By the end of the week, the total market capitalization stood at $4.12 trillion, with Bitcoin’s market share rising to 58.5%. Meanwhile, Bitcoin ETFs saw inflows of $2.719 trillion, and Ethereum ETFs added $663.1 million.
The initial market rally was triggered by the U.S. government shutdown: starting October 1, federal agencies ceased operations as Republicans and Democrats failed to reach a consensus on raising the national debt ceiling. As a result, about 750,000 employees were placed on forced leave for at least two weeks, and key economic data stopped flowing to the market. This boosted investor interest in cryptocurrencies as a capital preservation tool — primarily BTC and ETH — since periods of political instability traditionally drive demand for decentralized assets. Against this backdrop, “digital gold” renewed its all-time high at 126,000.00 (according to Binance, the token peaked at 126,764.00), after which traders began profit-taking, leading to a correction. Additional pressure on the market came from uncertainty over the next moves by the U.S. Federal Reserve: following the release of ADP’s September private-sector employment data, which unexpectedly showed a 32,000 decline instead of the forecasted 52,000 increase, confidence among analysts in the Fed’s dovish stance strengthened.
Subsequent comments from officials and the publication of the latest meeting minutes confirmed a lack of consensus within the regulator. Some board members support two rate cuts this year to stimulate the labor market, while others argue inflation remains too high and call for just one adjustment — or none at all. The situation is further complicated by the lack of fresh economic data due to the shutdown, making future Fed actions even harder to predict. Finally, the crypto community was alarmed by a new initiative from Democratic lawmakers proposing amendments to the Crypto Market Structure Bill (CLARITY). Under the proposal, any organization generating income from DeFi platforms would be regulated as a broker. Experts warn that if enacted, this could effectively outlaw the DeFi market in the U.S. Despite the current downtrend, analysts remain relatively calm, noting that investors continue to view digital currencies as safe-haven assets amid U.S. political uncertainty. This is evidenced by the ongoing inflow into crypto ETFs, the declining token reserves on centralized exchanges — now at a six-year low — and the Fear & Greed Index holding steady at 64.
Another notable event this week was the atypical behavior of the BNB token, which climbed to third place by market capitalization. The token’s rise coincided with its growing adoption in various regions — notably Kazakhstan, where a state-backed BNB fund was launched. However, such a sharp price increase has raised community concerns about possible manipulation by its issuer, the Binance exchange.
Overall, the cryptocurrency market remains in a complex state, and next week most digital assets may either extend their decline or enter a consolidation phase.