Another historic week is in the books for the crypto market. After enduring over 14 days on a stagnant, somewhat downward trend, digital assets came back with a vengeance this week. In a week that completely shifted investors’ sentiment towards the market, September 30—October 5 put crypto on the best possible path towards a positive end to 2025.
Institutions on The Move
Several developments in the institutional side of the market continued to add fuel to the fire. For starters, the projections for Strategy’s (MicroStrategy) earnings in Q3 are shaping up to be a home run, giving institutional investors even more reason to double down. Speaking of Strategy, Bitcoin’s price increase throughout the week pushed the firm’s BTC treasury to its highest valuation ever.
Meanwhile, another Bitcoin treasury giant, “Metaplanet”, had to double its earnings forecast after a massive ¥2.4B Bitcoin income in Q3. Also, Coinbase has hit $1B in on-chain loans using Bitcoin as collateral via Morpho on the Base network, and now aims for $100B.
Vanguard, the second-largest asset manager in the world, finally started to catch on to the digital trend. Known as one of the most conservative fund managers when it comes to crypto exposure, Vanguard appears to finally be opening up to the idea of listing crypto ETFs on its platform.
The CME Group is actively working to offer around-the-clock crypto futures trading on its platform.
Finally, yet another billionaire crypto treasury made the news this week. A newly-formed company, “Avalanche Treasury Co.” announced this week plans to go public, while also raising up to $1 billion in a new AVAX treasury.
Regulatory Developments of The Week
Uncertainty prevailed at the start of the week as the market braced for a potential government shutdown in the United States.
Meanwhile, the commissions CFTC and SEC held a roundtable discussion this week, as regulators declared an end to their turf war and committed to harmonizing crypto oversight, aiming to simplify listing, custody, and market surveillance rules.
In one of the most significant regulatory developments of the week, the SEC appears keen on pushing tokenized assets on Wall Street. According to recent reports, the Commission is on the move to allow companies to offer their shares on the blockchain.
The Senate Finance Committee, alongside the U.S. Treasury and IRS, issued an interim guidance clarifying that crypto-focused companies are not required to pay taxes on unrealized profits. This move impacted crypto businesses very significantly. MicroStrategy, for example, will now be exempt from billions in CAMT taxation.
Crypto’s Bull Run
Amidst a government shutdown in the U.S., many were pricing in that selling pressure would prevail in the crypto market. That notion couldn’t be more wrong, however. Digital assets experienced incredible momentum in the latter half of the week, driving the total cryptocurrency market capitalization to reach its highest-ever value at $4.18 trillion.
Millions of dollars of short positions were wiped out, leaving thousands of investors betting against the market to close their positions. At the same time, it is hard to determine precisely why—financial markets appear to have already started to price in lower interest rates expected by the end of this month.
Bitcoin got close to price discovery by Thursday, while assets like Ethereum and Dogecoin saw renewed momentum.
Inflation Prints Next Week
After a week that started off shaky but ultimately ended up seeing a stronger-than-expected crypto market, next week promises even more exciting developments for crypto investors.
Two of the most important American inflation reports, the Consumer Price Index (CPI) and the Producer Price Index (PPI), are coming out, giving us a more accurate picture of inflation in the U.S. and how it will affect the Fed’s policy.
Other than that, we’ll also keep a look at any potential come-to-terms between Republicans and Democrats. A potential deal could end the government shutdown before more furloughs, which would likely reflect positively on market sentiment.
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