## Market Update: Cryptocurrencies See Minor Declines

Bitcoin and other cryptocurrencies experienced slight declines early Wednesday, failing to recapture the **positive momentum** that has defined the sector for much of this year.

According to CoinDesk data, the price of **Bitcoin** dropped 0.7% over the past 24 hours to $107,844. **BTCUSD** is now trading approximately 14% below its **record high** reached earlier this month.

Other major cryptocurrencies also saw losses:
- **Ether (ETHUSD)** fell 1.2%
- **XRP (XRPUSD)** dropped 1.9%
- **Solana (SOLUSD)** declined 1.2%

Meanwhile, stock futures showed little movement, with the **S&P 500** rising 0.1% and **Nasdaq** trading flat in premarket activity.

## Crypto Market Diversity and Current Sentiment

The cryptocurrency space remains highly diverse, with thousands of coins available to investors—about 80 of them boasting market values exceeding $1 billion. Most tokens were in negative territory over the past day.

Whether this represents the end of a **bull cycle** or merely a **consolidation phase** before the next surge remains uncertain.

Alex Kuptsikevich of FxPro noted: "At current levels, the rule of 'buy when everyone is afraid' may work, or there may be a switch to a more intense sell-off after three months of stagnation."

Analysts at **B2BINPAY** anticipate altcoins will continue facing pressure, with Bitcoin and large-cap altcoins maintaining dominance unless a clear rotation is triggered. They stated: "Through end-2025 and into early 2026, the market may enter a regime where major coins retain dominance. **Liquidity**, measured via **stablecoin** flows (particularly **USDT**), becomes a key indicator to monitor, while **macro factors** such as dollar strength, real yields, and regulatory clarity determine positioning."

Cryptocurrencies are typically viewed as **risk assets**, with smaller coins often suffering more when investors shift toward safer assets like bonds or certain stocks during periods of high interest rates or economic uncertainty.

## Fraud Allegations Surrounding Melania Trump's Meme Coin

In separate crypto news, the architects behind First Lady **meme coin $MELANIA** have been accused of fraud. Court filings released Tuesday allege that the organizers launched the coin knowing it would plummet in value.

Newly filed court documents reveal that investors are accusing executives of the **Meteora** cryptocurrency exchange platform, where $MELANIA was initially traded, of orchestrating a scheme that allowed them to indirectly purchase large quantities of the virtual coin.

According to AFP reports, Meteora did not immediately respond to requests for comment.

Meme coins are considered **speculative assets** without intrinsic value. Notably, President Donald Trump also launched his own meme coin, **$TRUMP**, around the same time as his wife.

Bitcoin price, Ethereum, XRP and other cryptos fell. Separately, the architects of Melania Trump's meme coin were accused of fraud.

Bitcoin and Major Altcoins Slip as Melania Trump's Meme Coin Architects Face Fraud Charges

## Bitcoin Whale's Massive Short Bet Sparks Market Concerns

Bitcoin's **price has rebounded** since the October 10 crash, but skepticism remains among some traders. A prominent **Bitcoin OG** who previously earned **$200 million** by shorting BTC ahead of the October 10 sell-off has now placed a new **$234 million short position** on Bitcoin via the decentralized exchange Hyperliquid, according to on-chain analytics firm Arkham.

### The Bearish Bet Details

The whale's new short position emerged as BTC's price rally from the October 10 low of about **$104,000** stalled near **$114,000** on Tuesday. Since then, the cryptocurrency has pulled back to around **$108,500**. The liquidation price for this massive short is **$123,000**, the price point at which the position will face a margin call and be forcibly closed by the exchange.

### What Happened on October 10?

Prices plunged from around **$122,000** to **$104,000** on October 10, with most losses occurring late in the day after President Trump announced an additional **100% tariff** on Chinese goods, on top of existing 30% tariffs. This announcement followed China's move to tighten controls on rare earth exports, pushing risk assets lower.

The BTC sell-off was intensified by **technical issues at Binance**, which triggered volatility in key tokens like Ethena's synthetic dollar USDe. Interestingly, the BTC whale opened a massive short position about **30 minutes before** President Trump's tariff announcement, generating significant profits and sparking allegations of **insider trading**.

![BTC OG whale places bearish bet worth millions.](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2Fc9b4764d52b1d8f7679e29e0a2fae376d154bcb1-3840x2160.png%3Fauto%3Dformat&w=3840&q=75)

BTC has pulled back sharply from Tuesday's high of around $114,000.

Bitcoin OG Who Made $200M on Trump Tariffs Now Bets $234M Against BTC - Is a Crash Coming?

## Google's Quantum Breakthrough Sparks Bitcoin Security Debate

Google has announced a **verifiable "quantum advantage"** with its **Willow chip**, which completed a calculation that would take classical supercomputers **thousands of times longer**. This development is reigniting discussions in the cryptocurrency community about the potential threats quantum computing could pose to **Bitcoin**.

### The Quantum Computing Milestone

The Willow chip simulated **quantum chaos** in just two hours by measuring **Out-of-Time-Order Correlators (OTOCs)**, a key benchmark for tracking particle behavior. This achievement brings quantum computing closer to practical applications, such as **Hamiltonian learning**, which could model complex molecular structures beyond current capabilities.

### Implications for Bitcoin and Cryptography

Bitcoin's operation and security rely on **cryptographic methods** that quantum computing might one day challenge. However, experts emphasize that this reality is still distant. **Kostas Kryptos Chalkias**, co-founder and chief cryptographer of Mysten Labs, stated, "There’s no evidence today that any computer, even a classified one, can break modern cryptography. We’re at least 10 years away from that."

### Market Reactions

Following the announcement, **Alphabet's (GOOG) shares** saw a 1.5% increase before settling 0.7% higher. Concurrently, **Bitcoin (BTC)** experienced a minor 0.7% boost, though it remains 4% lower over the past 24 hours.

![Quantum Computing Optics (Ben Wicks/Unsplash)](https://www.coindesk.com/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2Fs3y3vcno%2Fproduction%2F036a291e9b1c36e04e3714b7a4bebf769e030c17-1920x1080.jpg%3Fauto%3Dformat&w=3840&q=75)

Google said it achieved a "quantum advantage," with its Willow chip completing a calculation that would take classical supercomputers thousands of times longer.

Google's Quantum Leap: Is Bitcoin's Security at Risk?

![Bitcoin News](https://stat.theblock.co/cdn-cgi/image/format=webp,q=50/wp/uploads/2024/09/20240904_Bitcoin_News_3-1200x675.jpg)

## Quick Take

- **Bitcoin fell below $108,000** as traders derisked ahead of unpredictable macroeconomic events
- **U.S. President Trump is expected to meet Chinese leader Xi Jinping** later this month, with trade tensions likely to persist afterward

## Market Decline and Analyst Insights

**Bitcoin fell below $108,000** as traders assessed lingering macroeconomic risks, primarily **trade tensions between the U.S. and China**.

According to The Block's crypto price page, **bitcoin fell 2.6% in the past 24 hours to $107,854** as of 1:40 a.m. ET Tuesday. The cryptocurrency had briefly rebounded above $111,200 on Monday after recovering from a three-day slump.

One analyst told The Block that **crypto prices may continue to exhibit similar volatility in the near term**.

"We simply believe that **macro concerns are driving day-to-day changes in the market**," said Jeff Mei, COO at BTSE. "**Volatility will continue as long as there are trade tensions between the U.S. and China**."

Mei added that the latest decline was primarily driven by **traders derisking ahead of the upcoming meeting between Chinese leader Xi Jinping and U.S. President Trump**, scheduled to take place in South Korea at the end of October.

"While it's possible that they may come to an agreement at the end of the month and cause markets to rally, **it's unlikely that tensions will evaporate altogether**," Mei added.

## Broader Market Impact

**Macro headwinds also dragged down major altcoins**, with **ether slipping 4.77% to $3,855**, **BNB falling 5.36%**, and **Solana losing 4.26%**.

**Spot crypto exchange-traded funds saw outflows on Monday**. **Spot BTC ETFs reported $40.5 million in net outflows**, while **spot ETH ETFs saw $145.7 million move out from the fund**, according to SoSoValue data. This came after **BTC ETFs recorded their second-largest net weekly outflows last week, worth $1.23 billion**.

With retail and institutional both showing unfavorable numbers, **The Block's Fear and Greed Index stands at 29, which indicates fear among market participants**.

## Market Outlook and Investor Strategy

"**The biggest risk to crypto markets today is the fact that macro developments and trade discussions are unpredictable** — markets can rise and fall at the whims of a single tweet," Mei said. "**All investors can really do is diversify their assets and attempt to hedge against uncertainty**."

Traders, hopeful for another interest rate cut this month and an early end to quantitative tightening, now look to **Friday's release of the consumer price index data, an important inflation indicator**.

**CME Group's FedWatch Tool currently indicates a 98.9% chance that the Federal Reserve may cut rates by 25 basis points**.

One analyst told The Block that crypto prices may continue to exhibit similar volatility in the near term.

Bitcoin Plunges Below $108,000: Analyst Warns Volatility Will Continue Amid US-China Tensions

## Coinbase Acquires Echo to Transform Capital Formation

Coinbase has acquired **Echo**, the leading onchain capital raising platform, for approximately **$375 million**. This strategic move aims to make it easier for companies to raise funds and grow, while giving the community early access to unique investment opportunities.

Echo is an onchain platform that helps communities invest together and provides founders with more options for their cap table. Like Coinbase, Echo believes in **democratizing early-stage investing**, enabling more people to support the next generation of breakthrough companies. Founded by **Cobie**, a crypto OG and long-time advocate for community-driven investing, Echo has pioneered tools that make fundraising more **inclusive, transparent, and efficient**.

The motivation behind this acquisition is clear: to create more **accessible, efficient, and transparent capital markets**. Currently, founders often struggle to raise capital, and individual investors lack opportunities to invest in private token sales.

Echo addresses these challenges by allowing projects to raise funds directly from their community through private sales or self-hosted public token sales using **Sonar**. Integrating Echo's tools will enhance direct community participation, connecting projects with capital entirely onchain. Initially, the focus will be on crypto token sales via Sonar, with plans to expand support to **tokenized securities and real-world assets** over time, leveraging Echo's infrastructure.

Echo has already made significant progress in opening up private markets, helping projects raise **over $200 million** across approximately 300 completed deals since its launch. Its self-hosted public token sale product, Sonar, has shown early success, notably powering Plasma's XPL token sale.

With this acquisition, Coinbase is building a **full-stack solution** for crypto projects and investors, covering everything from launch to fundraising to secondary trading.

![A full-stack solution for crypto projects and investors](https://images.ctfassets.net/sygt3q11s4a9/2onEUX0DBei6qt7md4xY5Q/139becfa1b8aa2b12b6cccdc3d28b874/espresso_graphic_v7_960x540.gif)

### Key Benefits:
- **For builders**: Easier access to capital and community-aligned fundraising tools like Echo for private investment groups and Sonar for self-hosted public token sales.
- **For investors**: New, differentiated opportunities that were previously out of reach, either through a trusted platform like Echo or through direct offerings with Sonar.
- **For the onchain economy**: A more efficient, transparent, and globally accessible capital market that drives innovation and growth.

Echo complements Coinbase's recent acquisition of **Liquifi**, which streamlines token creation and cap table management for early-stage teams. While Liquifi strengthened support for builders at the start of their journey, Echo extends that support into fundraising. Combined with Coinbase's existing strengths in exchange listings, custody, staking, trading, and financing, the company is now equipped to support token issuers and investors across the full lifecycle – from launch to fundraising to secondary markets.

Coinbase is already a trusted platform where users, liquidity, and trust converge. Expanding into fundraising removes friction, empowering builders and investors and enabling the ecosystem to grow.

Coinbase has acquired Echo, the leading onchain capital raising platform, for approximately $375M. By joining forces, we’re making it easier for companies to raise funds and grow, and giving the community early access to unique investment opportunities.

Coinbase's $375M Echo Acquisition: Revolutionizing Onchain Fundraising for Crypto Projects

## IBIT ETF Performance Update

The **iShares Bitcoin Trust ($IBIT)** has shown remarkable resilience in recent trading sessions, continuing its recovery trajectory despite some short-term volatility. 

### Current Market Performance

- **Recent Performance**: IBIT is currently down **2.45%** over the past 5 days, indicating some near-term pressure
- **Strong Recovery Momentum**: Despite the recent dip, the ETF remains **18.62% higher** in the current period, showcasing significant recovery strength
- **Bitcoin Correlation**: As a Bitcoin-focused ETF, IBIT's performance closely tracks the underlying cryptocurrency market movements

### Market Context

The recovery in IBIT comes amid broader **cryptocurrency market stabilization** and increasing institutional interest in Bitcoin exposure through regulated investment vehicles. The trust provides investors with direct exposure to Bitcoin price movements without the complexities of direct cryptocurrency ownership.

### Trading Considerations

Investors should note that while IBIT offers convenient Bitcoin exposure, it still carries the inherent **volatility and risk** associated with cryptocurrency investments. The trust's performance is directly tied to Bitcoin price fluctuations and market sentiment toward digital assets.

How is IBIT stock faring? The iShares Bitcoin Trust ($IBIT) continued its recovery today. It is now down 2.45% over the past 5 days, but remains 18.62% higher in th...

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