Crypto Currents: Bitcoin surges as cryptocurrency market cap tops $4T

The crypto market is kicking off fourth quarter with a powerful rally, as bitcoin blasts past $116,000, lifting the total digital asset market cap above $4T for the first time. The surge comes as Strategy is once again eligible for inclusion in the S&P 500, while corporate treasuries continue to swell with bitcoin and other digital assets. Meanwhile, regulators are taking steps to broaden crypto custody rules, and institutional products from CME Group and Coinbase are hitting major milestones. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

‘UPTOBER’ RALLY LIFTS MARKET: The crypto market is living up to its “Uptober” moniker, with bitcoin (BTC-USD) surging past $116,000 on Wednesday to propel the total market cap of all cryptocurrencies over the $4T mark. According to Decrypt, the rally wiped out roughly $60M in short positions and pushed bitcoin’s year-to-date gains to 25%. The broad market rally also lifted altcoins, with dogecoin (DOGE-USD) gaining over 6% as institutional flows provided liquidity, CoinDesk reports. Analysts told Decrypt the bullish momentum is fueled by a combination of sustained demand for spot crypto ETFs, a dovish stance from the Federal Reserve, and a historically strong fourth quarter for digital assets.

STRATEGY EYES S&P 500 INCLUSION ONCE MORE: Bitcoin treasury pioneer Strategy (MSTR) will again qualify for potential inclusion in the S&P 500 after posting a profitable third quarter. According to analysis cited by CoinDesk, the company is estimated to have earned about $2.9B as the price of bitcoin rose during the quarter. This marks the second consecutive profitable quarter for the firm, satisfying a key requirement for consideration by the index committee. While there is no guarantee of inclusion, an addition would be a landmark moment, making Strategy the first bitcoin-focused treasury company to join the benchmark index. The S&P 500’s next rebalancing is scheduled for December 19.

CORPORATE TREASURIES CONTINUE THEIR EXPANSION: Japanese investment firm Metaplanet (MTPLF) has become the fourth-largest corporate bitcoin holder after acquiring an additional 5,268 BTC for approximately $600M, bringing its total holdings to 30,823 BTC, Cointelegraph reports. The total value of bitcoin held by public companies now exceeds $116B, accounting for about 4.7% of the asset’s total supply. Altcoins are also gaining traction in digital asset treasuries, with VisionSys AI (VSA) unveiling a $2B treasury plan focused on solana (SOL-USD), according to CoinDesk. However, some industry leaders are urging caution. In an interview with The Block, Bit Digital (BTBT) CEO Sam Tabar warned that using secured debt to finance crypto purchases could “destroy” treasury firms in a bear market, advocating for unsecured financing instead.

INSTITUTIONAL PRODUCTS MATURE: Wall Street’s adoption of digital assets continues to deepen with growing demand for regulated products. According to CoinDesk, institutional investors are rapidly embracing new futures contracts for solana and XRP (XRP-USD) on the CME Group (CME) platform. Solana futures reached $1B in open interest in just five months, a milestone that took ether (ETH-USD) eight months and bitcoin three years to achieve. Meanwhile, Coinbase (COIN) has originated over $1B in on-chain loans backed by bitcoin via DeFi protocol Morpho, The Block reports. In other news, Cointelegraph reports that European asset manager CoinShares is acquiring Bastion Asset Management to expand into actively managed crypto ETFs in the U.S.. Additionally, stablecoin issuer Tether plans to partner with video platform Rumble (RUM) to distribute its new stablecoin, USAT, according to crypto.news.

MINER STOCKS AND REGULATORY SHIFTS: The market cap for 14 U.S.-listed bitcoin miners surpassed $50B for the first time in September despite a drop in revenue, a JPMorgan report highlighted by CoinDesk shows. The report noted strong stock performance from firms like Cipher Mining (CIFR), IREN (IREN), and Bitfarms (BITF), while Cango (CANG) underperformed. On the regulatory front, the SEC took a preliminary step to expand the universe of qualified crypto custodians to include state-chartered trusts, a move that could benefit crypto-native firms. In Washington, the White House withdrew the nomination of Brian Quintenz to chair the CFTC, CoinDesk also reported.

PRICE ACTION: As of time of writing, bitcoin (BTC-USD) was trading at $117,428.42, while ether (ETH-USD) was trading at $4,342.36, according to price data from CoinDesk.