Bitcoin Recovers as Markets Find Calm After Turbulence

Bitcoin Recovery and Market Calm After Turbulence

After last week's rollercoaster, Bitcoin found its footing again and rose back above $110,000 as broader markets strengthened and Japanese exchanges broke records. Altcoins followed suit, with ETH, SOL, and XRP posting strong gains, suggesting confidence in markets is beginning to return. Is this the start of a new rally? Time will tell.

US Government Becomes One of Largest Bitcoin Holders

Surprisingly, the US government has become one of the world's largest Bitcoin holders. It now owns billions of dollars in cryptocurrency, seized from cases like Silk Road. This reserve has become an odd subplot in every bull market, as traders closely monitor government wallets for potential sales. Digital gold that your government is literally vaulting.

New York Establishes Its Own Blockchain Office

New York City Mayor Eric Adams announced the establishment of a new Digital Assets and Blockchain Office. The office will focus on policy, innovation, and attracting blockchain businesses to the city. Considering how long regulators have tried to block crypto in New York, this is somewhat of a full-circle moment.

BlackRock Invests in Tokenization

The world's largest asset manager BlackRock is developing tokenization technology, riding on the success of its Bitcoin and Ethereum ETF products. Next up are real-world assets like bonds and private credit. CEO Larry Fink's vision of "everything will be tokenized" appears to be transforming from a marketing slogan into a concrete strategic plan.

Galaxy Digital's Alex Thorn Predicts Next Rally

Galaxy Digital's research director Alex Thorn believes the next big crypto rally is already loading. According to him, three key factors support this: improving liquidity, institutional accumulation, and a renewed awakening of the ETF boom. Real capital is flowing beneath markets, even if prices don't fully reflect it yet.

Stripe Gets License for Stablecoin Services

Stripe has received approval from US regulators (OCC) to offer stablecoin issuance and settlement services under federal banking supervision. This is a significant step in mainstreaming crypto payments. Stripe is building a bridge between fintech and blockchain, bringing stablecoins to everyday life without chaos.

Macro Outlook: Fed and Market Liquidity Tightening

Crypto markets have had a challenging week following major liquidation events. Markets need time for leverage to unwind and for new capital to return. Meanwhile, US stock markets partially recovered, thanks to lighter tones from both Trump and the Fed. The Fed's Beige Book noted slowing consumption, rising prices, and employers cutting staff – all indications of moderate, not collapsing, economic development.

Fed Chair Jerome Powell also hinted that the Quantitative Tightening (QT) program is nearing its end. The central bank's balance sheet is approaching what is considered an "adequate" reserve level, but local funding pressures and rising repo rates suggest reserves may already be too low. Wednesday's SRF facility usage rose to its highest level since the pandemic, indicating tightening liquidity pressures.

Increased SRF usage indicates tightening banking system liquidity. Meanwhile, the RRP facility has nearly emptied, and bank reserves may be too low to compensate for this shortfall. This could lead to the Fed having to end QT and restart monetary policy liquidity measures that practically resemble QE.

Under these conditions, Bitcoin often acts as a liquidity barometer, and its recent weak performance may be a warning sign. While we still view the macro environment as positive in the longer term, short-term caution is warranted. However, this setup could ultimately lead to parabolic growth in 2026.

OKX Expands Cooperation with Standard Chartered to Europe

OKX announced the expansion of its partnership with Standard Chartered to the European Economic Area (EEA). Earlier this year, the service launched first in the UAE, offering institutional clients the ability to mirror their assets to OKX while keeping them safely in a G-SIB bank.

Kraken Acquires Small Exchange in the US

Kraken announced the acquisition of CFTC-licensed Small Exchange derivatives exchange for $100 million. This enables the establishment of a fully US-domestic derivatives market. According to the company, this combines spot, futures, and margin products into a single regulated liquidity system.

Uniswap Brings Solana to Its Interface

Uniswap Labs announced that Solana is now supported directly in Uniswap's web application. This is the first time Uniswap has enabled trading on a non-EVM network. Users can now trade tokens from Solana, Ethereum, Base, and other networks in the same application.

Japanese Banks Bring Stablecoin and Plan Bitcoin Purchase

Three of Japan's largest banks, MUFG, Sumitomo Mitsui, and Mizuho, are developing a joint stablecoin pegged to both the yen and US dollar. The goal is to enable efficient international payments. Additionally, Japan's Financial Services Agency is considering regulatory changes that would allow banks to invest directly in cryptocurrencies, including Bitcoin. The regulatory reform would also enable banking groups to operate as crypto exchange operators.