The cryptocurrency market was a sea of red after a brutal week left traders reeling as major cryptocurrencies traded in bearish territory. The drop has pushed the market into negative territory for September, although Bitcoin (BTC) is holding on to a 1% gain for the month. The markets have shed over 2% in the past 24 hours, with the market cap down to $3.75 trillion.
BTC slumped to a four-week low as selling pressure intensified. The flagship cryptocurrency fell to an intraday low of $108,776 before registering a marginal recovery and reclaiming $109,000. BTC is down over 2% during the ongoing session, trading around $109,393, with sellers in control.
Ethereum (ETH) slumped below the key $4,000 mark and is down nearly 3%, trading around $3,910. Ripple (XRP) is down almost 4%, trading around $2.75, while Solana (SOL) lost the key $200 level and is trading around $195, down over 5%. Dogecoin (DOGE) is down 4%, while Cardano (ADA) is down 3%, trading around $0.772. Chainlink (LINK), Stellar (XLM), Hedera (HBAR), Litecoin (LTC), Toncoin (TON), and Polkadot (DOT) also registered notable declines over the past 24 hours.
TeraWulf Planning $3B Debt-Finance Expansion
Google-backed crypto miner TeraWulf plans to raise around $3 billion to expand its data centers. TeraWulf's finance head, Patrick Fleury, stated that Google is supporting the deal. The debt will be issued through the high-yield bond market or leveraged loans. Morgan Stanley is overseeing the transaction, which could be executed as early as October. The deal is also being reviewed by credit rating agencies, with expectations it will land between BB and CCC, the typical range for junk-rated debt. However, Google’s support could help secure a higher grade.
TeraWulf’s push comes amid growing demand for artificial intelligence infrastructure, which has outstripped supply. AI’s rapid growth has created a severe crunch of data center space, graphics processing chips, and electricity access. Mining firms like TeraWulf that operate large-scale facilities have become attractive partners for companies looking to expand into AI computing.
Tokenized TradFi Assets Will Redefine Crypto
Sergey Nazarov, the co-founder of Chainlink Labs, believes the path towards tokenizing the financial system is now clear with Paul Atkins as the Chair of the United States Securities and Exchange Commission (SEC). Nazarov believes it will not be an easy task as there are various challenges regarding the tokenization of data, cross-chain connectivity, compliance, and several other areas. However, he stated that the consequences of tokenizing TradFi assets could be revolutionary. Nazarov stated,
“What people don’t fully appreciate about TradFi [traditional finance] is its sheer scale.”
Nazarov credited President Donald Trump for ushering in the global acceptance of crypto and tokenization of assets, adding that regulators warned investors to stay away from crypto during previous administrations.
“Don’t touch this stuff; it’s illegal. But now regulators are saying, ‘Not only is it not illegal, we want you to do it. So, the movement of significant amounts of TradFi assets on-chain seems inevitable, as long as the macroeconomy doesn’t crater.”
According to Nazarov, a cratering of the economy could happen if it moves from a risk-on to a risk-off environment. However, he believes tokenization will occur despite the downturn.
“All these new tokenized assets need an active market where people want to try new things, trade, and deploy capital into new instruments. Right now, the conditions are positive: Interest rates are expected to be cut, and the SEC chairman is making speeches about how everything will be tokenized. I can’t imagine a more positive scenario.”
Nazarov also believes Trump has delivered on his promise of being the “crypto president.”
“We were already having meetings with the SEC early in the year. I’d say she already had a green light to start doing things early in the year. So, a lot of work was already underway, and then, it became more public once it was clear who the chairman would be. At that point, risk and doubt were removed from the equation.”
MSTR Stock In Trouble
Strategy’s (MSTR) stock price fell below a key support level as BTC crashed below $110,000 and its mNAV multiple fell to a year-to-date low. MSTR fell to $297 on Thursday, its lowest level since April, and 35% below its all-time high. The crash brought its market capitalization from $129 billion to $84 billion. The stock has plunged due to the ongoing crypto market crash, with BTC falling below $110,000 for the first time since September 1. Analysts highlighted that it has formed a head-and-shoulders pattern, indicating further downside in the near term. Meanwhile, BTC has formed a rising wedge on its weekly chart, suggesting markets could be witnessing the start of prolonged bearish sentiment.
A prolonged bear market could spell trouble for Strategy and its stock price. The company has established itself as the largest corporate holder of Bitcoin, holding 639,835 BTC, valued at $69 billion at current prices. BTC’s decline means that Strategy's premium has also plunged. Strategy’s mNAV has also dropped to a year-to-date low of 1.195. A falling mNAV is risky because Strategy uses its premium to raise capital and fund Bitcoin purchases.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has wiped out nearly all of its monthly gains after a brutal week dragged the price below the key $110,000 level. The flagship cryptocurrency has faced substantial selling pressure all week, starting with Monday’s flash crash. Buyers attempted a recovery on Wednesday as the price rose above $113,000 and settled at $113,348. However, selling pressure returned on Thursday as BTC plunged almost 4%, slipping below $110,000 and settling at $109,035. The current session sees the price up 0.49%, trading around $109,585.
On-chain analysis shows that BTC could be headed for a deeper correction as cumulative realised long-term holder profit-taking is reaching levels seen during previous cycle tops. According to the analysis, long-term BTC holders realized 3.4 million BTC in profit. ETF inflows have also slowed, indicating exhaustion following the Federal Reserve’s rate cut last week. The flagship cryptocurrency fell below key support levels on Thursday, briefly dropping below $109,000 on Coinbase late Thursday before rebounding. Analysts fear bears could drag prices even lower, with the rebound quickly losing momentum. 10x Research head Markus Thielen stated,
“The bounce back from that dip quickly lost momentum, and with prices now hovering close to this level again, another wave of stop-loss selling could emerge. This comes at a time when many are positioned for a Q4 rally — making the bigger surprise not a surge higher, but a correction instead.”
Meanwhile, Glassnode analysts believe BTC could be heading for a cooling phase. Glassnode stated that the realized profit/loss ratio shows that profit-taking has crossed 90% of coins moved three times this cycle, and markets have just stepped away from the third such extreme.
“Historically, these peaks have marked major cycle tops, and probabilities favor a cooling phase ahead.”
Thielen also pointed out that the Spent Output Profit Ratio (SOPR) is showing concerning behavior, with some BTC holders beginning to sell at a loss, indicating significant market stress. However, buyers are stepping in, with the aggregate spot orderbook bid-ask ratio tilting towards buyers. The aggregate spot orderbook bid-ask ratio measures the relationship between the number of buy orders (bids) and sell orders (asks) in an order book.
“A bid/ask ratio that is greater than 0 indicates that there are more buy orders than sell orders in the order book, which could suggest that there is greater demand for the asset at the current price level.”
BTC ended the previous weekend in the red, dropping 0.56% and settling at $115,314. The price faced volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as BTC registered a marginal increase and settled at $115,381. Bullish sentiment intensified on Tuesday as the price rose 1.26% to cross $116,000 and settle at $116,832. Selling pressure returned on Wednesday as BTC fell to an intraday low of $114,724. It recovered from this level to settle at $116,484, ultimately dropping 0.30%. BTC reached an intraday high of $117,998 on Thursday. However, it could not stay at this level and settled at $117,117. The price lost momentum on Friday, dropping 1.22% to $115,690.
Source: TradingView
Price action was mixed over the weekend, with BTC registering a marginal increase on Saturday. However, it was back in the red on Sunday, dropping 0.41% to $115,282. The flagship cryptocurrency plunged to an intraday low of $111,761 on Monday as bearish sentiment intensified. It recovered from this level to reclaim $112,000 and settle at $112,736. Buyers attempted a recovery on Tuesday as BTC reached an intraday high of $113,357. However, it failed to stay at this level and settled at $112,017, ultimately dropping 0.64%. The price fell to an intraday low of $111,066 on Wednesday as selling pressure intensified. Despite the bearish sentiment, it recovered to register a 1.19% increase and settle at $113,348. Bearish sentiment intensified on Thursday as BTC plunged nearly 4%, slipping below $110,000 and settling at $109,035. The current session sees BTC up 0.51%, trading around $109,598, as buyers look to reclaim the crucial $110,000 level.
Ethereum (ETH) Price Analysis
Ethereum (ETH) fell below the key $4,000 level on Thursday as selling pressure dragged prices lower. The altcoin has struggled to regain momentum after Monday’s crash and dropped to $4,155 by Wednesday. Selling pressure returned on Thursday as ETH fell almost 7%, slipping below $4,000 to $3,876. The price has recovered during the ongoing session, up 1.62% to $3,962.
Meanwhile, Ethereum ETFs suffered another day of outflows, losing over $250 million after registering the fourth consecutive day of outflows. According to data from SoSoValue, the bulk of the outflows were from Fidelity’s FETH fund, which registered $158 million in outflows. The substantial outflows highlight the growing bearish sentiment around ETH ETFs. Grayscale’s ETHE and Bitwise’s ETHW registered outflows of $30 million and $27 million, respectively. Meanwhile, VanEck’s ETHV saw outflows of $1.4 million. The withdrawals are the largest single-day redemption this week, and take total outflows for the week past $540 million.
The substantial outflows have compounded ETH’s price struggles, with ETH dropping below the $4,000 mark. The altcoin has fallen nearly 15% over the past week, with the consistent downward trend erasing a substantial portion of recent gains.
ETH ended the previous weekend in the red, dropping 1.27% and settling at $4,608. Sellers retained control on Monday as the price fell nearly 2%, slipping below $4,600 and settling at $4,527. ETH dropped 0.55% on Tuesday, settling at $4,502. Despite the overwhelming selling pressure, the price recovered on Wednesday, rising 1.99% and settling at $4,591. However, it was back in the red on Thursday, registering a marginal decline and settling at $4,589. Selling pressure intensified on Friday as ETH fell 2.58%, slipping below $4,500 and settling at $4,471.
Source: TradingView
ETH registered a marginal recovery on Saturday but was back in the red on Sunday, dropping 0.73% to $4,449. Selling pressure intensified on Monday as ETH started the week in bearish territory. As a result, it fell nearly 6%, falling to an intraday low of $4,083 before settling at $4,202. Sellers retained control on Tuesday as ETH fell almost 1% to $4,166. ETH registered a marginal decline on Wednesday after buyers lost momentum, dropping to $4,155. Bearish sentiment intensified on Thursday as the price fell nearly 7%, slipping below $4,000 to $3,876. The price has recovered during the ongoing session, and is up 1.38%, trading around $3,930.
Solana (SOL) Price Analysis
Solana (SOL) has registered a marginal recovery during the ongoing session as it looks to reclaim the crucial $200 level. The altcoin faced tremendous selling pressure over the week, plunging nearly 7% on Monday and dropping to a low of $205 on Wednesday. Bearish sentiment intensified on Thursday as SOL fell almost 9%, slipping below $200 to $192. SOL is trading around $194 during the ongoing session.
SOL’s MACD reveals extreme bearish sentiment, with analysts stating prices could go below $190. The altcoin has dropped nearly 20% over the past week, erasing all of the gains made during its ascent to $253.
However, a key spot ETF ruling could change the narrative around SOL. Grayscale’s spot Solana ETF is set for its first approval deadline on October 12. The decision could unlock institutional capital flows to SOL, similar to what we have seen with BTC and ETH over the past year. The REX Osprey Staking SOL ETF already offers investors exposure to SOL. However, its structure is less significant than a pure spot product. On the other hand, a Grayscale spot ETF will allow direct institutional participation, unlocking deeper liquidity and broader adoption.
The SEC is also set to review five other ETF applications, with a final ruling due on October 16. These include ETF proposals from Bitwise, 21Shares, VanEck, Grayscale, and Canary.
Solana (SOL) reached an intraday high of $249 on Sunday (September 14). However, it could not stay at this level and settled at $240, dropping 0.99%. Selling pressure intensified on Monday as the price fell by over 2% to $234. Despite the overwhelming selling pressure, SOL recovered on Tuesday, rising 1.06% and settling at $226. Bullish sentiment intensified on Wednesday as the price rose over 3% to cross $240 and settle at $244. SOL reached an intraday high of $253 on Thursday. However, it could not stay at this level and settled at $247, ultimately rising 1.11%. Selling pressure returned on Friday as the price fell 3.59% to $238.
Source: TradingView
Price action was mixed over the weekend as SOL registered a marginal increase on Saturday before dropping 1.34% on Sunday and settling at $236. Bearish sentiment intensified on Monday as SOL fell nearly 7%, dropping to an intraday low of $214 before settling at $220. Sellers retained control on Tuesday as the price fell by over 3% and settled at $213. SOL fell almost 1% on Wednesday and settled at $211. Beamish sentiment intensified on Thursday as SOL plunged nearly 9%, falling from $200 to $192. The current session sees the price marginally down as buyers and sellers struggle to establish control.
Filecoin (FIL) Price Analysis
Filecoin (FIL) started the previous week in the red, dropping nearly 4% to 2.41. It recovered on Tuesday, reaching an intraday high of $2.66 before settling at $2.55, ultimately rising 5.99%. FIL faced volatility on Wednesday and Thursday as buyers and sellers struggled to gain control. Buyers ultimately gained the upper hand as the price rose marginally and settled at $2.57. Selling pressure returned on Friday as FIL fell almost 5% to $2.45.
Source: TradingView
Price action remained bearish over the weekend as FIL fell 0.39% on Saturday and nearly 2% on Sunday to $2.39. Bearish sentiment intensified on Monday as the price fell 5.99% to $2.25. Sellers retained control on Tuesday as FIL fell 0.56%. Buyers attempted a recovery on Wednesday as the price reached an intraday high of $2.28. However, it lost momentum after reaching this level and fell to $2.21. Selling pressure intensified on Thursday as FIL fell over 4% and settled at $2.11. The current session sees the price down 0.36% at $2.10.
Jupiter (JUP) Price Analysis
Jupiter (JUP) started the previous weekend in bearish territory, dropping almost 6% on Friday and settling at $0.525. Price action was mixed over the weekend as JUP rose 0.42% on Saturday before dropping 1.19% on Sunday and settling at $0.521. Selling pressure intensified on Monday as the price fell by over 9% to $0.473.
Source: TradingView
Sellers retained control on Tuesday as JUP fell 1.89% and settled at $0.464. The price reached an intraday high of $0.484 on Wednesday as buyers and sellers struggled to take control. Buyers ultimately gained the upper hand as JUP rose 1.51% and settled at $0.471. Selling pressure returned on Thursday as the price fell almost 10% and settled at $0.426. JUP is marginally down during the ongoing session, trading around $0.427.
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.
