Crypto edged higher with bitcoin near $114K and DOGE leading, while a CF Benchmarks model says BTC trades below fair value relative to money supply growth, a pattern that has preceded rallies.

Alphractal called Kospi's record high an incremental signal that bitcoin's bull run may be nearing an end.

**[LlamaRisk: Circle and Tether's Bug Bounty Programs Are Far From Sufficient]** According to a report by Jinse Finance, Circle and Tether are facing criticism from DeFi risk management firm LlamaRisk due to their "severely inadequate" bug bounty programs, with maximum rewards not even exceeding $10,000. On September 1, LlamaRisk released a report evaluating the bug bounty programs for crypto assets listed under the Aave V3 protocol. The report found that among the assets supplied by Aave, 33 assets (valued at $19.7 billion) had bug bounty programs deemed "sufficient." However, another 10 assets (valued at $19.2 billion) either lacked bug bounty programs entirely or had programs that were severely insufficient. LlamaRisk pointed out that despite Circle managing $70 billion in assets, its bug bounty program was "severely inadequate," offering only $5,000. Similarly, Tether, which manages $160 billion in assets, had a bug bounty program capped at just $10,000. Other assets with relatively low bug bounty amounts include BitGo's wrapped bitcoin, Gnosis, and Ripple. Meanwhile, Etherfi, Monerium, PayPal, and Agora were flagged as having no active bug bounty programs at all.

[Hong Kong Monetary Authority Releases Crypto Asset Regulatory Policy Manual] The Hong Kong Monetary Authority has issued a revised regulatory policy manual, clarifying the classification of crypto assets under the Basel capital rules. Starting from 2026, Hong Kong will adjust capital, disclosure, and risk exposure rules to implement the Basel framework. Crypto assets are divided into two groups: the first group includes tokens linked to traditional assets and compliant stablecoins; the second group consists of unsecured tokens and non-qualifying assets, which require full capitalization. Industry participants can submit their opinions by October 10.

[Greeks.live: Market Has Priced in Fed's September Rate Cut Expectations] Greeks.live macro researcher stated that the implied volatility in the options market has remained stable recently, indicating that the market has priced in the expectation of a 25-basis-point rate cut by the Federal Reserve in September. Block trading volume has risen significantly in recent times, with a high proportion of trades occurring within the current month, suggesting considerable short-term market divergence, though overall volatility expectations remain limited. Overall, the market is more optimistic about the outlook for the fourth quarter.