Bitcoin peaks at $126,000, dips to $121,171; Ethereum falls 3.8% amid Coinbase DEX launch and DeFi regulation proposals
The second week of October in the virtual asset market saw a period of consolidation after Bitcoin set a new all-time high, followed by a short-term correction. Bitcoin fell 0.9% from the previous week to $121,171, while Ethereum dropped 3.8% to $4,344. In the altcoin market, Zcash (ZEC), Mantle (MNT), and Binance Coin (BNB) showed strength, with buying activity concentrated in specific tokens.
Bitcoin surpassed $126,000 early in the week, marking a new all-time high. This was driven by heightened expectations of interest rate cuts amid concerns over a potential U.S. government shutdown, which boosted risk-on sentiment across markets. While short-term profit-taking halted the upward momentum, prices have remained stable near the highs. Despite adjustments in overbought conditions, investor sentiment has not significantly weakened, and high trading volumes persist across major asset classes.
◇ Coinbase Fully Opens Decentralized Exchange (DEX) Feature in the U.S.
Coinbase, the largest U.S. virtual asset exchange, has fully opened its decentralized exchange (DEX) feature to users in the United States. This move allows Coinbase users to trade new tokens before they are listed on centralized exchanges, with transaction fees set at a low fixed rate and gas fees fully covered by Coinbase. This is seen as a major step in expanding retail investors’ access to on-chain asset trading in the U.S.
The feature operates on Base, an Ethereum Layer 2 network developed by Coinbase, with plans to gradually expand supported regions and networks. Coinbase aims to provide a secure and user-friendly trading experience while allowing users to retain control over their assets.
The official launch marks a pivotal shift for Coinbase, moving beyond its centralized exchange (CEX) model toward becoming an on-chain trading platform. Industry observers view this as a structural change in global trading markets, interpreting Coinbase’s move as an effort to lead the emerging era of on-chain financial infrastructure by bridging centralized and decentralized systems.
◇ U.S. Senate Democrats Propose DeFi Regulation Draft…”De Facto Ban on Virtual Assets”
Democratic members of the U.S. Senate Committee on Banking have proposed a new bill to regulate decentralized finance (DeFi). As the blockchain industry expands and intersects more with traditional finance, the measure aims to prevent illegal money laundering and financial crimes. However, the industry has strongly opposed the proposal, calling it a denial of DeFi’s fundamental operational principles.
According to a draft obtained by Politico, the proposal grants the U.S. Treasury and financial regulators the authority to determine whether a DeFi protocol is “sufficiently decentralized” and defines protocol designers, operators, frontend providers, or beneficiaries as “intermediaries.” The Treasury will also define who exercises “control over the system,” and projects meeting these criteria will face the same regulations as traditional financial institutions.
Though the draft has not yet entered formal legislative proceedings, it could become a turning point for regulating the broader on-chain financial ecosystem, including DeFi, if Senate discussions advance. Key issues include jurisdictional coordination between the SEC and CFTC, the legal definition of digital assets, and the regulatory scope of decentralized projects. Experts assess that this debate will test how the U.S. integrates DeFi into its traditional financial system, beyond mere regulatory tightening.
Xangle researcher Hwang Hyo-jun analyzed, “Bitcoin’s all-time high reflects ongoing policy expectations and liquidity support for the market. However, short-term price volatility may increase depending on upcoming employment and inflation data, as well as the FOMC’s decisions, so investors should exercise caution.”
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CrossAngle provides essential operational solutions based on on-chain data and builds trust-based communities for companies and foundations adopting Web3. It operates the crypto data intelligence platform Xangle, and the Xangle Research Team creates content to showcase trends in the virtual asset investment industry based on global virtual asset information and data.
