comply with narrow restrictions while regulators develop longer-term standards. The SEC Chair Paul Atkins previously said in February that such an exemption could facilitate onchain trading while longer-term rules are developed.

Read alongside the CFTC’s remarks, the pattern suggests regulators are converging on the idea that onchain functionality—settlement efficiency, programmability, and potentially real-time collateral flows—should be approached through enforceable guardrails rather than outright delay.

What to watch next: principles-based rules and the shape of “tokenized markets”

Between the CFTC’s principles-based posture and its “prerule” submission for White House review, and the SEC’s temporary exemption approach for tokenized equities, the near-term question is less whether tokenization will expand and more how regulators will define the boundaries of compliant onchain trading and settlement.

Investors, traders, and developers should watch for two things next: any movement from “prerule” toward more detailed CFTC proposals, and the conditions or duration attached to the SEC’s Innovation Exemption—both of which will likely signal how far and how fast tokenized markets can grow within current regulatory frameworks.

Crypto’s downturn over the last year has done little to slow stablecoins at the border, with cross-border stablecoin flows rising 77.5% in the year to June 2026 as the broader market lost more than a third of its value, according to new research from Chainalysis. 

In its newly released 2026 Global Crypto Adoption Index, Chainalysis said cross-border stablecoin flows rose 77.5% to $220.3 billion in the 12 months ending June 2026, from $124.2 billion in the previous 12-month period, despite total crypto market capitalization falling 37% to $2.1 trillion over the same period. 

“The bear market hit the price-sensitive half of crypto and left the payments half alone,” Chainalysis said.

The growth points to increasing crypto demand beyond speculative trading. Stablecoins, which are designed to maintain a stable value, often against fiat currency, have gained a foothold in mainstream finance. The US signed the GENIUS Act into law in July 2025, while the European Union’s MiCA rules and Hong Kong’s issuer licensing regime have brought stablecoins further within formal financial oversight.

Chainalysis said growth came from cross-border transfers averaging around $3,000, which is consistent with everyday use cases such as supplier payments, sending money home or moving savings out of volatile currencies. 

“Activity has become consistent, routed through wallets in a steady rhythm rather than in bursts,” Philip Gradwell, vice president of economics at Tether, told Chainalysis. “That is the signature of trade and business activity, not speculation.”

Tianwei Liu, co-founder and CEO of StraitsX, told Cointelegraph that in Asia, fragmented currencies and payment systems have created demand for stablecoin settlement. 

“That demand is also extending into everyday spending, with stablecoins sitting behind payment methods people already use,” Liu said.

However, outside of Asia, stablecoins address different needs, he said, including dollar access, remittances and protection against inflation or capital controls, such as across Latin America, Africa and the Middle East.  

Related: Stablecoin growth could boost dollar dominance, US Treasury demand: BoE official

Chainalysis tracked 4,708 new cross-border corridors during the reporting period, carrying a combined $2.64 billion. Each corridor represents a route between an originating and receiving country.

Flows remained heavily concentrated in the top quarter of corridors, which accounted for 96.1% of measurable cross-border stablecoin value. The remaining three quarters carried $8.66 billion, up from $260 million in the previous period. 

Vincent Chok, co-founder and CEO of First Digital, told Cointelegraph that while traditional payment structure remains effective for established corridors, it becomes fragmented as businesses move money between markets with different banking systems, currencies and settlement hours. 

Stablecoins offer another option, he said, but it is still restrained by regulatory clarity, reliable redemption, access to local currencies and interoperability with existing financial systems. 

“Onchain settlement is fast, but it doesn’t solve the off-chain parts: converting to local currency, meeting compliance requirements, and moving funds through existing banking rails,” Chok said.

Meanwhile, traditional remittance companies have expanded their stablecoin offerings this year.

Western Union launched a stablecoin wallet and Visa-linked card across 37 markets in August, allowing users to hold and spend its branded US dollar-backed stablecoin. 

MoneyGram announced a similar card initiative in September, initially targeting Colombia, with additional markets planned later this year. 

Magazine: Kyle Samani predicts SOL flippening, claims ‘no one’ uses ETH

Crypto hacking collective ShinyHunters claims to have stolen the personal details of 5,000 FBI agents after gaining access to its database.

It shared a sample of the stolen data with a number of outlets yesterday. The data includes family members, social security numbers, and details of assignments. 

Reuters was able to partially verify some of the data in the sample and matched it with other agents, including FBI director Kash Patel.

ShinyHunters also defaced the FBI’s job page with a picture of the Pokémon Umbreon. 

This summer, the ocean sent us another warning. In August, global sea-surface temperatures reached their highest level on record. Days later, the most comprehensive assessment of coral reefs ever published showed that increasingly frequent marine heatwaves are leaving reefs less time to recover between bleaching events. Global hard coral cover has declined by 9.5% compared with the 1980-2009 average, driven primarily by human-induced climate change.

For me, this is deeply concerning, but also a reason to act. I come from Seychelles, an archipelago of 115 islands off the coast of East Africa where the ocean is inseparable from our lives, livelihoods, and future. It supports the food we eat, the jobs people depend on, and the resilience of our economy.

Bitcoin is entering what on-chain analysts describe as its “next real test” near the $90,000 mark, with traders potentially taking profits as price approaches a cluster of supply from investors who bought BTC one to three months earlier. While CryptoQuant frames the move as a pause inside a broader uptrend, the $88,000–$90,000 zone is now viewed as the clearest near-term resistance to clear.

CryptoQuant’s latest weekly research also points to stabilizing profitability signals in 2026 and highlights a shift in the market structure—especially the growing role of institutional participation—that, according to CEO Ki Young Ju, may dampen the depth of future cycle extremes.

Key takeaways

• CryptoQuant expects higher odds of profit-taking if Bitcoin trades into the $88,000–$90,000 area, described as the next resistance cluster.
• Traders’ realized price is cited around $64,300, with an “upper band” near $90,300 that could stretch profit margins and trigger selling.
• CryptoQuant says the path from roughly $86,000 to the profit-taking zone is “largely clear” and does not imply a return to bear-market conditions.
• Ki Young Ju argues institutional ownership can make future cycle tops and bottoms “shallower,” reducing both upside and downside extremes.
• CoinShares data cited by Cointelegraph previously—and CryptoQuant’s own framing—tie the current bull-case to profitability metrics like MVRV stabilizing through 2026.

Why $90,000 is now the “profit-taking” checkpoint

In a weekly report released Tuesday, CryptoQuant warned that Bitcoin’s trading zone around $90,000 could face increased selling pressure if price reaches it. The reasoning centers on realized profitability—how much profit or loss current market participants are sitting on based on when they last acquired BTC on-chain.

CryptoQuant uses “realized price” as the average acquisition price of coins last moved between one and three months ago. The analytics firm places this realized price around $64,300, and highlights upper and lower bands around that level to show where profit or loss margins may widen for this cohort of supply.

According to CryptoQuant, the upper “profit-taking” band sits near $90,300—roughly 40% above the realized price. The report links that band with an on-chain supply cluster formed between $88,000 and $90,000, calling it the next resistance investors must absorb.

“The upper band coincides with the $88K–$90K on-chain supply cluster, making it the next resistance to clear. Historically, as price approaches the upper band, trader profit margins stretch and selling can intensify — a natural pause point within an uptrend, not a reversal,” CryptoQuant analysts wrote.

Importantly for market participants, CryptoQuant describes the route from the current spot level near $86,000 to the profit-taking zone as “largely clear.” The firm also says there are no signs that price action is dragging the market back toward bear-market conditions. In other words, the $90,000 test is framed more as a liquidity and positioning hurdle than as an immediate thesis break.

From “bear market” to “bull confirmation,” according to CryptoQuant

Alongside the profit-taking analysis, CryptoQuant reiterates its broader bullish assessment. The firm states that technical, valuation, and on-chain indicators now align in favor of an uptrend, echoing earlier comments made by CEO Ki Young Ju.

Ki has argued previously that the market’s structure is changing, which can influence how sharply price responds during cycle transitions. In a recent post on X, he suggested that both future cycle tops and bottoms may look less extreme than in prior eras because institutional ownership has increased relative to retail participation.

“Today, a much larger market and growing institutional ownership are dampening both extremes. The same forces that limit the upside also soften the downside,” Ki Young Ju wrote.

That framing matters for traders because a market dominated more by institutional allocation may react differently to liquidity shocks than one driven primarily by retail leverage. While CryptoQuant’s latest report does not claim that volatility disappears, it suggests the distribution of risk and selling pressure may be less binary than in earlier cycles.

Profitability signals: what CryptoQuant says changed in 2026

CryptoQuant’s research also highlights a profitability stability theme during 2026. In particular, Ki Young Ju pointed to the market value to realized value (MVRV) ratio, saying that during the 2026 bear market it did not fall below the breakeven level of 1 at any point. In his view, that indicates the broader investor base remained in aggregate profit rather than shifting into a fully drawdown-driven state.

This contrasts with earlier macro downtrends—periods when MVRV breached its breakeven threshold and helped signal widespread unrealized losses. According to the approach popularized by CryptoQuant, staying above breakeven can reduce the likelihood of forced selling across large investor cohorts.

Cointelegraph previously reported that MVRV has crossed above its 365-day moving average—a milestone the publication tied to the end of the 2018 and 2022 bear markets. While that earlier coverage focused on the MVRV crossing itself, CryptoQuant’s latest angle connects the metric back to the broader idea of a market that is holding profitability rather than collapsing it.

ETFs add demand pressure as traders watch the resistance zone

Beyond on-chain supply and realized pricing, CryptoQuant’s outlook is being tested against real-time demand signals. Cointelegraph noted that Bitcoin exchange-traded funds in the US have seen net inflows this month. In the most recent week being cited, the first two days recorded $1.7 billion in net inflows, with Monday alone bringing $999 million in inflows.

Those numbers were attributed to Farside Investors data, referenced in the reporting. While ETF flows do not remove on-chain resistance by themselves, consistent inflows can change the balance between new demand and profit-taking supply—particularly near psychologically important price levels like $90,000.

For traders, the practical takeaway is that the next resistance is being measured not only by price-based technical levels, but by where recently acquired coins become profitable enough to encourage selling. If ETF demand remains strong, it could help absorb that supply cluster; if it fades, profit-taking dynamics may dominate more quickly.

Going forward, the key question is whether Bitcoin can clear the $88,000–$90,000 band without triggering a larger wave of realized selling. CryptoQuant’s framework suggests a “natural pause” is plausible inside an uptrend, but investors will likely watch ETF flow persistence alongside on-chain realized profit bands to judge whether the $90,000 test turns into a brief slowdown or a more durable ceiling.