Bitcoin slid to weekly lows on Monday after earlier upside momentum faded, with traders pointing to a sudden buildup of sell-side orders on exchange books around $85,700. The move triggered notable liquidations, while broader risk sentiment also weakened as US markets reacted to renewed uncertainty over the Iran situation.

TradingView data showed BTC/USD dropping below $82,700 for the first time since Sept. 21, following a strong run that included the pair’s highest weekly close since late January near $84,450. Instead of pushing toward last week’s highs above $87,000, price encountered a concentrated pocket of resistance.

Key takeaways

• BTC/USD fell below $82,700 after failing to retest the prior week’s above-$87,000 highs.
• About $30 million in ask liquidity appeared around $85,700, coinciding with the reversal from higher levels.
• CoinGlass data indicated roughly $70 million of liquidations over 24 hours, primarily cutting into nearby long positions.
• US stock-market futures weakened alongside crude oil strength after President Donald Trump declined to rule out further strikes on Iran.
• Analyst Aksel Kibar warned Bitcoin could revisit the sub-$80,000 area if momentum doesn’t quickly stabilize.

Why order-book liquidity can flip momentum

According to TradingView, BTC/USD turned lower after a decisive attempt at consolidation above $84,450 failed to extend. The most cited microstructure signal was the appearance of a large, clearly defined layer of sell-side liquidity on exchanges around $85,700, with over $30 million clustered near that price.

In practical terms, these “liquidity walls” can matter because they concentrate sell interest at a specific level. If buying demand can’t absorb those resting orders, price may struggle to advance and can even accelerate downward as traders reassess the likelihood of a breakout. The reported timing—after Bitcoin failed to move back toward eight-month highs above $87,000—suggests the market’s attempt at continuation met a predictable obstacle.

Market participants also noted that this kind of conspicuous order-book change often draws attention from larger traders, including those managing hedges or positioning for future moves. Whether the liquidity layer represents genuine long-term supply or more tactical order placement remains difficult to confirm from order-book snapshots alone, but the impact on near-term price action was clear.

Liquidations underscore the speed of the downturn

While order-book data explains the “why” behind resistance, liquidation statistics help show the “how” behind the move. CoinGlass liquidation data, as referenced in the report, recorded liquidations of nearby long positions totaling around $70 million over 24 hours at the time of writing.

When price breaks through key intraday levels, leveraged traders who are positioned on the long side can be forced out quickly. That fast unwinding can compound selling pressure, turning a stalled breakout attempt into a sharper downside move, especially when liquidity is already strained by the presence of a heavy sell wall.

For investors and traders, these figures are less about day-to-day drama and more about confirming that the decline wasn’t purely slow drifting—there was enough leverage in the market to produce liquidation cascades.

Risk-off pressure from US geopolitics and oil

Bitcoin’s weakness also lined up with a deterioration in broader risk sentiment. The report linked the move in crypto to downside in US stock-market futures after President Donald Trump refused to rule out additional strikes on Iran.

In remarks reported by Fox News during the PGA Tour Presidents Cup on Sunday, Trump said: “I don’t want to say that. I don’t want to say that. I mean, it’s possible, but I just don’t want to say that.”

At the time of writing, Nasdaq futures were down about 0.9%, while WTI crude oil moved above $95 per barrel for the first time since Sept. 24. Rising oil prices often feed into wider concerns about inflation, economic activity, and risk appetite—factors that can spill over into crypto even when the immediate catalysts are order-book driven.

For traders monitoring correlations, the takeaway is that Monday’s drop wasn’t isolated to crypto microstructure alone; macro headlines appeared to reinforce a shift toward caution.

What to watch around $85,700 and next support zones

The $85,700 level is now central to the near-term debate. The report described it as the barrier that blocked another attempt to reach the 2026 year-open level at $88,700, where Bitcoin stalled last week.

Even with a strong weekly close previously, the failure to reclaim the path back toward $88,700 suggests bulls still need a clearer sequence of higher highs and higher lows rather than just intermittent pushes. As the price moves, the market will likely treat earlier resistance areas as potential pivot points—turning them into either launchpads or magnets for further selling depending on how quickly Bitcoin can recover.

Analyst Aksel Kibar warned that Bitcoin’s current behavior did not resemble a decisive breakout. In a post on X, he cautioned that hesitant price action can lead to returning inside the familiar range from $60,000 to $80,000—an area the report frames as where BTC/USD spent much of 2026.

The immediate risk highlighted by that commentary is a scenario where the market fails to hold above the recent breakdown area and instead revisits sub-$80,000 territory. In the short term, that means traders should watch for whether downside continues to attract liquidations or whether support reasserts itself quickly enough to prevent a deeper retracement.

Going forward, the key uncertainty is whether the $85,700 order-book pressure dissolves and allows price to rebuild toward $88,700, or whether liquidation-driven weakness and macro jitters keep pulling BTC back toward the $80,000 zone; monitoring both the exchange liquidity changes and broader US risk headlines may offer the most practical signal for the next move.

Authorities in Japan have arrested two suspects over their alleged role in helping a fake police fraud group steal cryptocurrency worth 81 million yen ($515,000) from a woman in her 40s.

Police believe the group operated out of Cambodia and is part of a larger operation.

Police Arrest Two In Crypto Scam

According to a report by FNN, Japanese authorities arrested Saki Okayama and Mitsuki Minamisawa in connection with the scam. Group members impersonated police officers and used intimidation tactics to pressure their targets into transferring their crypto assets. The group’s latest target, a woman in her 40s, was told her bank card was linked to a money laundering investigation.

The group claimed that 400 accounts were used to launder funds from a fraud case that led to 600 billion yen in losses.

How The Scam Worked

Authorities also explained how the scam worked. It began with a call from an individual claiming to represent the Osaka Prefectural Police. The caller reportedly told the woman her card belonged to one of several accounts linked to a money laundering investigation.

The woman was also told she was close to being arrested unless she proved her innocence. Authorities alleged that the false accusation and pressure from the scammers led the victim to transfer 81 million yen worth of cryptocurrency.

Authorities have not disclosed which cryptocurrencies were stolen or the wallet addresses that received the crypto. However, they allege the suspects are part of a larger organization and are linked to confirmed losses of around 240 million yen from similar scams. Authorities believe the group operates out of Cambodia, and that a Chinese national is at the helm of the entire operation.

Fake Police Scams And Rising Losses

The arrests come as losses from fake police scams mount in Japan. According to the country’s National Police Agency, fake police scams have resulted in 61.71 billion yen across 5,422 cases in the first seven months of 2026. While the number of cases has dropped 6.4%, losses have jumped by 25.7%. The scale of the frauds has forced authorities to treat such scams as a separate category. Police statistics have reported a 42.9% jump to 210.81 billion yen in special fraud losses from a year earlier.

In a separate incident, an individual lost 73 million yen to scammers pretending to be officials from the Tokyo Metropolitan Police Department who forced him to transfer the funds to prove his innocence. Authorities have urged people not to fall victim to such scams, stressing that they would not ask someone to transfer funds to designated accounts.

Japanese Regulators Strengthening Fraud Controls

Regulators in Japan are focusing on strengthening controls to check any fraud proceeds moving through cryptocurrency exchanges. The country’s Financial Services Agency and National Police Agency have proposed implementing withdrawal delays and stronger checks on newer wallet addresses. This includes a waiting period before new addresses can be used, stronger measures to monitor transactions, and account restrictions in cases of suspicious activity.

The authorities have also asked exchanges to improve authentication measures and response times when asked to identify suspicious transactions.

The proposal comes after a substantial jump in fraud cases and losses. The National Police Agency reported 18,067 special fraud cases and 151.47 billion yen in losses until May, with fake police schemes accounting for 40.32 billion yen.

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.

South Korea’s Financial Services Commission (FSC) says it is weighing the introduction of a regulated market-making system for digital assets after a yen-pegged stablecoin briefly traded at extreme prices on a major local exchange.

The discussion follows JPYC’s launch on Upbit earlier this month, when the token—linked to the Japanese yen—jumped far beyond its peg within about an hour, an outcome widely attributed to thin liquidity. FSC officials now appear to be reconsidering whether market-making provisions could improve trading efficiency and reduce repeat incidents of sharp price dislocations.

Key takeaways

• FSC officials are reviewing whether to add market-making mechanisms to improve “efficiency and stability” in South Korea’s digital asset market.
• JPYC’s debut on Upbit saw prices spike to more than four times the peg shortly after trading opened, with limited liquidity cited as a driver.
• South Korea’s Virtual Asset User Protection Act currently lacks a market-making exemption from market manipulation rules, restricting market makers from providing liquidity.
• Academics have debated the market-maker carve-out for years, balancing liquidity benefits against concerns it could enable manipulation.
• The possible shift aligns with broader efforts to consolidate crypto regulation, including planned stablecoin coverage under a Digital Asset Basic Act.

JPYC’s price spike reopens the market-making debate

Upbit began trading JPYC on Sept. 17. The stablecoin opened at 12 Korean won per JPYC and climbed to a high of 37.6 won within roughly an hour—over four times the token’s value relative to its peg. The surge was attributed to limited liquidity on the exchange.

For regulators, the episode became more than a market curiosity. Yoo Young-joon, director of digital finance policy at the FSC, said at a Seoul conference that the commission would look at whether systems such as market-making activities should be introduced to enhance the efficiency and stability of the digital asset landscape. Yoo also referenced growing criticism tied to user losses after the price movement following JPYC’s listing, saying demands for “discipline” in this area are increasing.

What the FSC is reconsidering under current rules

Under South Korea’s Virtual Asset User Protection Act, there is currently no explicit exemption that would allow market-making to proceed without conflicting with market manipulation provisions. In practice, this means market makers cannot provide liquidity in crypto markets under the existing interpretation of the law.

Yoo’s comments suggest that the FSC may be exploring a more permissive approach—potentially by creating space for market-making activity—if it can be structured in a way that addresses manipulation risks and better protects users during listings and other periods where liquidity is thin.

Why academics argued about carve-outs well before JPYC

The market-maker question is not new in South Korea. Researchers have debated whether a legal carve-out could improve liquidity and reduce volatility, while also weighing whether market-making could blur the line between stabilizing markets and enabling market manipulation.

In a 2024 peer-reviewed paper published by the Seoul Law Review, KB Securities researcher Lee Min Jung discussed why regulators previously did not permit crypto market making, noting the concern that it could amount to manipulation. Lee argued at the time that introducing market makers might be premature, but she also suggested regulators could consider a carve-out once markets become more stable.

Separately, a paper by Yoonyoung Choi from the Korbit Research Center made the case that the absence of a formal market maker system has contributed to “serious liquidity problems” in the domestic crypto market. The research highlighted how such conditions can create price discrepancies and higher volatility, pointing to the Kimchi premium—an established pattern of local price differences—as one example of market inefficiency in South Korea.

Liquid markets, listing shocks, and regulation ahead

The FSC’s apparent willingness to revisit market-making rules arrives as South Korea continues building out its broader framework for crypto regulation. In July, the FSC said it planned to introduce a consolidated Digital Asset Basic Act covering stablecoins and the wider crypto market, including rules for digital asset businesses, exchanges, disclosures, and internal controls.

However, lawmakers have not settled every detail. The source reporting notes that key elements—particularly rules governing won-denominated stablecoin issuers—remain unresolved. That uncertainty means any future market-making changes could become intertwined with how stablecoins and exchange operations are ultimately treated under the new law.

Seen in this context, JPYC’s debut on Upbit looks less like an isolated trading glitch and more like a stress test of the current ecosystem: when liquidity is limited at launch, even yen-pegged stablecoins can temporarily diverge sharply from expected value, exposing traders to outsized risk. A market-making framework—if designed with safeguards—could help reduce those extreme spreads, but it would also require regulators to draw clear boundaries around acceptable conduct.

What to watch next

Investors and exchange users should watch for whether the FSC proposes a formal market-making exemption and, if so, what compliance conditions it would attach—especially in relation to liquidity provision during listings and periods of low trading depth. The next steps may also hinge on how stablecoin rules are finalized under the Digital Asset Basic Act.

President Donald Trump has made millions from memecoins, but politicians in California don’t have that chance anymore.

On Sunday, California’s Governor Gavin Newsom signed a law that bans the state’s public officials from issuing memecoins, or cryptocurrencies representing a famous personality, internet joke or viral trend rather than a specific use case.

The measure, AB 2409, was signed along with 10 other bills on corruption and consumer protection. Others set rules for paying back crypto scam victims and creating a legal process to seize crypto from transnational criminal networks.

Newsom’s office titled the announcement “THE OPPOSITE OF TRUMP,” accusing the Trump administration of corruption and self-dealing, including through the viral $TRUMP memecoin.

“While the scam that is Donald Trump continues to hurt American families, California is fighting to make our economy work for people, not the powerful. No official should profit off their office — and we’re putting stronger protections in place to ensure it doesn’t happen in our state,” Newsom said in the press release.

Trump’s office did not immediately respond to CoinDesk’s request for a comment.

It’s unclear whether the ban covers meme tokens already in existence, such as $TRUMP.

South Korea’s Financial Services Commission said it is considering a market-making system for digital assets, after a stablecoin linked to the value of the Japanese yen traded for as much as four times its peg on a major South Korean crypto exchange earlier this month. 

Crypto exchange Upbit opened trading of JPYC, a yen-backed stablecoin, on Sept. 17, with the market opening at 12 Korean won per JPYC before reaching a high of 37.6 Korean won just an hour later, more than four times its market value. The spike was attributed to limited liquidity on Upbit. 

“We will also review the need to introduce systems such as market-making activities to increase the efficiency and stability of the digital asset landscape,” Yoo Young-joon, director of digital finance policy at the FSC, said at a conference in Seoul on Monday, Digital Asset reported. “There were also criticisms that user losses occurred from the price surge after the JPYC listing, so demands for discipline in this area are expanding.”

South Korea’s Virtual Asset User Protection Act currently does not contain an exemption for market-making from its market manipulation provisions, preventing market makers from providing liquidity in crypto markets. The latest comments from Yoo suggest the FSC could be reconsidering this decision. 

South Korean academics have debated the market-maker carve-out before. In a 2024 peer-reviewed paper from Seoul Law Review, KB Securities researcher Lee Min Jung said regulators at the time did not allow crypto market making as it could amount to market manipulation. While Lee argued that introducing market makers would be premature due to manipulation concerns, she said regulators could consider a carve-out once the market becomes more stable. 

Researchers had called for a formal market-making framework long before the recent JPYC episode. A paper by Yoonyoung Choi from the Korbit Research Center argued that the domestic crypto market has been experiencing “serious liquidity problems” due to the absence of a formal market maker system, leading to price discrepancies and high volatility. The paper cited the Kimchi premium as an example of inefficiency in South Korea’s crypto market.

Related: South Korea drops Travel Rule threshold for crypto transfers

The potential introduction of a market-making system comes as South Korea works to establish a broader regulatory framework for its crypto industry. 

The FSC said in July that it planned to introduce a consolidated Digital Asset Basic Act covering stablecoins and the broader crypto market, including rules for digital asset businesses, exchanges, disclosures and internal controls.

However, lawmakers have yet to settle several key aspects of the legislation, including rules governing won-denominated stablecoin issuers.

Magazine: THORChain under fire over Bitget, ETH evolves beyond blockchain: Hodler’s Digest