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Crypto News Today: Citi Sees $100T Stablecoin Potential, Google Bets on Cipher’s AI Shift, Kraken Secures $500M, Market Loses $150B
Overview:
Citi forecasts $100 trillion in payments via stablecoins by 2030, highlighting blockchain’s mainstream role in finance.
Google invests $1.4 billion in Cipher Mining’s AI pivot, while Kraken secures $500 million funding for a 2026 IPO.
Crypto market loses $150 billion as Bitcoin slips to $109,500, Ethereum below $4,000, and leveraged liquidations mount.
The cryptocurrency industry continues to evolve, with institutional forecasts, strategic investments, and major funding rounds reshaping the landscape. At the same time, macroeconomic uncertainty has triggered sharp volatility, wiping $150 billion off the market in a single day.
Citi Projects $100T in Stablecoin Payments by 2030
Citi has sharply upgraded its outlook for the stablecoin market, predicting that these digital tokens could power up to $100 trillion in annual payments by the end of the decade.
The bank noted that stablecoin issuance has already risen from $200 billion at the start of 2025 to $280 billion today, an acceleration that forced analysts to lift their long-term projections. Citi’s new baseline calls for $1.9 trillion in supply by 2030, with a bullish case extending to $4 trillion.
If stablecoins circulate at a velocity similar to traditional currencies, Citi estimates that transaction volumes could top $100 trillion annually, potentially doubling under optimistic assumptions.
However, the bank also emphasized that stablecoins may not dominate digital money alone. Corporate demand for bank-issued tokens and tokenized deposits could generate even greater volumes, supported by regulatory clarity and institutional safeguards.
Google Invests in Cipher Mining’s AI Pivot
Google has taken a 5.4% equity stake in Cipher Mining (CIFR), committing $1.4 billion in financial backstops to support the company’s strategic shift from Bitcoin mining to AI infrastructure.
The arrangement forms part of a 10-year hosting agreement between Cipher and AI cloud operator Fluidstack, valued at around $3 billion in contracted revenue.
Google’s role includes guaranteeing a portion of Fluidstack’s lease obligations, while receiving warrants to acquire 24 million Cipher shares in return.
Cipher will repurpose its Barber Lake facility in Texas, delivering 168 MW of IT load capacity initially, with room to expand toward 500 MW.
Kraken Raises $500M, Targets 2026 IPO
Crypto exchange Kraken has completed the largest funding round in its history, securing $500 million at a self-set valuation of $15 billion. The financing, finalized in September, marks the exchange’s first major raise since 2022.
According to reports, the round was self-led by Kraken but included participation from venture firms such as Tribe Capital. The exchange intends to use the funds to prepare for an IPO in 2026, smoothing operations ahead of its eventual public listing.
Kraken reported strong Q2 results earlier this year, posting $411 million in revenue and $80 million in earnings. It has expanded its market share, accounting for 68% of fiat-to-crypto transactions, up from 43% a year earlier.
USDC Treasury Burns 55M Tokens
In a routine supply adjustment, the USDC Treasury destroyed 55 million USDC on the Ethereum blockchain. Token burns are standard practice in stablecoin management, reducing circulating supply to help maintain parity and manage liquidity.
This move highlights the ongoing evolution of stablecoin governance as issuers balance supply with shifting demand in volatile markets.
Crypto Market Sheds $150B Amid Fear
The broader crypto market experienced a sharp downturn, erasing $150 billion in value in a single day as the total market cap dropped from $3.9 trillion to $3.75 trillion.
Bitcoin (BTC) fell to $109,500, losing 2.23% and shedding $20 billion in value.
Ethereum (ETH) slipped below $4,000 to $3,932, down 13.5% over the past week.
XRP broke below $2.80, while BNB tumbled to $949, off 5% in 24 hours.
Solana (SOL) dropped nearly 20% over the week to $196.
The sell-off coincided with concerns over the Federal Reserve’s latest policy moves. After cutting rates earlier in September, Chair Jerome Powell warned on September 24 that the labor market remains fragile and inflation risks persist. The warning reignited stagflation fears, pushing traders out of risk assets.
The situation worsened by $1.7 billion in leveraged liquidations, the largest wipe-out since December 2024, primarily from long positions. Bitcoin now tests support at $107,000, with $100,000 seen as the psychological threshold. Ethereum’s next key support sits at $3,750.
Also Read: Ethereum Price Prediction: How Fast Will ETH Hit $5,000?
ETF Outflows Add Pressure
Bitcoin Spot ETFs recorded net outflows of $258.5 million on September 25. Fidelity’s FBTC led withdrawals at $114.8 million, while BlackRock’s IBIT bucked the trend with an inflow of $79.7 million.
Overall, Bitcoin ETFs hold $144.35 billion in assets, with cumulative inflows of $57.23 billion. The divergence highlights investor caution even as institutional interest in BTC products remains historically strong.
Also Read: Bitcoin Price Today at $109,437: Can Bulls Defend the $108K Support?
FAQs:
1. Why did the crypto market fall by $150B?
Macro fears, Fed comments, and $1.7 billion in leveraged liquidations triggered a sharp sell-off.
2. What is Citi’s new stablecoin projection?
Citi now expects stablecoins to process $100 trillion in annual payments by 2030, up from earlier estimates.
3. Why did Google invest in Cipher Mining?
Google backed Cipher’s pivot into AI data centers, providing $1.4 billion in financial support and gaining equity.
4. How much funding did Kraken raise and why?
Kraken secured $500 million to prepare for its planned 2026 IPO, boosting growth and stability.
5. What happened with USDC?
USDC Treasury burned 55 million tokens on Ethereum, a supply adjustment to maintain stability and liquidity.
