Softer U.S. inflation pushed Bitcoin above $85.5K, while Standard Chartered forecast USDe supply at $40B and Base added new tokenized finance tools; today’s BTC is near $84.1K and remains in Greed sentiment. Bitcoin saw sharp volatility after the latest U.S. inflation data. The price briefly moved above $85,500 before giving back part of the gain and is now trading around $84,139.0. U.S. PCE inflation for August came in below market expectations and briefly supported risk assets. However, elevated Treasury yields limited Bitcoin’s ability to extend the breakout. Ether is trading near $2,700, with relatively limited intraday movement and a broadly range-bound structure. Performance across other major crypto assets was mixed. HYPE gained about 3%, while DOGE rose nearly 2%. BNB, TRX, and ZEC each gained less than 1%, while SOL fell nearly 1%. In the derivatives market, total liquidations over the past 24 hours reached about USD 267 million. Long and short liquidations were both around USD 134 million, showing that volatility affected leveraged positions on both sides. Coinglass data shows that if BTC falls below $79,629, cumulative long liquidation intensity across major centralized exchanges could reach about USD 1.863 billion. On the upside, around USD 1.673 billion in short liquidation intensity is concentrated near $87,799. Market sentiment also strengthened, with the Crypto Fear and Greed Index rising to 74 from 71 the day earlier and remaining in the Greed zone. Overall, softer inflation data improved risk appetite, while elevated Treasury yields continued to act as a counterweight. BTC has returned above $84K after retreating from $85,500, and markets remain focused on how the broader rate environment may affect crypto asset prices.

Source: Alternative

Key News Highlights:

Bitcoin Briefly Reached $85,500 as Elevated Treasury Yields Limit Gains

Bitcoin briefly moved above $85,500 after the latest U.S. PCE inflation data came in below market expectations. The price later gave back part of the gain as Treasury yields moved higher again. U.S. headline PCE inflation rose 3.4% year over year in August, while core PCE increased 3.0%. Both figures were below market expectations and prompted investors to reassess the Federal Reserve’s policy outlook. Treasury yields initially declined after the data, which helped lift Bitcoin and other risk assets. That move reversed soon afterward. The 10-year U.S. Treasury yield returned to around 5.28%, close to recent highs. The 30-year yield held near 5.62% after previously reaching its highest level since 2002. As long-term yields moved back up, Bitcoin failed to hold all of its gains above $85,000 and briefly fell toward $83,700. Early gains in major U.S. equity indexes also faded later in the session. Asian markets were firmer, with Nasdaq 100 and S&P 500 futures higher. Japan’s Nikkei and South Korea’s Kospi also advanced. Across major crypto assets, HYPE rose about 3% to around $89 and DOGE gained nearly 2%. ETH, BNB, TRX, and ZEC posted smaller gains, while SOL fell nearly 1%. The price action showed that crypto markets remained closely tied to shifts in global rates and broader risk flows during a period of rapid changes in inflation expectations and Treasury yields.

Standard Chartered Sees Ethena’s USDe Supply Reaching USD 40 Billion by 2028

Standard Chartered said in a new research report that Ethena’s USDe supply could reach USD 40 billion by the end of 2028. The bank noted that Ethena is gradually expanding its yield sources beyond traditional crypto basis trades. These new sources include DeFi, institutional lending, real-world assets, and basis strategies linked to equities and commodities. Together, these strategies currently generate a blended yield of about 5.2%. This reduces USDe’s reliance on the spread between spot crypto holdings and perpetual futures. Standard Chartered also expects the tokenized asset market to grow from about USD 350 billion today to USD 4 trillion by the end of 2028. That expansion could increase the range of assets available for related yield strategies. The report also highlighted Ethena’s recently approved fee mechanism. Under the framework, part of net business revenue will be directed toward ENA buybacks once USDe reaches specified supply thresholds. Ethena estimates that annual ENA buybacks could reach USD 375 million if USDe supply rises to USD 25 billion, assuming a 6% gross protocol yield and a 25% net revenue take rate. Standard Chartered initiated coverage of ENA in the same report and set a year-end 2028 price target of $2. Its long-term valuation framework is mainly based on USDe supply growth, broader yield diversification, expansion in tokenized assets, and the ENA buyback mechanism.

Base Completes Cobalt Upgrade With New Compliance and Conditional Transaction Tools

Ethereum Layer 2 network Base has activated its Cobalt upgrade, adding new compliance and transaction-control tools for tokenized assets. Cobalt is Base’s third major upgrade and expands the B20 token standard. One of the main changes allows issuers to apply multiple compliance checks to the same asset. An issuer can require recipients to complete identity verification, qualify as accredited investors, and pass sanctions screening before certain token transfers are allowed. The upgrade also supports corporate actions such as stock splits. Issuers can adjust the number of shares displayed in wallets and applications without minting or burning additional tokens. Cobalt also allows issuers to appoint authorized administrators who can transfer tokens under predefined asset rules and attach a public note to the action. The issuer decides whether to enable this function and who is allowed to use it. Base itself cannot initiate these transfers. Another major feature is Validity Transactions. This allows users to set on-chain conditions before a transaction becomes eligible for inclusion in a block. For example, a user can submit a swap that only becomes valid if an asset reaches a specified price before a set block deadline. The system then checks those conditions as new blocks are built. The Cobalt upgrade extends Base’s push into on-chain finance and tokenized assets. It adds more tools for issuance management, compliance checks, and conditional transaction execution on top of the existing B20 standard.

Petrobras Uses Cardano to Track Sustainable Aviation Fuel and Renewable Diesel Data

Brazilian state-controlled oil company Petrobras has developed two blockchain applications using Cardano to track sustainability data for sustainable aviation fuel and renewable diesel. The first application was developed with PUC-Rio’s Ledger Labs. It converts environmental attributes linked to sustainable aviation fuel into digital tokens to reduce the risk of the same environmental claim being used more than once. The system uses a Book-and-Claim model. This allows the environmental benefit of the fuel to be recorded separately from the location where the physical fuel is consumed. The benefit can then be assigned to an airline, company, or passenger. The tokens are known as CS-SAF and contain data aligned with the Carbon Offsetting and Reduction Scheme for International Aviation. Passengers can also use the application to receive a certificate linked to their journey and the related environmental claim. The second application creates digital checkpoints for Petrobras’ Diesel R renewable fuel. These checkpoints track different stages of production, transportation, and use. The data could also support Scope 3 emissions reporting by providing clearer records of indirect emissions across the value chain. The two applications are part of a broader research collaboration involving Petrobras and the Cardano ecosystem. The partnership began in 2023 with blockchain education for Petrobras employees and expanded into energy-sector research in 2025. No specific fuel volumes or broader deployment timeline have been disclosed so far. At this stage, the projects mainly focus on how blockchain can support traceable records for environmental attributes, fuel flows, and sustainability data.

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