Over the weekend, the leading cryptocurrency entered a consolidation phase, stabilizing around the psychological threshold of $84,000. The situation is mixed: on the one hand, the asset is supported by an influx of institutional funds and corporate backing; on the other hand, it is under pressure from the U.S. debt market and regulatory uncertainty.
This morning, the BTC price stood at $83,981.2, showing a slight decline of 0.27% over the past 24 hours. It is worth noting that on Friday, the price briefly rose to $85,000 but quickly recovered after falling below $83,000 earlier in the week.
Macroeconomic Pressure: Bonds Break 2007 Records
The main drag on the growth of risky assets was a sharp surge in U.S. Treasury yields. The yield on 10-year U.S. Treasury bonds exceeded the 5.2% threshold, marking a 19-year high. When risk-free rates are this high in the traditional market, large asset management firms are more inclined to shift funds into safe-haven instruments, causing liquidity to temporarily flow out of the crypto market.
Institutional Support and MicroStrategy’s Moves
Despite macroeconomic pressures, Bitcoin continues to attract steady capital inflows from major players. For example, spot Bitcoin ETFs in the U.S. attracted a significant $2.65 billion over five trading sessions (through Wednesday). The bulk of the funds came from BlackRock’s IBIT and Fidelity’s FBTC funds.
MicroStrategy’s moves are also noteworthy. The largest public holder of Bitcoin aims to revamp its capital-raising model. The company has proposed introducing daily dividend payments across four issues of its preferred shares. This is intended to make the securities more attractive and liquid, which will help the company raise funds more cheaply in the future to purchase a new batch of BTC.
Regulatory Challenges: Personnel Changes in the U.S. and Taxes in Germany
This week’s news from regulators has been quite mixed.
The SEC is undergoing leadership changes: On October 2, Hester Peirce, often referred to as “Crypto Mom,” is stepping down from her position as commissioner. She was one of the industry’s leading advocates and championed clear rules regarding tokenization and staking.
Congress is also in a lull: the legislative process has stalled because the Senate has yet to pass the Digital Asset Market Transparency Act. Meanwhile, there has been a leadership change at the Blockchain Association: the organization’s president, Summer Mersinger, is stepping down, and Christine Smith will temporarily assume the role of director.
In Germany, the situation is no better. A proposed tax reform has sparked a wave of criticism from the crypto community. The authorities want to use a substitute valuation system: if an investor cannot provide documentation confirming the purchase price of the coins, up to 50% of the total proceeds from the sale may be taxed.
What’s Happening with Altcoins
While Bitcoin is treading water, the altcoin market is showing moderately positive momentum.
Ethereum (ETH): $2,689.67 (+0.35%)
XRP: $1.5566 (+1.55%)
Solana (SOL): $120.67 (+3.64%)
BNB: $774.28 (+0.12%)
Cardano (ADA): $0.2565 (+3.39%)
Dogecoin (DOGE): +3.05%
Shiba Inu (SHIB): +2.60%
TRUMP: -1.31%
Overall, the market is currently in a precarious balance. The influx of institutional funds and corporate activity are preventing Bitcoin from falling sharply, but competition from bonds and legal uncertainty are so far preventing the price from breaking through the $85,000 level.