Digital assets ended the week lower as Bitcoin and Ether traded in line with AI-linked equities and a sharp rise in oil prices. Bitcoin reached $84,863 on Wednesday, gave back the move after a Nasdaq sell-off on Thursday, and on Saturday briefly fell below $80,000 for the first time since October 15 after the US reduced staff at several Middle East embassies. Institutional demand was uneven: US spot Bitcoin ETFs recorded $301.2 million of net inflows for the week, yet $773.5 million left the funds over the final two sessions. With Brent crude at $116.72 and the Federal Reserve decision due on Wednesday, positioning going into the new week is cautious.
Bitcoin: ETF Demand Fails to Sustain the Recovery
Bitcoin | Price |
Weekly open | $82,109 |
Weekly high | $84,863 |
Weekly low | $79,277 |
Weekly close | $80,121 |
Weekly performance | -2.42% |
Bitcoin recovered toward $85,000 midweek before reversing alongside the technology-stock sell-off. Rising oil prices and uncertainty ahead of the Federal Reserve meeting weighed on sentiment, while weekend liquidations accelerated the move below $80,000. US spot Bitcoin ETFs attracted approximately $301.2 million in net weekly inflows. However, $773.5 million of withdrawals on Thursday and Friday highlighted deteriorating demand. Separately, Strategy announced a 267 BTC purchase for $22.1 million, executed the previous week, confirming continued corporate treasury participation. The focus now is whether spot demand can support a recovery. $79,300 and $84,900 mark the weekly trading range. The Fed decision and US inflation data could trigger renewed volatility, making liquidity and execution timing particularly relevant for larger orders.
Ethereum: ETF Outflows Reinforce Relative Weakness
Ethereum | Price |
Weekly open | $2,411 |
Weekly high | $2,522 |
Weekly low | $2,285 |
Weekly close | $2,329 |
Weekly performance | -3.37% |
Ethereum followed Bitcoin’s reversal but underperformed by approximately 0.95 percentage points. Persistent fund withdrawals and leveraged selling accompanied the decline, leaving ETH near the lower end of its weekly range. US spot Ethereum ETFs recorded approximately $220.7 million in net weekly outflows. Liquidation pressure was also substantial: ETH accounted for $136.7 million during Saturday’s four-hour liquidation window, with 92.7% involving long positions. These figures indicate a sharp reduction in leveraged bullish exposure. A stronger recovery would require improving ETF demand and firmer performance against Bitcoin. $2,285 and $2,520 define the recent range. Ahead of the macro releases, ETH’s sensitivity to forced selling warrants particular attention to position sizing and available liquidity.
Top Stories of the week You need to know
OCC debuts final rule implementing Trump-signed GENIUS Act
The OCC became the first US regulator to finalise rules implementing the GENIUS Act, establishing requirements for payment stablecoin issuance, reserves, redemptions, risk management and custody. Effective January 18, 2027, the framework provides pathways for banks and non-bank issuers, alongside standards for foreign issuers. Stablecoin issuers remain prohibited from paying interest directly, but the OCC removed a proposed presumption against certain third-party rewards arrangements, opting instead for case-by-case assessments to prevent circumvention. The rules provide greater regulatory clarity while leaving the treatment of individual rewards programmes subject to scrutiny.
SEC Flags AI ‘Super Intelligence’ and Tokenization as Systemic Market Risks
The SEC has included advanced AI and tokenisation in its fiscal 2027 examination priorities, signalling closer scrutiny of their effects on market operations, compliance, fraud prevention and investor protection. Tokenisation falls under evolving market infrastructure risks, meaning firms developing tokenised products should expect attention to their controls and compliance arrangements. Although crypto remains absent as a standalone category, the priorities bring digital asset infrastructure into the examination framework covering more than 34,000 registered entities, including investment advisers, broker-dealers and transfer agents.
HSBC launches Hong Kong dollar stablecoin for retail payments
HSBC has launched RedCoin (RCHKD), a Hong Kong dollar stablecoin redeemable one-for-one, for transfers and merchant payments through its PayMe app. The rollout will allow more than 3.3 million users to activate stablecoin wallets, with custody provided by HSBC Digital Assets Custody. Following its stablecoin issuer licence approval in April, HSBC plans to integrate RedCoin into its mobile banking app later this year, enabling subscriptions to tokenised investment products, including a Hong Kong dollar money market fund. The bank also intends to expand into corporate and institutional applications, extending the initiative beyond retail payments.
Stablecoin transfers quadruple to $891B as US banks expand adoption: Report
Cointelegraph
Stablecoins processed $891 billion in adjusted transfers during Q3 2026, equivalent to more than $400 million per hour, according to Coinbase-commissioned research by The Block. 73% of screened transfer volume occurred outside US banking hours, highlighting their role in round-the-clock settlement. Adoption is also expanding: seven of the ten largest US banks have tested stablecoins or tokenised deposits, while 30% of mid-market companies conducting cross-border business are using or piloting stablecoins, up from 10% in 2024. Despite this growth in activity, stablecoin market capitalisation remained broadly unchanged year over year at approximately $301 billion, suggesting more intensive use of existing supply.