Crypto Market Update: September 05, 2025

A professional observes cryptocurrency charts on a digital screen, next to the title 'Crypto Market Update' from Klever.

August was a month of pressure for Bitcoin (BTC), which dropped 6.5% and fell back below $110,000.

This marked one of the worst monthly performances of 2024, amid reduced liquidity, macroeconomic uncertainty, and expectations surrounding the Federal Reserve’s (Fed) next decisions.

However, September began with signs of relief: BTC regained the $110,000 level, briefly touched $112,300 in a weekly high, and sparked a positive move among altcoins such as Ethereum, Solana, and Dogecoin.

At the same time, external factors — including U.S. employment data, multi-billion inflows into crypto funds, and the launch of the controversial World Liberty (WLFI) — reignited investor attention.

This volatile backdrop puts Bitcoin back in the spotlight once again, underscoring the importance of tracking not only U.S. monetary policy but also the new catalysts shaping the crypto market in September.

Find out everything that happened this week below.

Bitcoin Drops 6.5% in August and Closes Below $110K. September Starts With Signs of Recovery

Bitcoin price chart for August 2025, falling from $118.43K to $108.79K after volatile month

Source: CoinMarketCap

The price of Bitcoin (BTC) ended August with a 6.5% drop, marking one of the worst monthly performances of 2024. The world’s largest cryptocurrency fell back below $110,000, with investors now focused on upcoming US economic data and the Federal Reserve’s (Fed) decisions.

Throughout August, Bitcoin faced strong liquidity pressure and macroeconomic uncertainty, leading to significant losses.

At the start of September, however, there were signs of recovery in the crypto market. Bitcoin (BTC) climbed back above the $110,000 level, posting a daily gain of nearly +1% and trading around $110,300. In the following days, the leading cryptocurrency reached a weekly high near $112,300, driven by increased trading volumes, especially in European markets.

This movement signals a gradual rebound in investor sentiment, with Bitcoin once again being viewed as a hedge against global economic uncertainty. According to data from Reuters, the asset posted gains of more than +1.3% in the past 24 hours, reinforcing its leadership role over the broader crypto market.

This volatility reflects both internal crypto market dynamics and global expectations around US monetary policy.

The Role of the Federal Reserve

Bitcoin’s trajectory remains closely tied to the actions of the Federal Reserve. Currently, the US central bank faces a dilemma:

  • Cutting rates too early could reignite persistent inflation.
  • Keeping rates high for too long could weaken the labor market and increase the risk of recession.

According to Kurt S. Altrichter, founder of Ivory Hill Wealth Advisory, this uncertainty will be a central focus for investors in September.

Key Economic Indicators to Watch

The crypto market is keeping a close eye on three important data releases in the coming days:

  • Initial jobless claims in the US
  • Revised productivity and unit labor costs
  • August employment report (Payroll)

These numbers could reshape expectations for the Fed’s next moves and, consequently, directly impact the price of Bitcoin and other cryptocurrencies.

Altcoins and Technical Sentiment: Ethereum, Solana, and Dogecoin Stand Out

Illustration of Ethereum, Solana, and Dogecoin rising with green arrows and a background chart indicating the appreciation of cryptocurrencies.

Source: Cointimes

September began with a strong performance for altcoins. In addition to Bitcoin, Ethereum (ETH) gained +2.1%, trading at around $4,367.

Among the leading altcoins, XRP rose +3.5%, Solana (SOL) surged +6.6%, and Dogecoin (DOGE) advanced +4.7%, reflecting a positive technical sentiment in the crypto market.

However, after this initial boost, the market went through a natural correction on September 4. Ethereum slipped about 1.7%, trading near $4,401, while XRP, Solana, and Dogecoin also posted small intraday pullbacks, signaling profit-taking by short-term investors.

From a technical perspective, analysts highlight that altcoins remain in a consolidation trend, waiting for new catalysts — such as US employment data and potential interest rate cuts — to resume upward momentum. 

This backdrop keeps Ethereum, Solana, and Dogecoin on the radar of traders and investors seeking opportunities in assets with higher volatility and short-term growth potential.

Crypto Funds Record $2.5B in Inflows, with Ethereum Leading Ahead of Bitcoin

Crypto funds attracted $2.48 billion in new inflows last week, reversing recent outflows and consolidating August as a positive month for the sector. The spotlight was on Ethereum (ETH), which outpaced Bitcoin (BTC) in capital inflows, highlighting the strength of ETH ETFs in the global market.

Crypto Fund Inflows for the Week

According to CoinShares data, crypto fund inflows totaled $2.48 billion during the analyzed week.

  • Ethereum (ETH) received $1.4 billion in inflows.
  • Bitcoin (BTC) saw $748 million, trailing its rival.

This marks a turning point, as BTC has traditionally dominated institutional inflows.

August and 2025 Year-to-Date

  • In August 2025, net inflows reached $4.37 billion.
  • Year-to-date, the total stands at $35.5 billion.
  • Despite these inflows, assets under management (AUM) fell about 10% to $219 billion, reflecting the correction in cryptocurrency prices.

Ethereum ETFs Outperform Bitcoin ETFs

In the United States, where spot ETFs are closely monitored:

  • Ethereum ETFs attracted $1.08 billion.
  • Bitcoin ETFs brought in $440.8 million.

This trend suggests stronger institutional appetite for ETH, particularly following regulatory and technical advancements on the network.

Global Overview: US Leads the Way

Inflows were distributed unevenly across markets:

  • United States: $2.29 billion
  • Switzerland: $109.4 million
  • Germany: $69.9 million
  • Canada: $41.1 million
  • Brazil: $1.6 million (despite $14.7 million in monthly outflows)
  • Sweden: -$45.2 million (net outflows)

Impact of Macroeconomic Data

Profit-taking recorded on Friday was triggered by US PCE inflation data, which reduced bets on a Federal Reserve (Fed) rate cut in September.

According to James Butterfill of CoinShares, the one-off outflow does not signal a negative trend but rather a correction following recent gains.

World Liberty (WLFI): Everything About This Week’s Controversial Launch

Golden World Liberty logo on a background of stacked coins and market chart, representing the new WLFI token.

Source: Cripto Fácil

The World Liberty (WLFI) token officially debuted in the crypto market on September 1, 2025, and quickly became one of the most talked-about topics of the week. The asset drew attention both for the scale of its launch and the controversies that followed.

WLFI Launch: Billion-Dollar Market Cap and Initial Hype

  • WLFI began trading with a market capitalization close to $7 billion, immediately entering the ranking of the world’s top 50 cryptocurrencies.
  • The debut was backed by strong marketing campaigns and broad coverage from global financial media.
  • The project’s structure is detailed in the “Gold Paper,” which describes WLFI as a governance token of the World Liberty Financial platform, incorporated in Delaware as a non-stock corporation.

Trump Family’s Involvement in the Project

  • Investigations revealed that members of the Trump family hold approximately 22.5 billion WLFI tokens.
  • This participation boosted the political and media visibility of the launch but also sparked debates about governance and token concentration.

Controversy: Justin Sun’s Tokens Frozen

  • Just days after the launch, World Liberty froze about 595 million WLFI tokens (valued at more than $100 million) belonging to entrepreneur Justin Sun.
  • Sun claimed the tokens were “unreasonably frozen,” raising concerns about centralization risks.
  • The news drove WLFI’s price down, which had already been experiencing heavy volatility since its debut.

World Liberty (WLFI) captured global attention with its billion-dollar market cap, high-profile exchange listings, and strong political ties. However, the controversies surrounding governance and the freezing of tokens have already cast doubt on the project’s decentralization.

For investors, WLFI represents both a speculative opportunity and a warning sign about regulatory and centralization risks in the crypto market.

US Regulation — SEC and CFTC Advance Strategic Changes for Cryptocurrencies

Early September 2025 brought major announcements that could redefine the future of crypto regulation in the United States.

SEC Unveils Regulatory Agenda Focused on Digital Assets

On September 4, the SEC (Securities and Exchange Commission) released its new agenda, featuring measures aimed at providing greater regulatory clarity for cryptocurrencies and digital assets. Key points include:

  • Discussion of safe harbors (regulatory protection zones) for blockchain projects under development.
  • Possibility of allowing cryptocurrencies to trade on traditional stock exchanges and alternative trading systems (ATS).
  • Lower compliance costs for companies, while maintaining transparency and investor protection.

This could represent a decisive step toward integrating crypto assets into the conventional financial system, broadening access for both institutional and retail investors.

Historic SEC–CFTC Cooperation

Two days earlier, on September 2, the SEC and the CFTC (Commodity Futures Trading Commission) announced a joint initiative to regulate the crypto market.

The initial focus will be on spot transactions of digital commodities involving margin, leverage, or financing — a segment that has so far been marked by regulatory uncertainty.

With this framework, registered exchanges will be able to legally and transparently offer these products, reducing risks and strengthening market confidence.

Impact of Regulation on the Crypto Market

These changes bring three main effects:

  • Greater legal certainty for blockchain projects, exchanges, and investors.
  • Integration with Wall Street, allowing cryptocurrencies to be traded on traditional platforms.
  • Attraction of institutional capital, thanks to clearer regulations and lower risks of future penalties.

Experts highlight that the joint move by the SEC and CFTC is part of the so-called “Project Crypto”, an effort to align technological innovation with the US regulatory system — potentially positioning the country as a global leader in the sector.

Stablecoins and Legislation: Genius Act Creates a New Regulatory Framework in the US

Table with the largest stablecoins in 2025, highlighting Tether (USDT) with US$167.18B, USDC with US$68.07B, and others such as USDe, DAI, and PYUSD.

The approval of the Genius Act in July 2025 marked a turning point for the stablecoin market in the United States. For the first time, there is a clear federal regulatory framework that sets strict rules on issuance, backing, and transparency.

Key Rules of the Genius Act

  • Full 1:1 backing: Stablecoins must be fully backed by US dollars or low-risk liquid assets.
  • Audits and transparency: Issuers are required to publish monthly reserve reports, with independent audits.
  • Ban on interest payments: Stablecoins cannot provide yield to holders, reinforcing their role as a means of payment.
  • Regulatory oversight: Only banks and authorized financial institutions can issue stablecoins in the US.

These measures increase legal certainty and strengthen institutional trust. Not surprisingly, companies like JPMorgan, Visa, and Mastercard are already exploring new integrations to accelerate digital payments and reduce operational costs.

Optimistic Projections for the Stablecoin Market

According to recent analyses, the sector is expected to surpass $400 billion in market value by the end of 2025 and approach $2 trillion by 2028. This growth will be driven by both institutional adoption and the rising use of stablecoins in cross-border payments, remittances, and banking integrations.

What Changes for Investors and Businesses

  • Investors gain stronger regulatory protection and clearer risk guidelines.
  • Banks and fintechs can safely integrate stablecoins into payment solutions under a regulated framework.
  • Global markets move closer to a standardized model, enhancing competitiveness against the European MiCA framework.

US Jobs Report: Direct Impact on Bitcoin and Cryptocurrencies

The crypto market is closely watching the US jobs report (NFP), released this Friday (5), as one of the key macroeconomic catalysts for September.

  • Expectations point to a slowdown in the labor market, with projections of up to 75,000 new jobs and an unemployment rate near 4.3%.
  • If the numbers confirm a weaker scenario, the chances of a Federal Reserve rate cut increase, boosting risk appetite and driving assets like Bitcoin (BTC) and Ethereum (ETH) higher.
  • If the data surprises to the upside, the dollar may strengthen, putting short-term pressure on cryptocurrencies.

This report is crucial because it sets expectations for the upcoming FOMC meeting in mid-September and could dictate the short-term trend of the crypto market.

Remittix (RTX): The New PayFi Altcoin With 100x Potential

While investors keep an eye on macroeconomic data, the altcoin Remittix (RTX) is drawing attention for its DeFi-based approach to international payments.

  • The cryptocurrency has already raised more than $23 million in its presale, selling over 630 million tokens.
  • It is confirmed for listings on exchanges such as BitMart and LBank, boosting liquidity and visibility.
  • Its roadmap includes the launch of a multi-currency wallet in 2025, with support for 40+ cryptocurrencies, 30+ fiat currencies, and real-time conversions.

Analysts highlight RTX as one of the most promising projects of 2025, with growth potential estimated between 40x and 100x, surpassing traditional altcoins like XRP and ADA.

The key differentiator of Remittix lies in its ability to provide efficiency in international remittances, combining the practicality of cryptocurrencies with the real-world demand for faster and cheaper payments.