A major split is emerging between Bitcoin and Ethereum in the market. Bitcoin is acting as a macro hedge, holding steady around $112,000. Traders are actively positioning for upside in Ethereum, eyeing $5,000. A profound and telling split has fractured the cryptocurrency market. Bitcoin, the long-reigning king, has settled into a stoic holding pattern, a […] The post Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout appeared first on CoinJournal.A major split is emerging between Bitcoin and Ethereum in the market. Bitcoin is acting as a macro hedge, holding steady around $112,000. Traders are actively positioning for upside in Ethereum, eyeing $5,000. A profound and telling split has fractured the cryptocurrency market. Bitcoin, the long-reigning king, has settled into a stoic holding pattern, a […] The post Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout appeared first on CoinJournal.

Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout

2025/09/04 11:29
  • A major split is emerging between Bitcoin and Ethereum in the market.
  • Bitcoin is acting as a macro hedge, holding steady around $112,000.
  • Traders are actively positioning for upside in Ethereum, eyeing $5,000.

A profound and telling split has fractured the cryptocurrency market.

Bitcoin, the long-reigning king, has settled into a stoic holding pattern, a defensive fortress against the gathering storms of macroeconomic uncertainty.

But the real action, the aggressive positioning for explosive growth, is happening in a different court.

A great rotation is underway, and traders are increasingly placing their bets on a new champion to lead the charge into September: Ethereum.

The fortress: Bitcoin as a macro hedge

Bitcoin is currently stuck in consolidation, trading near $112,000. But its lack of upward momentum is, paradoxically, part of its emerging narrative.

It is increasingly being treated not as a speculative growth asset, but as a steady macro hedge, a digital counterpart to gold.

This view is being driven by the deep uncertainty emanating from Washington.

In a recent note, QCP Capital wrote that persistent doubts about the Federal Reserve’s independence are keeping risk premiums elevated, a dynamic that weakens the dollar and directly supports hedges like Bitcoin and gold.

The options market tells a similar story of defense.

Flowdesk reported muted implied volatility in Bitcoin, suggesting traders are positioning for stability, not a breakout.

The skew remains negative, meaning puts are expensive—a clear sign that the market is paying a premium for downside protection.

The spearhead: Ethereum as the engine of ascent

While Bitcoin holds the defensive line, Ethereum is being positioned as the market’s spearhead. This is where traders see the real potential for a September breakout.

The data is clear: ETH risk reversals have recovered sharply from their recent selloff, indicating a renewed and aggressive demand for upside exposure.

Prediction markets are validating this theme with real-money bets. Polymarket sentiment shows traders expect Bitcoin to remain capped near $120,000, while giving Ethereum a strong chance of breaking the coveted $5,000 mark.

This view is consistent with its powerful 20 percent rally over the past month and the surging institutional interest being funneled through ETF inflows.

The widening rebellion

This rotation is not just a two-horse race. The renewed appetite for risk is broadening, with capital flowing into a wider array of altcoins. Solana (SOL) options have seen a surge in activity, with flows heavily skewed to the upside.

At the same time, spot activity has rotated into so-called “ETH beta” names like AAVE and AERO, as well as “SOL betas” like RAY and DRIFT.

This is a crucial sign that market breadth is improving, as conviction spreads beyond the majors.

The market is sending a clear, if complex, signal. The macro chaos is reinforcing Bitcoin’s role as a hedge against inflation and institutional decay.

But the momentum, the capital flows, and the speculative energy are all gathering in the court of its challenger.

The stage is set for a fascinating and potentially volatile September, where the fortress and the spearhead will finally have their mettle tested.

Market updates:

BTC: Bitcoin remains in a consolidation phase around the $110,000–$112,000 range, marked by waning short‑term volatility.

ETH: ETH is trading near $4,400. Its rally is being fuelled by surging institutional interest, especially via ETF inflows, and anticipation surrounding the upcoming Fusaka network upgrade.

Gold: Gold is trading around record highs, propelled by expectations of an imminent Federal Reserve rate cut (markets now price in about a 92% chance), weakening confidence in Fed independence, and increased demand from conviction buyers like ETFs and central banks.

The post Crypto update: Why Bitcoin is stalling while Ethereum eyes a breakout appeared first on CoinJournal.

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OFAC Designates Two Iranian Finance Facilitators For Crypto Shadow Banking

OFAC Designates Two Iranian Finance Facilitators For Crypto Shadow Banking

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Iranian financial facilitators for coordinating over $100 million worth of cryptocurrency in oil sales for the Iranian government, a September 16 press release shows. OFAC Sanctions Iranian Nationals According to the Tuesday press release, Iranian nationals Alireza Derakhshan and Arash Estaki Alivand “used a network of front companies in multiple foreign jurisdictions” to transfer the digital assets. OFAC alleges that Alivand and Derakhshan’s transfers also involved the sale of Iranian oil that benefited Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL). IRGC-QF and MODAFL then used the proceeds to support regional proxy terrorist organizations and strengthen their advanced weapons systems, including ballistic missiles. U.S. officials say the move targets shadow banking in the region, where illicit financial actors use overseas money laundering and digital assets to evade sanctions. “Iranian entities rely on shadow banking networks to evade sanctions and move millions through the international financial system,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “Under President Trump’s leadership, we will continue to disrupt these key financial streams that fund Iran’s weapons programs and malign activities in the Middle East and beyond,” he continued. Dozens Designated In Shadow Banking Scandal Both Alivand and Derakhshan have been designated “for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of the IRGC-QF.” In addition to Alivand and Derakhshan, OFAC has sanctioned more than a dozen Hong Kong and United Arab Emirates-based entities and individuals tied to the network. According to the press release, the sanctioned entities may face civil or criminal penalties imposed as a result
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