Crypto Weekly Digest | Market Dips Amid Scrutiny: Are XRP & Aster the Next Catalysts?

Crypto-Moo joined discussion · Sep 29 15:20

Crypto Weekly Digest | Market Dips Amid Scrutiny: Are XRP & Aster the Next Catalysts?

Last week, the crypto market trended lower. $Bitcoin (BTC.CC)$ fell below the $110,000 mark, down more than 5% on the week, while $Ethereum (ETH.CC)$ dropped below $4,000, plunging about 12% over the week.

Top events last week

US regulators investigate suspected insider trading at crypto “treasury strategy” companies

According to the Wall Street Journal, US financial regulators are examining abnormal trading patterns at more than 200 companies that announced crypto treasury strategies, where stock prices surged sharply ahead of disclosures that they would buy bitcoin and other digital assets.

Officials warned such activity may violate Regulation Fair Disclosure (Reg FD). Lawyers noted these letters often mark the start of deeper insider‑trading probes. Many firms have recently announced crypto reserve strategies, emulating $Strategy (MSTR.US)$ by issuing equity and bonds to fund purchases of bitcoin and other tokens.

Data from crypto advisory Architect Partners shows that year to date, 212 new companies have announced plans to raise about $102 billion to buy crypto assets. For many firms, shifting to a crypto treasury strategy involves engaging external investor groups under non‑disclosure agreements to assess interest in privately financed token purchases until the strategy is publicly announced.

Aster Token Shows Strong Momentum, XRP Poised for Key Developments

In other market news, the Binance-backed Aster token has demonstrated significant momentum, reportedly surpassing other notable tokens and related assets like HYPE and $Galaxy Digital (GLXY.US)$ in recent trading volume. This surge suggests growing investor interest and active participation in the Aster ecosystem.

Meanwhile, development within the $Ripple (XRP.CC)$ ecosystem is accelerating, signaling growing utility and institutional interest. Flare Network has launched a wrapped XRP token (FXRP), enhancing its utility across decentralized finance (DeFi) applications by allowing $Ripple (XRP.CC)$ to be used on other platforms. Furthermore, Ripple is advancing its institutional finance strategy with new lending and privacy tools for the XRP Ledger (XRPL), a clear move to position it as a compliant platform for future financial services. This growth is mirrored by corporate adoption, as public company Nature's Miracle (NMHI) successfully secured $2 million in funding specifically for its corporate XRP treasury plan.

US and UK Partner to Form Crypto Task Force, Develop Regulatory Frameworks and Explore Cooperation

The US Treasury Department and the UK Treasury Department jointly announced the formation of a joint task force named the "Transatlantic Working Group for Future Markets." This initiative aims to deepen cooperation between the two nations in digital assets and capital markets, jointly exploring and unifying regulatory frameworks, thereby laying a critical blueprint for the future development path of global cryptocurrencies.

According to the official announcement, this newly established transatlantic working group has been assigned a clear and urgent task: to propose specific recommendations on regulatory cooperation for digital assets within the next 180 days (approximately six months). This report will be submitted to the finance departments of both countries through the "US-UK Financial Regulatory Working Group," to which it belongs.

This collaboration was formally finalized by UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent following a high-level meeting at Downing Street in London. The working group members will be co-chaired by senior officials from both Treasury departments and will broadly include representatives from their respective capital markets and digital asset regulatory bodies.

This cooperation immediately garnered widespread attention and positive responses from the cryptocurrency industry. The industry generally believes that this move is not only a significant recognition of the digital asset sector's legitimacy but also a crucial step toward resolving the long-standing issue of regulatory fragmentation in the market.

US Senate to Hold Digital Asset Taxation Hearing on October 1

The US Senate Finance Committee has scheduled a hearing to review the taxation of crypto assets, where a group of industry experts is expected to provide testimony. The hearing, titled "Examining the Taxation of Digital Assets," will take place on October 1st at the Dirksen Senate Office Building and will be livestreamed.

This meeting aims to explore compliance and enforcement mechanisms for cryptocurrency tax policies, covering tax reporting standards for mainstream cryptocurrencies like Bitcoin and Ethereum. Industry experts believe this hearing could lay the groundwork for the future US digital asset regulatory framework.

Perspectives

Strategy Executive Chairman: Bitcoin Could Appreciate Nearly 29% Annually Over the Next Two Decades

Michael Saylor, Executive Chairman of Strategy, stated in a recent podcast interview that Bitcoin's recent flat price movement is a sign of strength, not weakness, and the market is in a consolidation phase. Long-term holders are selling some positions, while institutional investors are preparing for larger allocations. He noted that "declining volatility is a very good sign."

Looking ahead, Michael Saylor compared the rise of Bitcoin treasury companies to the early days of the petrochemical industry, where a decade of chaos and transformation led to the emergence of diverse products, business models, and wealth. He predicts that Bitcoin will appreciate at an average annual rate of nearly 29% over the next two decades, driving the emergence of new credit and equity instruments.

Deutsche Bank: Bitcoin Could Become a Central Bank Reserve Asset Within 10 Years, Complementing Gold as a Hedge

Deutsche Bank reported on Monday that Bitcoin is poised to become a recognized reserve asset, similar to gold, within the next decade, though gold's leading position in official reserves may persist for now. The report indicates that the US dollar still accounts for 57% of global reserves, but asset diversification trends are evident, with China's US Treasury holdings decreasing by $57 billion in 2024, and major markets tightening cryptocurrency regulation. Deutsche Bank believes that Bitcoin and gold, due to their scarcity and low correlation with other assets, will coexist as complementary tools for hedging against inflation and geopolitical risks.

The bank's analysts noted that Bitcoin's volatility has long hindered its adoption as a reserve asset, but its 30-day volatility hit an all-time low in August, while its price broke above $123,500, suggesting it may be shedding its speculative nature. The bank believes that neither Bitcoin nor gold is likely to replace the dollar's reserve status, and their acceptance process will be similar to gold's, with regulation, macroeconomic trends, and time paving the way.

Crypto-Related Stocks Tracking

Coinbase: Mag7+Crypto Equity Index Futures Now Live

$Coinbase (COIN.US)$ announced that its Mag7 + Crypto Equity Index Futures are officially live. This is the first futures contract in the US to cover both traditional stocks and cryptocurrency ETFs. Provided by Coinbase Derivatives, these index futures are available for both retail and institutional traders through approved FCM partners.

Google to Acquire Right to Purchase 5.4% Stake in Crypto Miner - Cipher Mining

According to Bloomberg, as part of a multi-year data center agreement with AI computing startup Fluidstack, $Alphabet-C (GOOG.US)$ will gain the right to purchase a 5.4% stake in crypto mining company $Cipher Mining (CIFR.US)$ .

According to a statement from Cipher, Google has agreed to guarantee $1.4 billion of Fluidstack's obligations within a ten-year contract with Cipher (not covering the full contract amount), a contract involving approximately $3 billion in lease revenue. This is Google's second such deal with Fluidstack in the past two months, highlighting the strong demand for computing resources for AI services.

Cipher emphasized in its statement that it will leverage Google's support agreement for financing to support its expansion plans. The original ten-year contract includes two five-year extension options, which, if fully exercised, would add an additional $4 billion in revenue.

Cloudflare Announces Launch of NET Dollar, a Fully USD-Backed Stablecoin Supporting New AI-Driven Internet Business Models

Leading connectivity cloud company $Cloudflare (NET.US)$ announced plans to launch NET Dollar, a new USD-backed stablecoin designed to enable instant, secure transactions for the "agentic web." NET Dollar will help establish a new business model for the internet that rewards originality, sustains creativity, and drives innovation in an AI-driven world.

ETH Price Touches BitMNR Cost Line, $400 Away from SharpLink's 3603 CostLine

Ethereum's price has now reached the cost line of $Bitmine Immersion Technologies (BMNR.US)$ , which holds 2.416 million ETH (valued at $9.7 billion). It is now 400 away from the cost line of $SharpLink Gaming (SBET.US)$ , which holds 838,000 ETH (valued at $3.36 billion) at a cost price of $3603.