Bitcoin had its best quarter since Q4 2024 — and crypto lost $1.26B to hackers over the same period. MetaMask pulled ETH staking after a security incident. Citi just set a $113K target.
Thursday, October 1, 2026
Welcome to Q4. Bitcoin just closed its best quarter since Q4 2024 — up more than 40%. The flip side: crypto lost $1.26 billion to hackers over the same period, with September the worst month of 2026 by both count and dollar value. Citigroup raised its 12-month bitcoin target to $113,000 this morning. MetaMask pulled its ETH staking service overnight after block rewards were diverted to an unauthorized wallet. And the 30-year Treasury yield hit 5.67%, its highest since 2002. Stay alert.
Bitcoin had a monster quarter. So did crypto hackers
Crypto suffered 247 security incidents in Q3 with losses of $1.26 billion, per CertiK data, even as bitcoin gained more than 40% over the same period. September was the worst month of 2026 by both count and dollar value: 99 incidents and $768.5 million stolen, the most since February 2025. The insurance safety net is shrinking relative to risks — on-chain crypto insurance coverage capacity stood at $130.2 million as of August, down 20% year-over-year. AI is now accelerating the threat by automating the search for smart contract vulnerabilities, a process that once took skilled engineers months. Nansen senior analyst Nicolai Sondergaard noted that most institutional capital is arriving through regulated ETF wrappers and avoiding DeFi entirely, limiting contagion — but the reputational damage from persistent exploits can slow adoption and push regulators to act even when direct losses are contained.
MetaMask pulls Ethereum staking after a security incident diverts block rewards
MetaMask took its Ethereum staking infrastructure offline overnight after a security incident in which payments from producing blocks were diverted to an unauthorized wallet, according to a security researcher who identified the problem. Lido, which provides the underlying staking infrastructure, is warning affected users that they may have lost staking rewards as a result. No user funds held in wallets are reported to be at risk — the issue is confined to validator rewards. MetaMask's staking product allows users to stake ETH without leaving the wallet interface; the service is now suspended while the incident is investigated. The episode comes as the MetaMask parent company has been navigating regulatory scrutiny in several jurisdictions and adds to a string of Ethereum infrastructure security incidents over the past quarter.
Bitcoin kicks off Q4 in the same $82,000–$85,000 range it has held for weeks
Bitcoin is consolidating in the $82,000–$85,000 band as Q4 opens, the same range it occupied before the September 21 breakout and where it has since returned. Citigroup raised its 12-month price target to $113,000 this morning, forecasting around $5 billion in ETF inflows over the next year as wealth advisers and brokerages gradually increase allocations. On-chain data shows the $82,813 level — the former resistance that flipped to support on September 21 — continues to hold, which chart analysts say keeps the broader bull structure intact. The 30-year Treasury yield hit 5.67% overnight, its highest since 2002, which is weighing on sentiment at the open. Nonfarm payrolls data on Friday will be the next major macro catalyst, with a weak print likely to ease yield pressure and give bitcoin room to retest the $85,000–$87,000 resistance zone.
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