The cryptocurrency market ended the week of 14–18 September with a moderate recovery following sharp fluctuations: Bitcoin returned to a level of around $78,000, Ethereum is holding above $2,500, although US spot ETFs recorded net outflows and the US Federal Reserve raised interest rates for the first time in more than three years.
According to CoinGecko data as at 18 September, Bitcoin is trading at approximately $78,100, Ethereum at $2,510, BNB at around $750, and XRP at around $1.33. The total market capitalisation of the cryptocurrency market stands at around $2.77 trillion, with daily trading volume at around $93 billion. Over the past seven days, Bitcoin has risen by approximately 1 per cent, Ethereum by 1.2 per cent, BNB by more than 5 per cent, and XRP by approximately 1.5 per cent.
The start of the week was considerably more volatile. On 14 September, Bitcoin was trading at around $78,200, but by 15 September it had fallen to approximately $75,600. The following day, prices remained close to $76,100, after which the market began to recover by Friday.
One of the main factors putting pressure on the market was the decision by the US Federal Reserve. On 16 September, the Fed unanimously raised the target range for the federal funds rate by 25 basis points to 3.75–4 per cent. The US central bank attributed the decision to persistently high inflation. This marked the Fed’s first rate rise since 2023.
An additional source of uncertainty for the crypto industry was the vote in the US Senate on Bill H. R. 3633, known as the CLARITY Act, which is intended to establish a comprehensive regulatory framework for the digital assets market and delineate the respective powers of the SEC and the CFTC. » » On 15 September, a procedural vote to proceed with consideration of the bill ended with 49 votes in favour and 50 against, whilst three-fifths of the Senate was required for it to pass.
Against this backdrop, institutional inflows into cryptocurrency ETFs remained negative for most of the week. According to Farside Investors, over the four trading sessions from 14 to 17 September, US spot Bitcoin ETFs recorded a combined net outflow of approximately $427 million. Following an inflow of $159.9 million on Monday, investors withdrew $450.4 million on Tuesday and $295.9 million on Wednesday. On Thursday, the trend reversed, with a net inflow of $159.5 million. Data for Friday had not yet been finalised at the time of writing.
The performance of Ethereum ETFs was even weaker. Over the same period, net outflows from US spot Ethereum funds totalled approximately $284 million. On Monday, the funds attracted $121.1 million, but over the next three trading sessions they lost $142 million, $224.1 million and $39.3 million respectively.
Meanwhile, at the end of the week, the crypto industry received a positive regulatory signal from the US Securities and Exchange Commission. On 17 September, the SEC introduced the so-called Innovation Exemption – a temporary five-year regime which, under certain conditions, allows the trading of tokenised shares of US companies via blockchain infrastructure and permissioned AMM pools. The SEC emphasised that tokenised shares must confer the same rights on their holders as the corresponding traditional securities.
The news provided a boost to digital asset-related companies and was one of the factors behind the recovery in market sentiment towards the end of the week. In Friday’s trading, Coinbase shares rose by more than 3 per cent, Strategy by around 4 per cent and Robinhood by 3.5 per cent, whilst Bitcoin climbed back towards the $78,000 mark.
That said, the global macroeconomic backdrop remains challenging for risk assets. The yield on 10-year US Treasury bonds exceeded 5% this week, whilst the price of Brent crude remained above $100 per barrel against a backdrop of geopolitical tensions and risks to energy supplies. High oil prices are exacerbating inflationary risks and may support a tighter monetary policy from central banks, which traditionally dampens demand for crypto assets.
Accordingly, Fixygen assesses that the key outcome of the week was the resilience of the major cryptocurrencies in the face of a simultaneous deterioration in the monetary and regulatory environment. Bitcoin ended the previous week at around $77,100. As of 18 September, it stands above $78,000, whilst the total market capitalisation of the crypto market has risen from approximately $2.73 trillion to $2.77 trillion. At the same time, negative outflows from ETFs suggest that the recovery has not yet been accompanied by a sustained return of significant institutional capital. Key factors for the market next week will continue to be expectations regarding the Fed’s next moves, the performance of US bonds and oil, inflows into cryptocurrency ETFs, and the future of legislation governing the structure of the US cryptocurrency market.