Cryptocurrency markets extended their rebound after Bitcoin briefly fell below $80,000, although investment products tracking Ether, Solana and Zcash continued to see money leaving their funds.
Strive Secures $630 Million Through Expanded SATS Offering
Bitcoin treasury company Strive (ASST) increased its planned SATS preferred stock sale from 5 million shares to 7 million shares, expanding the size of the offering.
With shares priced at $90, the sale is expected to generate $630 million in gross proceeds.
The preferred stock carries a 15% dividend rate, which translates into an effective yield of approximately 16.67% based on the $90 purchase price.
Strategy Prepares to Introduce Daily STRC Dividends
Strategy, the Bitcoin-focused company led by Michael Saylor, is moving ahead with a proposal to switch its high-yield preferred stock STRC from monthly dividend distributions to daily payments beginning November 1.
The change remains subject to shareholder approval. Voting is underway, and the outcome is expected to be announced on October 28. Strategy’s latest announcement is therefore conditional on shareholders approving the revised payment schedule.
STRC has recovered from the sharp declines recorded earlier in the summer but remains marginally below its $100 par value. The stock closed Thursday at $99.53, leaving Strategy unable to raise additional Bitcoin-buying capital through new share issuance at par.
Fed Chair Warsh Leaves Rate Decision Open as Hike Expectations Fall
Federal Reserve Chair Kevin Warsh declined to signal whether the central bank would raise interest rates at its October meeting during a fireside discussion at an International Monetary Fund event.
“I don’t prejudge meetings,” Warsh said, explaining that he would not announce his decisions before policymakers convene. He added that the Federal Reserve was entering a new chapter and would no longer follow that approach.
Warsh also defended September’s rate increase, saying the move was necessary to help bring inflation under control.
He described the artificial intelligence boom as the most important development currently shaping the global economy and warned that the surge in investment could contribute to inflationary pressures. Although AI is expected to deliver productivity gains, Warsh said the transition would likely involve difficulties.
In bond markets, U.S. Treasury yields moved higher. The 10-year yield rose 2.9 basis points to 5.12% compared with the previous close.
At the same time, market-implied expectations for an October rate increase declined sharply. The probability of a hike fell to 15%, down from nearly 45% immediately after Wednesday’s hotter-than-expected inflation report.
Binance Executive Says Inflation-Driven Crypto Weakness May Be Temporary
Catherine Chen, head of institutional at Binance, said the recent cryptocurrency market decline triggered by U.S. inflation data appears to reflect a temporary shift in sentiment rather than a fundamental deterioration.
“The CPI-driven selloff is a sentiment shock, not a structural break,” Chen said, referring to the Consumer Price Index, which tracks changes in consumer prices.
Chen expects inflation to reach a peak around October, while clearer evidence of easing price pressures could emerge by March 2027. She suggested that falling energy costs and moderating inflation could eventually provide support for a cryptocurrency market recovery.
“A difficult trading day does not determine the outlook for the next several months,” Chen added, indicating that an improvement in market conditions may be closer than investors expect.
Zcash Jumps 11% While Its ETF Records Withdrawals
Bitcoin recovered above $82,000 on Friday after briefly dropping below $80,000 the previous day. Zcash (ZEC) led the wider cryptocurrency rebound, gaining 11% to approximately $1,230, even as investors withdrew money from its only U.S.-listed spot ETF.
Solana (SOL) and Ether each advanced more than 3%, trading near $106 and $2,450, respectively. Dogecoin and XRP gained between 2% and 3%, while BNB, Hyperliquid’s HYPE and Tron rose approximately 1%. Bitcoin itself added nearly 1%, according to CoinDesk data.
However, the recovery in token prices was not matched by stronger fund demand. Data from SoSoValue showed that the U.S. spot Zcash ETF recorded roughly $15 million in outflows on Thursday, marking its fifth withdrawal day this month.
Ether investment products experienced approximately $60 million in withdrawals, while Solana funds lost nearly $10 million, extending their outflow streak to nine consecutive days. XRP funds also reported a small net outflow.
Bitcoin ETFs attracted around $5 million in net inflows, providing a modest positive signal after investors withdrew $261 million on Wednesday.
A second consecutive day of Bitcoin ETF inflows would offer further evidence that institutional investors are returning to the market and supporting BTC’s recovery from its brief fall below $80,000.
