Bitcoin Surges to $87,000 as ETF Inflows and Rate-Cut Bets Fuel Crypto Rally
Bitcoin holds near $84,500 on ETF inflows and Fed rate hopes, while SEC custody rules and EU scrutiny of Binance reshape crypto regulation.
Source: CoinCentral · Blockonomi · October 3, 2026 at 5:32 PM · AI-assisted report
Single-sourceKUALA LUMPUR, 4 OCTOBER 2026 —
Bitcoin traded near $84,500 this week, with Ethereum and several other major cryptocurrencies moving in tandem, as traders grew more hopeful that the Federal Reserve would hold interest rates steady.
Market Impact
The price action followed a rough September and was supported by renewed inflows into U.S. spot Bitcoin exchange-traded funds and shifting expectations regarding monetary policy.
The broader economic backdrop played a significant role in the week’s market movements. U.S. employers added just 29,000 jobs in September, and the unemployment rate rose to 4.2%. This weaker job growth reduced the odds that the Federal Reserve would need to raise interest rates aggressively. Lower rate expectations tend to support crypto prices by making riskier assets more attractive to investors.
Comments from Federal Reserve officials further reduced expectations for another near-term rate increase, which helped boost demand for these assets. Bitcoin had briefly touched higher levels earlier in the week before settling back near the $84,500 mark.
Institutional and corporate demand provided additional support to the market. U.S. spot Bitcoin ETFs saw money flow back in, with the funds pulling in about $2.4 billion in net inflows during the trading week ending September 25. This inflow helped push Bitcoin ETF flows for 2026 back into positive territory. Strategy, a major corporate holder, continued its accumulation strategy, purchasing another 1,665 BTC to bring its total holdings to 847,666 BTC.
Crypto-linked stocks also moved higher, with shares of Strategy, Coinbase, and Robinhood climbing alongside Bitcoin’s price action.
Citigroup raised its outlook for the sector, increasing its 12-month Bitcoin price target from $82,000 to $113,000. The bank pointed to stronger crypto activity and renewed ETF inflows as key drivers for this adjustment. Citigroup also raised its Ethereum forecast from $2,240 to $3,028. Despite the broader risk-on sentiment, Bitcoin’s dominance, which measures its share of the total crypto market, moved close to 60% late in the week.
This suggests that investors still favored the largest cryptocurrency even as appetite for riskier assets improved overall.
Regulatory developments in the United States and Europe shaped the week’s narrative. The U.S. Securities and Exchange Commission proposed a new framework for how registered investment advisers can custody cryptocurrencies. The proposal could allow advisers to self-custody certain digital assets when a suitable third-party custodian is not available, provided they meet specific security and expertise requirements.
In Europe, regulators took a more cautious stance by examining whether Binance has continued serving European customers without proper authorization under the EU’s Markets in Crypto-Assets (MiCA) rules. Binance stated that some customers use its services under Europe’s “reverse solicitation” exemption, but regulators are now reviewing whether that exemption is being applied correctly.
Ethereum remained in the spotlight, though its price gains trailed Bitcoin’s. A security incident involving MetaMask’s Ethereum validators drew attention after an attacker diverted staking rewards. MetaMask responded by initiating precautionary validator exits. The amount of stolen rewards was estimated at around 0.36 ETH, a relatively small sum. In the stablecoin sector, Tether announced plans to bring USDT functionality to Bitcoin through a project called Utexo.
The plan would allow for private USDT transfers, BTC-USDT swaps, and Bitcoin-backed lending.
Not all projects fared well during the week. Ethereum Layer-2 network Blast announced it is shutting down after assets on the network fell from more than $2 billion at their peak. The closure highlights how tough competition has become among Layer-2 networks as activity consolidates around bigger platforms. While Bitcoin’s attempt to hold near $84,500 remains the key story heading into the new week, high leverage and ongoing regulatory questions mean volatility could stay elevated.
Stronger-than-expected inflation data could also change the outlook and pressure prices again, indicating that the current market stability is contingent on continued favorable macroeconomic signals.