The cryptocurrency markets experienced a turbulent week, with Bitcoin (BTC) briefly rallying to $67,000 before a sharp correction pushed it back below $64,000. The decline came as rising U.S. bond yields and increased expectations of further Federal Reserve rate hikes pressured risk assets, triggering a broad sell-off.
Earlier in the week, Bitcoin surged to $67,000 on some exchanges, its highest level since mid-June, fueled by renewed ETF net inflows and accumulation by large investors. However, the rally proved unsustainable. BTC slipped to $66,000 on Wednesday, $65,000 on Thursday, and plunged to $64,000 today. Despite the $3,000 drop from the local top, Bitcoin remains roughly 2% up on the week. Ethereum (ETH) challenged $1,950 before pulling back, while Monero (XMR) surged 9% to over $350. Uniswap (UNI) and Hedera (HBAR) also posted gains, but Hyperliquid (HYPE), Zcash (ZEC), and Dogecoin (DOGE) ended the week in the red. Bitcoin’s dominance fell from over 57% to below 56%.
Amid the price action, a significant regulatory development emerged. The Fraternal Order of Police, representing over 382,000 law enforcement members, endorsed the latest version of the Digital Asset Market Clarity Act (H.R. 3633). The group’s National President confirmed that revised language in Section 10604 addresses previous law enforcement concerns, preserving the ability to investigate digital asset crimes while updating treatment under Bank Secrecy Act authorities. The bill also includes ethics restrictions limiting federal officials from using or issuing digital assets. However, Senate leadership indicated the legislation may miss the pre-summer recess window due to timing issues.
Elsewhere, veteran derivatives exchange BitMEX announced it will shut down on September 23, 2026, after a strategic review by its parent company. Decentralized exchange aggregator Odos also said it would cease operations next week. The SEC settled a lawsuit with Coinbase over lost texts during former Chair Gensler’s tenure, agreeing to pay $150,000 in attorney fees and review internal recordkeeping processes without admitting wrongdoing.
In a 24-hour span dubbed “Hackers’ Day,” three protocols were drained of over $35 million, with the largest exploit hitting Arbitrum-based AFX Trade for $24 million in USDC. The European Union approved its 21st sanctions package against Russia, targeting 11 crypto operators including HTX (formerly Huobi) and 94 financial institutions. Meanwhile, Binance Research reported that Gen Z users dominate its stablecoin-based stock trading products, generating $80 billion in year-to-date TradFi volume.
