Digital asset market update — 7 September 2026
Reporting the 24 hours to 06:00 Europe/London · 306 words · Prepared by 01 Capital
The digital asset landscape over the past 24 hours saw significant security breaches and notable capital flows. The Liquid Network, a Bitcoin settlement layer utilized by various exchanges, was impacted by a security exploit resulting in the theft of $320 million worth of Bitcoin. Following the incident, Liquid Network halted all transactions, and exchanges suspended deposits and withdrawals of Liquid Bitcoin (LBTC) as Blockstream engaged with the purported ‘white-hat’ hackers (CoinDesk, Bloomberg, The Block). This event highlights ongoing security risks within the digital asset ecosystem. Separately, spot Bitcoin Exchange-Traded Funds (ETFs) experienced robust inflows, pulling in $987 million last week and recording $3.52 billion in net inflows for August. This marks their largest monthly positive flows since September 2025, indicating recovering institutional demand (The Block).
In other developments, Harmony, a Layer 1 blockchain, announced plans to sunset its mainnet and proposed a token migration to Ethereum as part of a new initiative focused on AI video creation (The Block). Router Protocol, a Coinbase-backed project, is slated to shut down and burn 303 million ROUTE tokens after failing to establish a sustainable business model through commercialization or acquisition attempts (The Block). Furthermore, Better Mortgage and Coinbase introduced Bitcoin-backed mortgages that permit the reuse of pledged Bitcoin collateral, with borrowers unable to recover their crypto until the primary mortgage is fully repaid or refinanced (CoinDesk).
Meanwhile, prediction markets are moving closer to the U.S. Supreme Court, as New Jersey petitioned for a writ of certiorari in Kalshi’s case against the state (CoinDesk). Geopolitical tensions also impacted the market, with Bitcoin trading nearly 1% lower following escalating U.S.-Iran hostilities that pushed oil prices higher (CoinDesk). Ukrainian police reportedly dismantled a crypto scam that had been stealing up to $1 million monthly (CoinDesk).
Institutional participants will likely monitor the ongoing investigation and recovery efforts related to the Liquid Network exploit.
How 01 Capital reads this
01 Capital is a research and intelligence firm specialising in the structures, behaviours and economics unique to digital assets. We provide valuation intelligence, tokenisation, transaction support and strategic and board advisory to institutions, asset managers, corporate treasuries and advisers.
Sources
- CoinDesk — Bitcoin network used by exchanges hit by $320 million exploit. Hackers claim they're the 'good guys'
- Bloomberg — Bitcoin Network Says $320 Million Stolen in Latest Crypto Hack
- The Block — Liquid Network pauses after purported ‘white-hat’ hackers withdraw $320 million in bitcoin
- The Block — Spot bitcoin ETFs pull in $987 million last week as institutional demand recovers
- The Block — Harmony to fully sunset Layer 1, proposes token migration to Ethereum for AI video initiative
- The Block — Coinbase-backed Router Protocol to shut down, burn 303 million ROUTE tokens
- CoinDesk — Better and Coinbase’s bitcoin-backed mortgages can reuse borrowers’ collateral
- CoinDesk — Prediction markets inch closer to the Supreme Court: State of Crypto
- CoinDesk — Oil up, bitcoin down as U.S. strikes Iranian crude carriers
- CoinDesk — Ukrainian police took down a crypto scam that stole up to $1 million a month
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This market update is provided for information only. It is not investment, legal or regulatory advice. 01 Capital is not authorised or regulated by the Financial Conduct Authority.