A looming Fed rate hike threatens the fragile rally across Bitcoin, Ethereum and XRP. Traders raised the odds of a Fed rate hike at the September 16 meeting to 86.5%, according to the CME FedWatch tool. The shift follows fresh inflation data and puts pressure on the broader crypto market this week.

Bitcoin Faces Fed Rate Hike Pressure Before FOMC Meeting

The probability of a Fed rate hike jumped from near 70% before the August inflation report. U.S. CPI inflation rose 3.4% year-over-year in August, fueling the shift. A hike would mark the first increase in three years and signal a tighter policy stance.

Fed policymakers do not fully share this outlook, based on a recent Bloomberg survey of officials. Fewer than 13% of 48 respondents expect a rate increase at the September meeting. Most economists also see no change at the December 2027 decision either.

Bitcoin‘s chart structure still points toward higher levels despite the Fed rate hike concerns. Analyst Michaël van de Poppe expects a period of consolidation before the next upward push. He projects a move toward the $90,000 to $92,000 resistance zone, and bull markets typically avoid sharp pullbacks.

Ethereum Approaches $3,000 Despite Fed Rate Hike Concerns

Ethereum trades near $2,535 and faces resistance between $2,547 and $2,550. Analyst Ted Pillows notes the asset has returned to this key resistance level. A break above this zone could open the path toward higher price targets.

The next major resistance sits just above $2,800, according to Pillows’ analysis. Support levels rest near $2,215 and $1,965 if the price pulls back. A weekly close above $2,550 would clear the way for further gains.

Such a close could push Ethereum toward the $3,000 mark, Pillows suggests. The Fed rate hike decision could still disrupt this trajectory in the near term. Broader risk sentiment remains tied to the outcome of the September Fed meeting.

XRP Tests Key Support Amid Fed Rate Hike Uncertainty

XRP faces a more difficult setup than Bitcoin and Ethereum right now. The token dropped nearly 20% over three weeks, falling from $1.70 to $1.35. Analyst Ali Martinez tracks this decline through on-chain and whale activity data.

Whales sold or redistributed about 90 million XRP tokens over the past week. Daily active addresses fell 90.18%, dropping from 388,492 to 38,163. This decline points to a sharp pullback in network activity and engagement.

The $1.35 level stands as a decisive support zone for XRP, per Martinez. Roughly 2.29 billion tokens already changed hands at this price point. A recovery above $1.38 could send XRP back toward $1.60 and $1.68.

The Fed rate hike remains the dominant factor shaping crypto price action this week. Borrowing costs directly affect risk appetite across digital assets and equities alike. Traders will watch the September 16 announcement for further direction on Bitcoin, Ethereum and XRP.

An open-source Bitcoin seed generator has converted radioactive decay events into 12-word and 24-word BIP39 recovery phrases using an offline hardware device.

The Entropy32 Plus repository, published by developer Alexander Higgins in September 2026, contains the project’s firmware, circuit-board designs, fabrication files and printable enclosure. Higgins describes the device as an experimental, educational project and warns users not to trust it with substantial funds before an independent review.

Known as “The Universe Bifurcator,” the device takes pulses from a Geiger counter and measures the time between detected events. Its firmware converts comparisons between consecutive intervals into bits, collects a 512-bit input pool and processes the data with SHA-256.

Entropy32 Plus then formats part of the resulting hash as a standard BIP39 recovery phrase. The device operates without Wi-Fi, Bluetooth or persistent seed storage, according to its published design.

Entropy32 Plus measures time between radiation events

Radioactive decay occurs unpredictably at the level of individual atoms. Entropy32 Plus uses the timing of detected decay events as its physical source of randomness instead of relying solely on a software-generated value.

The current design accepts pulses through a 3.5-millimeter connection from a GQ Electronics GMC-320S Geiger counter. Its documentation says the counter can detect emissions from a radioactive source or background radiation.

After receiving a pulse, an LM393 comparator converts the counter’s analog signal into a digital input. The custom circuit board passes that signal to an ATmega328P microcontroller.

The project’s firmware records each accepted event using a microsecond timer. It compares the latest interval with the preceding one, producing a one when the new interval is longer and a zero when it is shorter.

Equal intervals are discarded. Measurements below 200 microseconds are rejected as possible glitches, while accepted comparisons continue until the device has collected 512 bits.

Higgins says this method uses pulse timing because the precise arrival of an individual decay event cannot be predicted. The developer does not claim that every collected comparison contributes one full bit of measured entropy.

SHA-256 conditions the raw Bitcoin seed data

Once the 512-bit pool is complete, Entropy32 Plus processes all 64 bytes through its bundled SHA-256 code. The firmware uses the first 16 bytes of the resulting hash for a 12-word phrase or all 32 bytes for a 24-word phrase.

According to the project, hashing is intended to reduce visible patterns linked to detector dead time, count-rate changes or correlations between measurements. Hash conditioning can spread available entropy across an output, but it does not prove how much unpredictability was present in the original data.

The firmware includes a startup test for SHA-256. It calculates the hash of “abc” and compares the result with a known value. The device stops before collecting entropy if the answer is incorrect.

Passing the self-test confirms that the implementation returns the expected result for that test vector. It does not test the Geiger counter, assess pulse independence or measure the minimum entropy entering the hash.

The project collects twice as many comparison bits as the maximum 256-bit BIP39 input it produces. Until the physical source undergoes formal measurement, the repository does not establish how much usable entropy each comparison contains.

The device maps conditioned data to BIP39 words

Following SHA-256 conditioning, the device applies the process defined in the BIP39 specification. BIP39 converts an approved entropy length into a mnemonic sentence selected from a standardized list of 2,048 words.

For a 12-word phrase, Entropy32 Plus uses 128 bits of conditioned data and calculates a four-bit checksum. The combined 132 bits are divided into twelve 11-bit groups, with each group selecting one word.

Its 24-word setting uses 256 bits and an eight-bit checksum. Dividing the resulting 264-bit sequence produces 24 word indexes.

Crypto.news’ seed phrase guide explains that recovery phrases hold the information needed to restore wallet access. Anyone who obtains the correct words in their proper order can recreate the wallet’s keys.

A seed phrase is not itself a collection of independently generated words. As crypto.news explained in its guide to public and private keys, modern Bitcoin wallets derive many private keys from one master seed. Weakness in the original entropy can therefore affect every address generated from it.

Entropy32 Plus compiles the complete BIP39 English list into its firmware. The wordlist occupies 13,117 bytes, or roughly 43% of the microcontroller’s flash capacity, according to the repository.

With the OLED interface, SHA-256 implementation and collection logic included, the compiled program uses 30,006 of the chip’s 30,720 available bytes. Only 714 bytes remain unused.

Offline design keeps seeds away from connected devices

The published hardware files list no wireless communications hardware. Users operate the generator through two buttons and read the phrase from a 0.91-inch OLED screen.

Generated word indexes remain temporarily in the microcontroller’s RAM. Once the user records the phrase, pressing both buttons opens a confirmation process that overwrites the word array and restarts entropy collection.

The firmware clears the original pool after copying it for processing. Temporary hash, checksum and entropy buffers are overwritten after the BIP39 indexes have been calculated.

According to the developer, the device does not save a recovery phrase to persistent memory. The open-source design does not include a secure element or a mechanism that proves the installed firmware matches the public code.

Physical isolation removes several network-based attack routes, but it does not verify that a device was assembled correctly or loaded with trusted software. A modified unit could display predetermined words or retain generated data without changing its outward appearance.

Crypto.news’ wallet security guide recommends keeping recovery phrases away from phones, cloud accounts, photographs and other connected systems. Entropy32 Plus’s screen-based process is consistent with offline transcription, provided the hardware and firmware are trusted.

Independent entropy testing remains unfinished

The repository states that the Geiger-based entropy source has not been tested under NIST Special Publication 800-90B. NIST’s methodology covers the evaluation of physical entropy sources and includes separate procedures for independent and non-independent data.

Higgins calls for recording raw inter-arrival times over a long period and examining them with NIST’s non-IID minimum-entropy estimators. The firmware comments warn that general statistical test results alone would not establish sufficient entropy.

“Please verify the entropy source you intend to use otherwise understand that you will be using the device at your own risk,” the README states.

The developer recommends mixing the Geiger-derived data with another independently validated source before creating a wallet for valuable funds. No outside audit, NIST assessment or public raw-event dataset was included in the repository as of Sept. 13.

Past wallet failures show why entropy testing extends beyond confirming that the final words follow BIP39 formatting. Crypto.news reported that Kraken’s security chief called for independent wallet testing after a Coldcard seed-generation vulnerability.

A related technical review explained how weak entropy can expose Bitcoin wallets without revealing which people use the affected devices. Attackers can generate possible seeds, derive their public addresses and search the blockchain for matches.

Crypto.news later reported that predictable seed generation remained exploitable after the underlying flaw had existed for years. Correcting faulty firmware cannot repair phrases generated earlier; affected users must create new wallets and transfer their assets.

Entropy32 Plus remains under active development. Its commit history shows an initial commit dated Sept. 4, followed by firmware, circuit-board and enclosure changes. The repository had no tagged production release or published timetable for completing an independent security assessment as of Sept. 13.

Mexican authorities have seized roughly 300 GPUs from a suspected illicit crypto mining farm in Puebla while investigating possible electricity theft and money laundering.

Reuters reported on Sept. 12 that investigators discovered the operation in the mountainous municipality of Tlaola, near infrastructure connected to a hydroelectric system.

The equipment included approximately 80 medium-voltage terminals, eight satellite antennas and a pedestal transformer. Authorities described the site as the fourth comparable mining operation found in the region since early 2025.

No agency has publicly identified the cryptocurrency being mined. Investigators have not named an organized crime group, disclosed related wallet addresses or announced any arrests.

Mexico crypto mining raid uncovered industrial equipment

Personnel from Mexico’s Attorney General’s Office, the Mexican Navy and Puebla’s Public Security Secretariat participated in securing the property, according to a local report published after the operation.

Authorities found around 300 specialized computers operating inside the building. The medium-voltage connections and transformer indicate that the facility had access to an industrial-scale electricity supply, although investigators have not released its measured consumption.

Satellite antennas supplied communications infrastructure in an area where fixed internet access may be limited. Officials have not identified the satellite provider or explained whether subscriber records are being sought as part of the investigation.

Residents of nearby communities told Reuters that the equipment’s mechanical noise could be heard from one kilometer away. The building stood roughly two kilometers from the nearest village, along a lightly traveled road in Puebla’s Sierra Norte region.

Puebla security chief Francisco Sánchez González said the facility’s electricity demand, operating noise and isolated location drew attention from authorities. He told reporters that officials had been following reports of suspected mining activity near the Nuevo Necaxa hydroelectric system.

Cryptocurrency mining is not prohibited in Mexico. The criminal inquiry concerns the source of the electricity and whether assets generated at the site were connected to money laundering or other illicit activity.

Electricity theft remains an allegation under investigation

Mexican authorities are examining whether the farm drew electricity without authorization from infrastructure near the hydroelectric dam. Neither the Federal Electricity Commission nor prosecutors have publicly confirmed the alleged illegal connection.

Mexico’s Attorney General’s Office declined Reuters’ request for further comment because the case remains active. Officials have not released an inspection report, estimated electricity loss or evidence showing how the facility’s power supply was connected.

“If they were stealing the electricity, the main costs of the operation would be, well — nothing,” Samuel Leon, an energy-theft specialist at Mexico’s Iberoamericana University, told Reuters. His statement was conditional because investigators have not completed their findings. Electricity commonly represents one of a mining farm’s largest operating expenses. Powerful computing units run continuously while cooling equipment removes the heat generated by the machines.

Other governments have uncovered mining sites supported by bypassed meters or unauthorized power connections. As crypto.news reported, Malaysian police seized 73 Bitcoin miners during electricity-theft raids in July 2026.

Thai authorities confiscated 996 Bitcoin mining machines after the country’s electricity authority said operators had tampered with meters. The Thai case involved confirmed meter interference, while Mexico’s Puebla investigation has not reached a comparable public finding.

Federal Electricity Commission figures cited by El País recorded 6,346 gigawatt-hours of nontechnical losses between January and July 2024. The category covered electricity theft, meter manipulation and illegal connections across the utility’s system, carrying an estimated commercial value of 13.8 billion pesos.

The national data does not measure losses from the Tlaola operation. Authorities have not disclosed when the Puebla site began operating or how much electricity it consumed.

Suspected cartel involvement has not been established

Reuters described the farm as a suspected method for laundering illicit proceeds, citing analysts who study organized crime and cryptocurrency. Mexican authorities have said they are examining whether the mined assets could have been used to make criminal funds appear legitimate.

Investigators have not publicly linked the facility to a named cartel. No evidence released so far establishes who financed, managed or benefited from the operation.

“Drug cartels appear to have reached a new level of sophistication,” Mexico-based security analyst David Saucedo told Reuters. He said installing the equipment would require technical knowledge and financial support that a well-funded criminal organization could provide. Saucedo’s assessment does not constitute an official finding. The same infrastructure could be operated by other criminal groups or independent electricity thieves, and prosecutors have not disclosed ownership records for the property or equipment.

Chainalysis Latin America specialist Caio Motta said organized crime groups seek mining locations where electricity is inexpensive or can be stolen in territory under their influence. “[Such operations may be placed where criminals] are able to steal electricity and establish a large infrastructure to mine cryptocurrency,” Motta told Reuters. Chainalysis has not published wallet-level evidence connecting the Tlaola facility to a cartel.

Mining can produce newly issued cryptocurrency through computing work. Converting criminal cash into mining hardware can create a separate income stream, but officials have not explained the suspected laundering method in the Puebla case. The lack of disclosed wallet addresses prevents an independent review of any coins produced, transfers received or exchanges used. Authorities have not identified the mining pool, software, digital asset or destination wallets connected with the seized machines.

Global illicit crypto totals require careful context

Chainalysis estimated that cryptocurrency addresses identified as illicit received at least $154 billion during 2025, compared with roughly $59 billion in 2024. The company described its figure as a preliminary estimate that could rise when researchers identify more criminal addresses.

Transactions involving sanctioned entities drove much of the increase. Chainalysis recorded a 694% rise in value received by sanctioned services and jurisdictions, while stablecoins represented 84% of the illicit transaction volume measured by the company.

The $154 billion estimate covers several categories, including scams, stolen funds, sanctions activity, ransomware and illicit services. It does not represent cartel transactions alone or the amount of cryptocurrency produced through illegal mining. According to Chainalysis, known illicit activity still represented less than 1% of total cryptocurrency transaction volume. The firm’s data covers transactions recorded on public blockchains and excludes activity that cannot be connected to identified illicit addresses.

Investigators can trace transfers on transparent blockchains once they identify a relevant address, but attribution often requires exchange records, device evidence or information from service providers. Privacy-focused assets and transactions occurring inside centralized platforms may present further limits. Motta said law enforcement agencies are becoming better equipped to investigate cryptocurrency use by organized crime. Mexican officials have not said whether blockchain analytics companies are participating in the Tlaola case.

Investigators are searching for more hidden farms

Three comparable crypto mining facilities were discovered during 2025 near the hydroelectric dam in northern Puebla, Reuters reported. The latest seizure is the fourth identified operation in the area since the beginning of that year.

Local authorities are working with neighboring states to determine whether other mining properties remain active. Officials have not named the participating states or published a timetable for inspections. Investigators are expected to examine the seized computers, internet equipment, electricity connections and property records. A forensic review could determine which assets were mined and where any rewards were sent, provided the machines retain usable data.

No public deadline has been set for an investigative report. Mexico’s Attorney General’s Office has not announced criminal charges, while the building and approximately 300 mining units remain under official custody.