Crypto Market

BTC and ETH Market Insight

Both BTC and ETH had a steady recovery during the week driven by the ongoing institutional demand and softer-than-expected U.S. inflation. On September 10, U.S. Producer Price Index (PPI) showed a 0.1% decline vs +0.3% expected, stoking Fed rate cut bets. BTC surged to $113,700. With general market sentiment improving, we see that the altcoins with higher beta outperformed BTC and ETH. BTC dominance dropped from 58.46% to 57.45% during the week. Significant trade interest and volume was diverted from majors to alts with new listings of LINEA, PUMP (on Binance), AVNT and HOLO.

Upcoming Macro Calendar - Source: Trading Economics

Options Market

Realized volatility slumped this week, with the 7-day RV dropping to 22% for BTC and 35% for ETH. The 7-day volatility carry for ETH now stands at 27%, signaling a challenging period for gamma holders over the past week. That said, the market continues to anticipate that ETH will remain more volatile than BTC over the long term. Despite the Nasdaq's tightened rules for DATs, ETF net inflows resumed this week. Put skew also eased relative to last week, trending toward neutrality for both majors.

Altcoins and Blockchain News

• The U.S. Congress has requested the Treasury Department to develop a Bitcoin strategic reserve custody plan.
  
  
• Tether’s CEO announced the company is launching a new U.S.-based stablecoin called USAT.
  
  
• According to The Information, citing anonymous sources, prediction market platforms Polymarket and Kalshi are considering new funding rounds at valuations of $9 billion and $5 billion, respectively.
  
  
• BlackRock is exploring tokenization of traditional assets such as ETFs using blockchain technology.
  
  
• South Korea will lift its ban on VC investments in crypto companies on September 16.
  
  
• Morgan Stanley expects the Federal Reserve to cut interest rates by 25 basis points in January, April, and July 2026.
  
  
• According to The Block, Polymarket has integrated Chainlink’s oracle system to provide verifiable data and automate market resolution.
  
  
• As of September 14, according to fee.pump.fun, pump.fun has repurchased approximately $92.43 million worth of PUMP tokens since its buyback began on July 15, reducing total circulating supply by 6.505%.
  
  
• Hyperliquid’s stablecoin USDH is currently leading the bidding on Native Markets with 71.18% of staked support; 10 out of 19 validator nodes have expressed support for Native Markets.
  
  

Macro

CPI data comes in line with the market expectation and the market expected the Fed to cut rates on September 17th. The major indices finished the week with solid gains: the DJIA added +1.0%, the S&P 500 +1.6%, and the Nasdaq +2.0%. The Chinese stocks also finished a strong week: the Shanghai Composite Index added +1.52%, the CSI 300 advanced +1.38% and the Hang Seng index +3.82%.