Cryptocurrency markets extended their recovery after Bitcoin briefly dropped below $80,000, although investment products tracking Ether, Solana and Zcash continued to experience net withdrawals.

Strive Expands SATS Offering to Generate $630 Million

Strive (ASST), a publicly traded Bitcoin treasury company, increased the size of its SATS preferred stock offering from 5 million shares to 7 million shares.

Priced at $90 per share, the expanded sale is expected to bring in $630 million in gross proceeds. SATS offers a 15% dividend rate, equivalent to an effective yield of approximately 16.67% based on the offering price.

Strategy Sets November 1 as Proposed Start for Daily STRC Dividends

Strategy, led by Michael Saylor, has outlined plans to transition its high-yield preferred stock STRC from monthly dividend payments to daily distributions beginning November 1.

The change depends on shareholder approval, with the voting process underway and results expected on October 28. The proposed start date will stand only if shareholders approve the new payment arrangement.

STRC has recovered from the sharp decline recorded earlier in the summer but remains slightly below its $100 par value. The stock closed at $99.53 on Thursday, limiting Strategy’s ability to raise additional funds for Bitcoin acquisitions by issuing shares at par.

Warsh Keeps October Rate Decision Open as Hike Expectations Fall

Federal Reserve Chair Kevin Warsh avoided signaling 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 does not announce his policy decisions ahead of the meetings where they are considered. He also described the current period as a new chapter for the Federal Reserve.

Warsh defended the September rate increase, arguing that it was necessary to bring inflation under control.

He identified the artificial intelligence boom as the most consequential development currently affecting the global economy and warned that increased investment could add to inflationary pressures. Although AI is expected to generate productivity improvements, he cautioned that the transition could be uneven.

U.S. Treasury yields moved higher, with the 10-year yield increasing 2.9 basis points to 5.12% from the previous close.

At the same time, market-implied expectations for an October rate hike declined sharply. The probability of an increase fell to 15%, compared with nearly 45% immediately after Wednesday’s hotter-than-expected inflation report.

Binance Executive Says Crypto Decline Reflects Market Sentiment

Catherine Chen, Binance’s head of institutional, described the latest crypto sell-off following the U.S. inflation report as a temporary reaction to market sentiment rather than evidence of a fundamental breakdown.

“The CPI-driven selloff is a sentiment shock, not a structural break,” Chen said, referring to the Consumer Price Index, a measure of changes in consumer prices.

She expects inflation to peak around October, with more noticeable signs of cooling potentially emerging by March 2027. Chen suggested that easing energy prices and slower inflation could eventually create more supportive conditions for cryptocurrency markets.

“A difficult trading day does not determine the outlook for the next several months,” she added, indicating that relief for the market could be approaching.

Zcash Gains 11% as Its ETF Continues to Lose Funds

Bitcoin climbed back above $82,000 on Friday after briefly trading below $80,000 during Thursday’s session. Zcash (ZEC) led the recovery, advancing 11% to approximately $1,230 despite continued withdrawals from its only U.S.-listed spot exchange-traded fund.

Solana (SOL) and Ether rose more than 3% each, reaching around $106 and $2,450, respectively. Dogecoin and XRP gained between 2% and 3%, while BNB, Hyperliquid’s HYPE and Tron advanced by roughly 1%. Bitcoin itself added nearly 1%, according to CoinDesk data.

However, stronger token prices did not translate into positive flows across most crypto investment funds. Data from SoSoValue showed that the U.S. spot Zcash ETF recorded approximately $15 million in outflows on Thursday, marking its fifth withdrawal day this month.

Ether funds experienced around $60 million in withdrawals, while Solana investment products lost nearly $10 million. The latter marked the ninth consecutive day of outflows for Solana funds. XRP products also recorded a small net withdrawal.

Bitcoin ETFs attracted approximately $5 million in net inflows, a modest improvement following Wednesday’s $261 million outflow.

Another consecutive day of net inflows into Bitcoin ETFs would offer further evidence that investment demand is returning and helping support BTC’s recovery after its brief decline below $80,000.