The cryptocurrency market’s recovery stalled once again as major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), fell back into bearish territory. The crypto market cap is down nearly 1%, with altcoins leading the selloff. The drop is largely due to profit-taking, rising Bitcoin dominance, and negative crypto-equity correlations.
BTC traded above $114,000 on Wednesday as buyers mounted a recovery. However, it lost momentum on Thursday, falling to an intraday low of $111,686 before moving to its current level. BTC is down almost 1% over the past 24 hours, with sellers in control.
Meanwhile, ETH is down over 4% as it struggles to stay above the key $4,000 mark. The altcoin has dropped nearly 13% over the past week. ETH traded above $4,200 on Wednesday but lost momentum early on Thursday. As a result, it briefly fell below $4,000 before moving to its current level of $4,012. Ripple (XRP) is marginally down, trading around $2.85, while Solana (SOL) is down almost 3% as sellers look to drive it below the key $200 mark. Dogecoin (DOGE) is down over 2%, while Cardano (ADA) is down nearly 3%, trading around $0.791. Chainlink (LINK), Stellar (XLM), Hedera (HBAR), Litecoin (LTC), Toncoin (TON), and Polkadot (DOT) have also registered notable declines over the past 24 hours.
Crypto ETFs Set To Flood US Markets
Prominent asset managers are queuing up to launch cryptocurrency ETFs after the United States Securities and Exchange Commission (SEC) streamlined the approval process. The updated standards, announced last week, could lead to heightened demand for crypto exchange-traded products (ETPs) tied to prominent altcoins like Solana (SOL). Currently, 21 US ETFs track Bitcoin (BTC) and Ethereum (ETH), or a combination of both. Additionally, the SEC has several more filings for new ETFs that it must approve. Steven McClurg, founder of Canary Capital Group, stated,
“We've got about a dozen filings with the SEC now, and more coming. We're all getting ready for a wave of launches.”
Financial institutions have rushed to update their filings since the SEC streamlined the approval process. The regulator has also asked for feedback and specific comments from issuers. According to sources familiar with the developments, a final list of amendments could be filed as early as this week. Teddy Fusaro, president of Bitwise, stated,
“Those filings are pretty far along in the review process. These are the rules we had been anticipating.”
Australia To Tighten Oversight Of Crypto Exchanges
Australia is set to tighten rules and regulations governing crypto exchanges and service providers. Australian authorities have released draft regulations that will extend laws governing the finance sector to cryptocurrency exchanges. Assistant Treasurer Daniel Mulino called the legislation “a cornerstone of our digital asset roadmap.”
“This is a preliminary version of the legislation, and we are seeking stakeholder feedback on its effectiveness and clarity before proceeding further.”
Currently, cryptocurrency exchanges in Australia must only register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). AUSTRAC has over 400 cryptocurrency exchanges registered with it. However, most of them are inactive. Mulino added that the draft legislation will create two new financial products under the Corporations Act: a digital asset platform and a tokenized custody platform. Mulino explained,
“This means digital asset platform and tokenized custody platform service providers will need to hold an Australian Financial Services License.”
He added that the legislation has “targeted rules for key activities,” including wrapped tokens, public token infrastructure, and staking. The platforms will also be subject to a “suite of obligations designed to accommodate the unique characteristics of digital assets.”
“Failures of digital asset businesses have highlighted the consumer risks, particularly where operators pull and hold client assets without consistent safeguards. This is about legitimizing the good actors and shutting out the bad. It is about giving businesses certainty and consumers confidence.”
Bitcoin, Ethereum ETFs Register Substantial Outflows
Bitcoin and Ethereum ETFs registered a combined outflow of $244 million on September 23, the second consecutive day of substantial investor withdrawals. Investors are repositioning themselves after the Federal Reserve rate cut and upcoming inflation data. According to data from SoSoValue, spot Bitcoin ETFs saw $103 million in outflows, while Ethereum ETFs saw $140 million in redemptions.
Fidelity’s FBTC led the outflows among Bitcoin ETFs with $76 million, followed by ARK 21Shares ARKB, which registered outflows of $27.9 million. Meanwhile, Grayscale’s GBTC, VanEck’s HODL, and Valkyrie’s BRRR registered no substantial net flows.
Fidelity’s FETH accounted for most of the losses among Ethereum ETFs, with over $140 million withdrawn in a single day. This was followed by Grayscale’s ETH fund with $36 million in outflows. Bitwise’s ETHW registered $23 million in withdrawals, while Grayscale’s ETHE registered $17.1 million in redemptions.
Uncertainty Grows Around New CFTC Chair
Uncertainty around former CFTC commissioner Brian Quintenz’s appointment as the next CFTC Chair is growing amid reports that President Trump is considering other candidates. According to reports, the Trump administration is vetting several candidates to succeed acting Chair Caroline Pham. The current shortlist includes former CFTC Division Director Josh Sterling, Securities and Exchange Commission Chief Counsel Mike Selig, and Treasury Secretary counselor Tyler Williams.
The development is crucial because Quintenz was previously viewed as the frontrunner to become CFTC Chair in February.
Bitcoin (BTC) Price Analysis
Bitcoin’s (BTC) recovery lost momentum during the ongoing session as it fell back into the red after reaching an intraday high of $113,999 on Wednesday. The flagship cryptocurrency has struggled to regain momentum this week as buyers remain cautious after Monday’s market crash. BTC fell to an intraday low of $111,502 on Tuesday but recovered on Wednesday, rising 1.19% and settling at $113,348. The current session sees the price down over 1%, trading around $112,079.
Analytics platform Glassnode believes that BTC has entered a “historically late phase” of its bull market cycle, with profit-taking metrics and capital flows mirroring previous market tops. According to Glassnode data, BTC’s current cycle is similar to the 2015–2018 and 2018–2022 runs, where the price reached an all-time high two to three months after the present relative stage. Glassnode also highlighted that BTC’s circulating supply has spent 273 days above the +1 standard deviation profit band. Long-term holders have also realized more profits than in all but one past cycle, indicating that sell-side pressure is mounting. Glassnode noted in its weekly report,
“These signals reinforce the view that the current cycle is firmly in its historically late phase.”
Additionally, profit-taking volumes have also softened. Meanwhile, CryptoQuant suggests there is renewed demand for BTC, with the youngest group of BTC holders flipping net positive. BTC supply held by this group surged by 73,702 BTC in September. Short-term BTC holders are also accumulating, and have added 159,098 BTC. However, Santiment cautioned against expectations of an immediate rebound, stating that retail eagerness to “buy the dip” has often led to further downside. Some analysts believe BTC could see another dip before a true recovery takes place. Crypto investor Ted Pillows noted,
$BTC usually bottoms in September. In just 2 days, $17,500,000,000 in Bitcoin options will expire with a max pain at $107,000. Historically, BTC moves towards max pain during such huge expirations. I think there's still a big leg down left before reversal.”
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. Selling pressure has returned during the ongoing session, with BTC down 1.42%, trading around $111,737.
Ethereum (ETH) Price Analysis
Ethereum (ETH) extended its decline for a fifth day, with the price down over 3% during the ongoing session. The world’s second-largest cryptocurrency has seen bearish sentiment dominate this week after Monday’s crash, which saw the price fall nearly 6% to $4,202. Sellers retained control on Tuesday as ETH fell almost 1% and settled at $4,166. The price registered a marginal decline on Wednesday, with selling pressure intensifying during the ongoing session.
Meanwhile, the amount of ETH held on centralized exchanges has dropped to its lowest level in 2016, thanks to a sharp jump in institutional accumulation. The altcoin’s supply on centralized exchanges has been steadily falling since 2020. However, the number has been halved over the past two years, as the rate of accumulation rose. The exodus accelerated in July and has dropped a further 20% since. According to Glassnode data, centralized exchanges hold 14.8 million ETH as of Thursday. CryptoQuant also reported a similar trend in its Ethereum exchange supply ratio. The metric is at its lowest level since 2016.
When exchange supplies drop, it indicates that investors are moving their assets into cold storage, staking, or DeFi. It also suggests that investors believe in the long-term potential of the asset. On the other hand, when exchange balances increase, it is a sign that investors are preparing to sell their assets. CryptoQuant author CryptoOnChain noted,
“Large-scale withdrawals often indicate a shift toward self-custody or DeFi deployments, reducing exchange liquidity and immediate selling pressure.”
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 Thursday after buyers lost momentum, dropping to $4,155. Selling pressure has intensified during the ongoing session, with the price down almost 3% at $4,034.
Solana (SOL) Price Analysis
Solana (SOL) is struggling to hold its position above $200 after dropping to $202 during the ongoing session. The altcoin has been unable to regain momentum after Monday’s crash, dropping over 3% on Tuesday and registering a marginal decline on Wednesday, settling at $211. The current session sees SOL down nearly 4%, trading around $202.
The altcoin has underperformed almost all major cryptocurrencies, with analysts citing deleveraging pressure, priced-in corporate purchases, and upcoming FTX distributions as the main drivers of SOL’s recent decline. Dean Chen, analyst at crypto exchange Bitunix, stated,
“According to CoinGlass data, over the past 24 hours, market-wide liquidations exceeded $290 million, with highly leveraged and less liquid assets seeing sharper drawdowns—Solana being a prime example.”
Solana derivatives contracts accounted for $31.6 million of forced liquidations over the past day, compared to $68.5 million in ETH and $52.5 million in BTC liquidations. Chen stated that the market had already priced in Solana treasury news from Forward Industries and DeFi Development Corp.
“Once the announcements became official, the market reacted with a classic ‘buy the rumor, sell the news’ dynamic, prompting speculative holders to exit and accelerating the correction.”
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.
Source: TradingView
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. 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. Selling pressure has intensified during the ongoing session, with the price down over 4% at $202.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) started the previous week in the red, dropping over 3% to a low of $0.259 before settling at $0.269. Selling pressure persisted on Tuesday as the price fell to a low of $0.257. However, it recovered from this level and settled at $0.269, ultimately registering a marginal increase. Bullish sentiment intensified on Wednesday as DOGE rose nearly 5% and settled at $0.283. Despite the positive sentiment, the price lost momentum on Thursday, dropping 1.48% to $0.278. Selling pressure intensified on Friday as DOGE fell 4.52% and settled at $0.266.
Source: TradingView
Price action was mixed over the weekend as DOGE rose marginally on Saturday. However, it lost momentum on Sunday, dropping over 2% to $0.261. Bearish sentiment intensified on Monday as the price fell nearly 8%, dropping to a low of $0.231, before settling at $0.241. Sellers retained control on Tuesday as DOGE fell 1.53% and settled at $0.237. The price faced volatility on Wednesday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price rose 1.64% to $0.241. DOGE is down 4% during the ongoing session, trading around $0.232.
Cosmos (ATOM) Price Analysis
Cosmos (ATOM) fell sharply on Monday (September 15), falling nearly 3% and settling at $4.51. The price recovered on Tuesday, rising 0.92% to $4.55. Buyers retained control on Wednesday as ATOM rose 1.49% and settled at $4.62. The price continued pushing higher on Thursday, rising 0.98% and settling at $4.66. Despite the positive sentiment, ATOM lost momentum on Friday, falling by more than 3% to $4.47.
Source: TradingView
Price action remained bearish over the weekend as ATOM fell 0.40% on Saturday and 0.95% on Sunday to settle at $4.41. Bearish sentiment intensified on Monday as the price fell nearly 6% and settled at $4.16. Sellers retained control on Tuesday as ATOM registered a marginal decline and settled at $4.14. Despite the selling pressure, the price recovered on Wednesday, rising 0.26% to $4.16. ATOM is down over 2% during the ongoing session, trading around $4.06.
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.
