Cryptocurrency prices continued to recover after Bitcoin briefly slipped below $80,000, although investment funds linked to Ether, Solana and Zcash continued to record withdrawals.
Strive Boosts SATS Preferred Stock Sale to $630 Million
Bitcoin treasury company Strive (ASST) expanded its latest preferred stock offering, increasing the number of SATS shares available from 5 million to 7 million.
The shares were priced at $90 apiece, generating $630 million in gross proceeds for the company. SATS carries a 15% dividend rate, equivalent to an effective yield of approximately 16.67% at the offering price.
Strategy Moves Toward Daily Payments for STRC
Strategy, led by Michael Saylor, is preparing to change the dividend schedule for its high-yield preferred stock STRC from monthly distributions to daily payments, with November 1 set as the proposed starting date.
The change still requires shareholder approval. Voting is ongoing, and the results are expected on October 28. Strategy’s announcement is conditional on investors approving the proposed adjustment.
STRC has rebounded from the steep declines seen earlier in the summer but continues to trade slightly below its $100 par value. The stock closed at $99.53 on Thursday, limiting Strategy’s ability to generate additional capital for Bitcoin purchases by issuing new shares at par.
Warsh Offers No Commitment on October Rates as Hike Odds Decline
Federal Reserve Chair Kevin Warsh declined to provide guidance on whether policymakers would increase interest rates at their October meeting during a fireside chat at an International Monetary Fund event.
“I don’t prejudge meetings,” Warsh said, emphasizing that he would not announce policy decisions before the relevant meetings take place. He also described the current period as a new chapter for the Federal Reserve.
Warsh defended September’s interest-rate increase, calling it a necessary step toward controlling inflation.
He also identified the artificial intelligence boom as the leading development affecting the global economy, warning that the investment surge could contribute to price pressures. While AI could ultimately improve productivity, he cautioned that the adjustment would be uneven.
U.S. Treasury yields rose, with the 10-year yield gaining 2.9 basis points to 5.12% compared with the previous close.
Meanwhile, market expectations for an October rate hike eased considerably. The implied probability of an increase dropped to 15%, down from nearly 45% immediately after Wednesday’s stronger-than-expected inflation report.
Binance Executive Views Crypto Sell-Off as a Temporary Reaction
Catherine Chen, Binance’s head of institutional, said the latest cryptocurrency downturn following the U.S. inflation report appears to be a short-term response to changing sentiment rather than a sign of deeper structural weakness.
“The CPI-driven selloff is a sentiment shock, not a structural break,” Chen said, referring to the Consumer Price Index, which measures changes in consumer prices.
She expects inflation to peak around October, with more convincing evidence of easing price pressures potentially appearing by March 2027. According to Chen, lower energy prices and moderating inflation could eventually support a recovery across cryptocurrency markets.
“A difficult trading day does not determine the outlook for the next several months,” she added, suggesting that the conditions for improved market performance could be approaching.
Zcash Climbs 11% Despite Continued ETF Withdrawals
Bitcoin moved back above $82,000 on Friday after briefly falling below $80,000 during the previous session. Zcash (ZEC) led the rebound among major cryptocurrencies, surging 11% to approximately $1,230 even as investors withdrew funds from its only U.S.-listed spot ETF.
Solana (SOL) and Ether gained more than 3% each, reaching approximately $106 and $2,450, respectively. Dogecoin and XRP advanced between 2% and 3%, while BNB, Hyperliquid’s HYPE and Tron rose around 1%. Bitcoin also gained nearly 1%, according to CoinDesk data.
Despite the price recovery, cryptocurrency investment products continued to experience outflows. SoSoValue data showed that the U.S. spot Zcash ETF lost approximately $15 million on Thursday, marking its fifth day of withdrawals this month.
Ether funds recorded around $60 million in outflows, while Solana products lost nearly $10 million, extending their withdrawal streak to nine consecutive days. XRP investment funds also registered a modest net outflow.
Bitcoin ETFs attracted approximately $5 million in net inflows, a relatively small recovery following Wednesday’s $261 million in withdrawals.
A second consecutive day of positive flows into Bitcoin ETFs would provide another indication that investors are returning to the market and supporting BTC’s rebound from its brief fall below $80,000.
