Daily News 19

Author: Evan Mercer

  • AerodromeFi Envisions an On-Chain Future for Stocks

    AerodromeFi Envisions an On-Chain Future for Stocks

    AerodromeFi has drawn attention with a recent social media post highlighting a vision in which stocks move onchain, potentially reshaping how financial markets operate. The idea points to a future of more decentralized trading and reflects growing investor interest in blockchain-based solutions for traditional finance.

    AerodomeFi Highlights the Potential of Onchain Stocks

    The crypto market is showing mixed signals, with momentum varying across major digital assets. Against this backdrop, AerodromeFi’s focus on onchain stock trading has sparked discussion within the crypto community.

    The concept aligns with broader interest in decentralized finance (DeFi), which could challenge conventional stock-market infrastructure by using blockchain technology to support greater transparency and efficiency. AerodromeFi’s post has resonated with users exploring how onchain assets could influence the future of finance.

    Market Activity and Community Engagement

    Trading volume was not reported, suggesting limited visibility into broader market activity. However, the post generated 63 likes and seven retweets, indicating meaningful community engagement with the idea of blockchain-based stock trading.

    Current market conditions remain mixed, but they continue to provide a backdrop for discussions about the development and adoption of onchain assets.

    AerodomeFi’s Role in Onchain Trading

    AerodromeFi operates as a decentralized exchange (DEX) focused on blockchain-based trading. Its position in the sector could become increasingly relevant as more financial participants evaluate onchain systems for their potential to improve transparency, efficiency and market access.

    What Traders Should Watch

    Market participants will likely monitor developments involving onchain assets, blockchain infrastructure and financial regulation. Regulatory changes and technological advances could affect the viability and appeal of onchain stocks.

    Traders may also watch how traditional financial institutions respond to the shift toward blockchain-based markets. Their adoption strategies and broader market actions could play an important role in determining the future direction of onchain trading.

    This article is for informational purposes only and does not constitute financial advice.

    Source: cryptonews.net

  • Fenics Market Data Reinforces Pyth Network’s Role in OTC Trading

    Fenics Market Data Reinforces Pyth Network’s Role in OTC Trading

    Pyth Network has integrated Fenics market data to improve access to institutional over-the-counter (OTC) pricing. The initiative is designed to support better price discovery for fixed-income trading, a market that often operates outside traditional exchanges.

    The partnership comes as institutional demand grows for reliable market data in OTC trading environments. By making Fenics pricing data more accessible, Pyth Network could help improve transparency and efficiency in on-chain trading while giving institutions better tools for pricing and execution.

    Pyth Network and Fenics Integration: Key Takeaways

    • Pyth Network is integrating Fenics market data to expand access to OTC pricing.
    • The initiative focuses on improving data availability for fixed-income trading.
    • Institutional traders could benefit from more reliable price discovery for OTC transactions.
    • The move reinforces Pyth Network’s focus on bringing institutional-grade market data to on-chain markets.
    • Improved access to pricing data could encourage greater institutional participation in crypto markets.

    What the Data Shows

    Pyth Network’s trading volume currently stands at $0, indicating limited market activity as traders assess the latest development. Although the integration has not produced immediate price action, it reflects a broader trend of institutions seeking innovative ways to access essential market information.

    Pyth Network provides real-time data for on-chain trading, with the goal of improving pricing accuracy and market efficiency. The Fenics integration is particularly significant for institutional participants, who often depend on reliable pricing information when executing OTC transactions.

    As the crypto market develops, the partnership could influence future trading strategies and participation in the OTC space. It also aligns with broader efforts to make financial market data more accessible across crypto markets.

    What Comes Next for Pyth Network

    Traders will be watching how the Fenics integration affects market behavior, pricing strategies and institutional participation in the coming weeks. Expectations of greater transparency could attract additional institutional interest, while developments in the regulatory environment may also shape how the partnership affects on-chain and OTC trading.

    This article does not constitute financial advice.

    Source: cryptonews.net

  • Thailand SEC Seeks New Rules for Retail Crypto Derivatives

    Thailand SEC Seeks New Rules for Retail Crypto Derivatives

    Thailand’s Securities and Exchange Commission (SEC) has proposed rules that would allow licensed intermediaries to facilitate retail investment in qualifying cryptocurrency derivatives traded on overseas exchanges.

    Announced on Aug. 31, the proposal would apply to retail, high-net-worth and ultra-high-net-worth investors. It would not provide unrestricted access to every crypto futures or options product listed outside Thailand.

    The consultation is open until Sept. 30. The SEC has not yet said when final rules could take effect or identified the foreign exchanges and contracts that would qualify.

    Retail crypto derivatives would face product and exchange limits

    Under the proposed framework, an overseas crypto derivative offered to noninstitutional clients would need to share key characteristics with digital asset derivatives permitted in Thailand. The SEC identified the underlying asset, maturity, leverage, delivery method and settlement structure as relevant comparison points.

    The requirement is intended to prevent intermediaries from directing retail investors toward contracts with unfamiliar structures or substantially higher leverage. The SEC did not publish a list of eligible cryptocurrencies, exchanges or maximum leverage levels in its English-language announcement.

    Those details may depend on domestic contract specifications being developed with the Thailand Futures Exchange (TFEX).

    The overseas exchange would also need to use a central counterparty, or CCP, to clear trades. A CCP becomes the buyer to each seller and the seller to each buyer, reducing direct counterparty exposure between market participants.

    In addition, the exchange would have to be supervised by a regulator that is a Signatory A to the International Organization of Securities Commissions’ Multilateral Memorandum of Understanding, or belong to the World Federation of Exchanges.

    These conditions establish a regulatory test rather than a blanket list of approved countries. An offshore platform would not qualify solely because it offers Bitcoin or Ether futures to customers in another jurisdiction.

    Institutional investors could access broader crypto products

    Crypto derivatives that do not meet the proposed retail conditions could be offered only to institutional investors. The SEC said these investors are better equipped to assess complex products and manage losses linked to leverage, volatility and settlement risks.

    Qualifying the exchange alone would therefore not be sufficient. The specific contract would also need to match the relevant Thai product characteristics before an intermediary could offer it to retail or wealthy individual clients.

    Existing Thai rules already allow intermediaries to facilitate overseas derivatives investments for retail and high-net-worth clients when the foreign instruments resemble products that can be traded in Thailand. The new proposal would establish tailored conditions for crypto derivatives because overseas contracts can vary widely in leverage, maturity and settlement.

    Perpetual futures may receive particular scrutiny because they have no fixed expiry date and use recurring funding payments. The SEC did not state whether such products would satisfy the similarity test. Their eligibility will depend on the final rules and domestic contract specifications.

    The proposal applies to regulated intermediaries facilitating access. It does not legalize direct use of every offshore crypto exchange by Thai residents or override restrictions affecting unlicensed foreign platforms.

    Thailand is still developing domestic crypto contracts

    Thailand expanded its derivatives framework earlier in 2026 by adding cryptocurrencies and digital tokens as eligible underlying assets under the Derivatives Act.

    As crypto.news previously reported, Thailand formally recognized cryptocurrencies as permissible underlyings for regulated futures and options. The SEC Board’s related notification was dated March 5.

    The regulator is now discussing contract specifications with TFEX. Those discussions are expected to cover underlying assets, contract sizes, margin requirements, leverage and settlement methods for domestic products.

    TFEX had not listed a cryptocurrency futures or options contract as of Sept. 1. Its public product directory included equity index, single-stock, precious metal, currency, interest-rate and agricultural derivatives, but no digital asset category.

    The lack of a domestic crypto derivatives contract leaves an open question for comparing overseas products. The SEC may need to complete or substantially define the TFEX framework before intermediaries can determine which foreign contracts meet the similarity requirement.

    Thailand has separately considered allowing crypto businesses to obtain derivatives licenses without establishing new corporate entities. The planned change would allow qualified firms to expand within one regulated structure while maintaining controls for conflicts of interest and customer protection. The earlier licensing proposal aimed to reduce duplicate corporate requirements.

    Sept. 30 consultation deadline will shape final rules

    Investors, intermediaries, banks, digital asset businesses and other stakeholders can submit comments through the SEC’s consultation page, Thailand’s Legal Hub or the email addresses provided by the regulator.

    The consultation asks whether noninstitutional investors should receive access when every prescribed condition is met. It separately asks whether institutional investors should be allowed to access products that fall outside those conditions.

    After Sept. 30, the SEC can revise the proposal before approving final amendments. No statutory deadline requires the regulator to complete the process immediately after the consultation closes.

    Further information will also be needed from TFEX. Its contract specifications would help determine which overseas instruments have sufficiently similar leverage, maturities and settlement arrangements.

    The proposal did not produce any verified market movement directly attributable to the announcement. It also did not approve a particular cryptocurrency, exchange, broker or derivatives contract.

    Thailand is also developing locally regulated crypto exchange-traded funds. In related coverage, proposed spot Bitcoin and Ether ETF rules set an 80% minimum digital asset exposure. Together, the initiatives show the regulator expanding supervised investment access while retaining product-level restrictions.

  • DeFi Development Prices $19.8 Million CHAD Stock Offering

    DeFi Development Prices $19.8 Million CHAD Stock Offering

    DeFi Development Corp. has priced its Variable Rate Series C Perpetual Preferred Stock offering at $9 per share, according to an updated prospectus filed with the U.S. Securities and Exchange Commission.

    The Solana treasury company plans to sell 2.2 million shares of the preferred security, known as CHAD Stock. The offering is expected to generate $19.8 million in gross proceeds before underwriting commissions and other expenses.

    The final terms update DeFi Development’s Aug. 31 announcement, which described a proposed offering of up to $20 million without specifying the share count or offering price.

    R.F. Lafferty & Co. is the sole book-running manager. The underwriter also received a 30-day option to purchase an additional 330,000 shares at the public offering price, less commissions. If fully exercised, the option would increase the offering to 2.53 million shares and raise up to $22.77 million in gross proceeds.

    CHAD Stock carries an initial 13% dividend rate

    Each CHAD share has a $10 stated amount and an initial liquidation preference of $10, although investors in the offering will pay $9 per share.

    The initial annual dividend rate is 13%, calculated on the $10 stated amount. If that rate remains unchanged, each share would generate $1.30 in annual dividends.

    At the $9 offering price, the initial dividend rate represents an effective annual yield of approximately 14.44%. That figure is based on the starting dividend and does not guarantee that investors will receive the same yield over time.

    The dividend rate is variable. DeFi Development’s board may review and adjust it at least monthly based on interest rates, CHAD’s trading price, comparable yields, liquidity requirements and other factors.

    The company may lower the rate, although the prospectus limits any monthly reduction to 50 basis points from the previous month. The filing also warns that management could eventually set the rate below those of comparable securities.

    The first dividend is scheduled for Oct. 1 and will cover the period from issuance through Sept. 30. After that payment, dividends will be payable on each business day, but only “when, as and if declared” by the board and when legally available funds exist.

    Dividend reserve covers the first year at 13%

    When the offering closes, DeFi Development intends to deposit $1.30 for each issued share into a separate dividend account. Based on 2.2 million shares, the initial reserve would total approximately $2.86 million.

    The reserve represents 12 months of payments calculated at the initial 13% rate. DeFi Development said it would fund the account with existing cash, financial instruments or digital assets rather than relying solely on the offering proceeds.

    However, the prospectus states that the company is not contractually required to increase the reserve if the dividend rate rises above 13% or if additional CHAD shares are issued.

    Assets in the account could also remain available to creditors during insolvency or bankruptcy. The reserve provides a designated funding source but does not constitute an independent guarantee.

    CHAD is a perpetual security with no maturity date. Holders generally cannot demand repayment except after certain qualifying corporate events. The shares have limited voting rights and rank below the company’s current and future debt.

    DeFi Development may redeem CHAD for $11 per share, plus accumulated unpaid dividends, after the security is listed on Nasdaq. Separate redemption provisions apply following a tax event or if the number of outstanding shares falls below 25% of all CHAD shares historically issued.

    DeFi Development may use proceeds to acquire SOL

    The company plans to use the net proceeds for general corporate purposes. Potential uses include working capital, Solana purchases, other digital asset investments, acquisitions and strategic initiatives.

    No fixed portion of the proceeds has been allocated to SOL. Investors therefore should not treat the full $19.8 million offering as a confirmed Solana purchase.

    DeFi Development recently acquired approximately 19,000 SOL at an average price of $98.14. As previously reported, the purchase expanded its treasury to roughly 2.33 million SOL and SOL-equivalent assets.

    The company has not provided a current breakdown separating native SOL from liquid staking tokens and other SOL-denominated positions. It stakes assets through its own validators and external validators to earn network rewards and fees.

    The SEC filing warns that any proceeds invested in SOL would remain exposed to price volatility. It also states that management has broad discretion and may allocate the funds differently from its current plans.

    CHAD seeks Nasdaq listing as DFDV gains

    DeFi Development has applied to list the preferred stock on the Nasdaq Capital Market under the ticker CHAD. Trading is expected to begin after the initial issuance, although Nasdaq approval remains pending.

    The company also intends to establish an at-the-market program for additional CHAD sales after the listing. The terms have not been finalized, and future issuance could dilute existing holders’ rights or put pressure on the security’s market price.

    DFDV common stock closed Aug. 31 at approximately $5.38, up 7.8% during the session. The CHAD announcement was published at 5:45 p.m. Eastern Time, after regular trading ended, so the intraday gain cannot be attributed to the offering.

    The stock opened near $4.90 and traded between approximately $4.84 and $5.52. A verified regular-session reaction to the final CHAD terms will not be available until U.S. markets reopen.

    The next confirmed events are the offering’s closing, Nasdaq’s listing decision and the first dividend payment on Oct. 1. Any subsequent SOL acquisition will require a separate company disclosure before it can be treated as completed.

  • a16z Adds $1.75 Billion to Growth Fund Days After Closing $1.1 Billion AI Hardware Bet

    a16z Adds $1.75 Billion to Growth Fund Days After Closing $1.1 Billion AI Hardware Bet

    Andreessen Horowitz (a16z) has raised an additional $1.75 billion through its fifth growth fund, just days after closing its $1.1 billion AI hardware fund. The back-to-back fundraising rounds highlight the rapid flow of capital across the artificial intelligence industry.

    The raises coincide with Goldman Sachs Research’s projection that global AI investment will reach $1 trillion in 2026, underscoring the scale of expected spending on AI software, infrastructure and hardware.

    a16z raises $1.75 billion for growth-stage companies

    A growth fund is a venture fund designed for later-stage startups that need capital to expand their products, teams, sales operations and geographic reach.

    a16z’s growth fund originally launched in January with $6.75 billion. According to TechCrunch, the latest $1.75 billion is an extension of that fund rather than the creation of a new investment vehicle.

    David George, head of a16z Growth, said in the company announcement that the team has supported more than 100 companies during their growth-stage journeys over the past seven-plus years. The portfolio includes Databricks and SpaceX.

    The growth strategy focuses on enterprise and consumer AI, defense and industrial technology, robotics, healthcare and infrastructure.

    a16z expands its AI hardware investment

    The $1.1 billion Machine Age Fund gives a16z greater exposure to the physical infrastructure powering artificial intelligence. The fund targets the physical AI stack, including semiconductors, memory, networking, storage, data centers and robotics.

    a16z says AI is driving major changes in hardware requirements. From the first H100 systems to Rubin, compute density in each rack has increased 28-fold. Rack power consumption has risen from 5–10 kilowatts to 100–250 kilowatts and is expected to reach 1 megawatt within three years, while hardware supply has traditionally grown by about 20% to 30% annually.

    Both funds are part of a broader expansion by a16z. The firm announced more than $15 billion in new funds in January, and TechCrunch reported that it manages approximately $90 billion.

    AI infrastructure attracts record investment

    Independent investment data points in the same direction. The OECD found that AI infrastructure and hosting companies attracted $109.3 billion in venture capital in 2025, up from $47.4 billion in 2024. The sector accounted for more than 42% of all AI venture capital investment that year.

    Goldman Sachs Research estimates that worldwide AI-related investment will total approximately $1 trillion in 2026, including $581 billion in the United States. Cumulative global AI investment since 2022 is expected to reach roughly $1.8 trillion by the end of 2026.

    Gartner forecasts semiconductor revenue of approximately $1.6 trillion this year, a 92% increase, with memory revenue alone reaching about $837 billion. The research firm expects AI data centers’ share of chip revenue to rise from 36.5% in 2026 to more than 53% by 2030.

    Stanford’s 2026 AI Index reported that global private AI investment reached $344.7 billion in 2025, up 127.5%. US private AI investment reached $285.9 billion, more than 23 times China’s $12.4 billion.

    The OECD uses a narrower venture-capital measure. It found that AI companies attracted $258.7 billion, or 61% of the $427.1 billion invested across the global venture-capital market in 2025. That share rose from 30% in 2022, showing how sharply venture funding has shifted toward AI.

    Large AI deals accelerate private valuations

    The OECD also found that deals worth more than $100 million accounted for approximately 73% of AI venture-capital investment by value in 2025. Deals exceeding $1 billion represented almost half of the total.

    This concentration helps explain why a relatively small group of AI companies is reaching extremely high private valuations so quickly. According to Forge Global, Anthropic, OpenAI and xAI reached $100 billion valuations in roughly five years, compared with an average of about 16 years for older companies such as SpaceX, Stripe and Waymo.

    Investor demand is increasingly extending into AI hardware. British chip startup Fractile recently entered talks at a $6.5 billion pre-money valuation after reaching a preliminary agreement to supply approximately $250 million worth of chips to Anthropic, as reported by Cryptopolitan.

    Fractile’s chips are not expected to arrive until 2027, making the proposed valuation an example of investors pricing in future demand for AI infrastructure well before the hardware reaches the market.

  • SEC Presses Investment Firms to Prove They Own the Hot Startup Shares They Sell

    SEC Presses Investment Firms to Prove They Own the Hot Startup Shares They Sell

    According to a Wall Street Journal (WSJ) report published Monday, the U.S. Securities and Exchange Commission (SEC) is asking investment companies to prove that their products actually hold the private-company shares they claim to offer.

    The inquiry comes as investors seek exposure to high-profile artificial intelligence companies such as OpenAI and Anthropic through private-market funds and, increasingly, blockchain-based investment products. It raises a fundamental question: does the promised investment really exist?

    Reuters, citing the WSJ report, said the SEC has asked registered investment advisers to demonstrate that the special purpose vehicles (SPVs) they oversee actually own, or have exposure to, the shares they promote. Reuters said it was unable to independently verify the report. The reported SEC examination does not target any specific firm.

    Why SPV scrutiny matters for AI investments

    SPVs pool money from investors to acquire stakes in private companies, giving outside investors access to businesses whose shares are not publicly traded. In recent years, they have become a popular way to invest in the artificial intelligence boom.

    According to a Cryptopolitan report published August 27 and based on DeFiLlama’s pre-IPO valuations tab, Anthropic and OpenAI ranked first and second among 182 companies, with estimated valuations of $1.38 trillion and $900.29 billion, respectively.

    Source: Cryptopolitan, citing DeFiLlama’s pre-IPO tracker snapshot reported August 27, 2026. These are estimated private-market valuations, not official company funding valuations.

    The sums involved are substantial. Stanford’s AI Index for 2026 reported that global private investment in artificial intelligence increased 127.5% in 2025 to $344.7 billion, including $170.9 billion invested in generative AI. As capital continues to flow into private AI companies, proving exactly what an investment buys is becoming increasingly important.

    OpenAI and Anthropic warn about unauthorized equity exposure

    Companies are already taking steps to police their own equity. OpenAI has warned investors about unauthorized opportunities to gain exposure to its shares. In its equity-transfer notice, the company says it is “aware of firms that market unauthorized opportunities to gain exposure to OpenAI,” including through direct equity sales, SPV interests, tokenized interests and forward contracts.

    OpenAI also warns that unauthorized transactions may leave investors with an interest that:

    “will not be recognized and carry no economic value to you.”— OpenAI, Unauthorized OpenAI Equity Transactions

    Anthropic has issued a similar warning, stating that transfers involving its stock require board approval and that it does not allow SPVs to acquire Anthropic stock. In both cases, an SPV’s claim that it has access to a company’s shares does not necessarily mean that the underlying exposure is valid.

    SEC case highlights risks in pre-IPO investments

    The SEC has already brought a case illustrating how investors can be misled. On August 10, 2026, the agency charged Adit Ventures Management, CEO Eric Munson and three affiliated general partners with allegedly defrauding investors in connection with pre-IPO holdings, including stakes in SpaceX and Klarna.

    The SEC alleged that Munson falsely told an investor that a fund owned shares in a private company when it did not. The complaint also alleges that the defendants resold pre-IPO shares to client funds at inflated prices, misrepresented costs, collected millions of dollars in unauthorized fees and pledged client assets to support a $10 million credit line.

    “That misconduct has no place in investment advisory relationships where clients count on investment advisers being their fiduciaries.” — Corey A. Schuster, Chief of the SEC Enforcement Division’s Asset Management Unit

    Without admitting the allegations, the defendants consented to judgments subject to court approval. The proposed resolutions include disgorgement, civil penalties and, for Munson, an associational bar with the right to seek reentry after three years.

    Tokenized private-company investments add further risk

    The issue also extends to cryptocurrency markets as exposure to private companies increasingly moves onchain. Cryptopolitan reported in April that OpenAI’s implied valuation exceeded $1 trillion through onchain pre-IPO instruments backed 1:1 by SPV exposure on Jupiter.

    Tokenization does not resolve the underlying ownership question. Instead, it can distribute the same claim across a larger number of investors.

    In a January 28, 2026 statement concerning tokenized securities, SEC divisions said that moving a security onchain:

    “does not affect application of the federal securities laws.”— SEC Divisions of Corporation Finance, Investment Management, and Trading and Markets

    The next key questions are whether the reported examinations lead to enforcement actions and whether products linked to major AI companies become specific targets. For investors, the issue is straightforward: can the firm selling the exposure prove that it owns what it claims to own?

  • BlackRock’s BUIDL Outpaces Circle’s USYC as Tokenized Treasury Race Heats Up

    BlackRock’s BUIDL Outpaces Circle’s USYC as Tokenized Treasury Race Heats Up

    BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has narrowly overtaken Circle’s USYC to become the second-largest tokenized U.S. Treasury fund, highlighting the accelerating competition in the tokenized real-world asset (RWA) market.

    BUIDL and USYC compete for market share

    According to Token Terminal data, the total tokenized U.S. Treasury market is worth approximately $15.1 billion. BUIDL accounts for about $2.8 billion, giving it an estimated 18.5% market share. Nearly one-fifth of all tokenized Treasury assets are therefore held through BlackRock’s fund.

    USYC also recorded rapid growth in 2025, rising from roughly $600 million to nearly $3 billion. By late August 2026, the fund had reached approximately $2.9 billion, slightly above BUIDL’s estimated $2.7 billion at that point.

    In a separate market snapshot, Sky’s uSDS ranked first with a value of $4.4 billion, followed by BUIDL at $2.28 billion. Tether’s XAUT ranked third at $2.8 billion, while Circle’s USYC was listed fourth at $2.28 billion.

    However, XAUT is classified as a tokenized commodity rather than a tokenized fund. Excluding uSDS and XAUT, BUIDL and USYC remain closely matched, meaning new institutional inflows or withdrawals could quickly change their rankings.

    BlackRock’s position may also shift rapidly because the asset manager frequently records significant inflows and outflows across its Bitcoin [BTC] and Ethereum [$ETH] exchange-traded funds (ETFs), affecting their cumulative flow totals.

    BlackRock expands its tokenized fund offering

    The competition comes as BlackRock recently launched BSTBL on Ethereum and BRSRV on Solana [$SOL]. The tokenized money market funds are designed to serve as reserve assets for stablecoins.

    The development is significant because stablecoins now represent approximately $305 billion and have become a major source of on-chain liquidity. By offering similar institutional products on both Ethereum and Solana, BlackRock is providing capital access to both ecosystems while reinforcing the competition between $ETH and $SOL for liquidity.

    By late August, USYC had reached approximately $2.9 billion, slightly above BUIDL’s estimated $2.7 billion. BUIDL has since narrowly overtaken USYC, underscoring the growing competition among tokenized Treasury funds and the broader expansion of institutional RWAs.

  • Why Crypto Faces Its First September Test as U.S. Labor Data Looms

    Why Crypto Faces Its First September Test as U.S. Labor Data Looms

    September 15 is shaping up to be a potentially pivotal day for financial markets, with monetary policy, economic data and crypto regulation all converging.

    The Federal Open Market Committee (FOMC) is scheduled to meet on that date, while markets remain divided over the outlook for interest rates. With 12 voting members on the board, current pricing points to a 7-5 decision favoring a dovish rate policy. However, the meeting is still two weeks away, and this week’s key economic data could significantly influence the final vote.

    Jobs data could drive crypto market volatility

    The final month of the third quarter is expected to bring important labor-market data, placing employment conditions at the center of investor attention. Signs of a cooling labor market could reduce the likelihood of further rate hikes, while stronger-than-expected figures could weaken hopes for rate cuts. Either outcome could create volatility across the cryptocurrency market.

    Recent data points to a scenario consistent with the setup outlined above. According to FedWatch data, markets are already pricing in nearly a 60% chance of a rate hike, representing an increase of almost 46% in rate-hike expectations this week.

    The scheduled vote on the CLARITY Act is also set for September 15, adding another potential catalyst to the day of the FOMC statement. Given the significance of interest-rate policy and crypto regulation, the date could become a critical turning point for Bitcoin and digital assets.

    Macro headwinds test the crypto rally

    Despite a strong close to August, market sentiment appears to be turning bearish for September.

    Data from CryptoQuant shows that Bitcoin’s Coinbase Premium Index has turned negative again, while exchange-traded fund inflows also became negative in the latest recorded session. The shift has fueled bearish concerns that Bitcoin’s current technical structure could develop into a bull trap.

    At the same time, the timing of the macroeconomic releases coincides with the XAU/$BTC ratio approaching a critical weekly support level. The ratio bounced from this level in mid-May as capital moved out of Bitcoin and into gold.

    If the weekly support holds, another rotation into gold could place additional selling pressure on the broader cryptocurrency market.

    Under this scenario, Bitcoin’s recently regained $75k level could face renewed pressure as expectations of higher interest rates attract capital toward traditional safe-haven assets. The CLARITY Act vote adds another layer of uncertainty to an already event-heavy day.

    With monetary policy, capital rotation and crypto regulation converging on September 15, the date could set the tone for Bitcoin [$BTC] and the wider crypto market through the final stretch of the third quarter.

    Key factors to watch

    • Rate-hike expectations and labor-market data could increase crypto volatility.
    • Negative ETF flows, strength in gold against Bitcoin and the CLARITY Act vote could add further pressure to Bitcoin.
  • Polygon Plunges 9% and Loses Key Support: Can POL Hold $0.09?

    Polygon Plunges 9% and Loses Key Support: Can POL Hold $0.09?

    Polygon Price Falls 8.9% as Selling Pressure Pushes POL Below $0.10

    Broader market weakness has hit Polygon (POL) particularly hard. The altcoin broke below the $0.10 support level and fell to a low of $0.093, while the final market summary reported a low of $0.092.

    At the time of writing, POL was trading near $0.094, down 8.9% over 24 hours. Despite the price decline, trading volume increased 54.8% to $87.6 million. Rising volume during a pullback often indicates increased selling activity as investors reduce their exposure.

    Polygon Faces Intense Selling Pressure

    As POL continued to decline, investors across the market appeared to be exiting their positions. On the spot market, Spot netflow turned positive after an initial decline.

    Spot netflow stood at approximately $849,000 at press time. Positive netflow indicates that more funds entered exchanges, which can suggest increased potential selling activity.

    When holders move funds to exchanges and cash out during a downtrend, it often reflects fear and declining confidence. Increased profit realization during an extended period of weakness can also precede further losses.

    Polygon Derivatives Data Turns More Bearish

    Activity in the derivatives market was even more negative. According to Coinalyze data, Polygon perpetual contracts recorded $46.79 million in sell volume, compared with $43.2 million in buy volume.

    At the same time, delta moved deeper into negative territory at -$9.8 million, while net buying also remained negative at -$98 million. Persistent negative delta and net buying suggest that many traders closed their perpetual positions.

    The futures market showed a similar pattern. Polygon recorded $23.6 million in futures outflows against $22.1 million in futures inflows.

    Netflow fell to -$1.55 million, extending a trend that has lasted for the past five days. The period of elevated outflows has coincided with Polygon’s price decline.

    What Comes Next for POL?

    Intense selling pressure has significantly strengthened Polygon’s downside momentum. The altcoin’s MACD showed bearish pressure, falling to 0.007 and confirming that bullish momentum is weakening.

    The positive ADX directional indicator, or DI+, also continued to decline, reaching 35. A falling DI+ alongside a rising ADX and increasing D- generally indicates weakening upside momentum and strengthening downside pressure.

    With both indicators weakening, the technical setup points to a higher likelihood that the prevailing downtrend will continue. If sellers maintain control, POL could fall below $0.09, with $0.082 emerging as the next support level.

    To invalidate the bearish outlook, POL would need to secure a daily close above $0.10 and reclaim the $0.12 resistance level.

  • BlackRock Drives $217M Bitcoin ETF Rebound as Altcoin Funds Extend Winning Streaks

    BlackRock Drives $217M Bitcoin ETF Rebound as Altcoin Funds Extend Winning Streaks

    US-listed spot Bitcoin exchange-traded funds (ETFs) returned to net inflows on Monday, led by BlackRock, while spot Ether, $XRP and Solana ETFs extended their positive streaks.

    Bitcoin ETFs recorded $216.7 million in net inflows, reversing Friday’s $201.8 million in outflows, according to SoSoValue. Friday’s withdrawals ended a nine-session inflow run that brought more than $3 billion into the funds.

    Bitcoin (BTC) was trading near $78,700 at the time of writing, up approximately 1.5% over the previous 24 hours, according to CoinGecko.

    BlackRock leads US spot Bitcoin ETF inflows

    BlackRock’s iShares Bitcoin Trust ETF (IBIT) accounted for most of Monday’s rebound, attracting $205.9 million in net inflows. The figure represented approximately 95% of the total daily inflows across US spot Bitcoin ETFs, according to Farside Investors.

    Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded $6.9 million in inflows, while the Bitwise Bitcoin ETF (BITB) added $4.3 million. Morgan Stanley’s Bitcoin Trust attracted $3.6 million, and Grayscale’s Bitcoin Mini Trust recorded $9.4 million in inflows.

    VanEck’s Bitcoin ETF (HODL) was the only fund to post net outflows, recording $13.4 million in withdrawals. The remaining funds reported no flows.

    US spot Bitcoin ETF flows. Source: SoSoValue

    US spot Bitcoin ETF flows per fund. Source: Farside Investors

    Ether, $XRP and Solana ETFs extend inflow streaks

    Spot Ether ETFs attracted $87.7 million on Monday, extending their inflow streak to 11 consecutive trading sessions.

    BlackRock’s iShares Ethereum Trust ETF (ETHA) led the category with $59.9 million in inflows, followed by Grayscale’s Ethereum Mini Trust with $13.5 million and Fidelity’s Ethereum Fund with $9.3 million, according to Farside Investors.

    $XRP ETFs recorded $5.64 million in net inflows, marking their 10th consecutive positive session, according to SoSoValue. The funds have attracted capital during every US trading session since Aug. 18.

    Solana ETFs also posted a 10th straight session of inflows. However, daily inflows fell to $925,010 from $18.1 million on Friday, making Monday’s total the weakest of the current run.