Bitcoin Stalls Near $84,000 After Best Quarter Since 2024 as Illinois Agrees to Delay Crypto Tax

Bitcoin closed out its strongest quarter since 2024 on a cautious note, while a major US state moved to push back a first-of-its-kind tax on digital assets. Together, the two stories show how Washington data and state-level policy are shaping American crypto markets on October 1, 2026.

Bitcoin Ends a 40% Quarter Without Fresh Momentum

Bitcoin finished the third quarter up roughly 40%, outperforming every major asset class. Investors poured billions of dollars into exchange-traded funds tied to bitcoin and other tokens, and several altcoins rallied even harder.

The momentum cooled at the quarter's end. On Wednesday, a softer-than-expected US inflation report briefly pushed bitcoin just above $85,000. The move faded within hours, and the price settled near $83,550. On Thursday it was trading close to $84,000.

Why Treasury Yields Are Capping the Rally

The inflation report tracks the Federal Reserve's preferred price gauge, and its cooler reading reduced market bets on another rate hike. But long-term Treasury yields, now near their highest levels in more than two decades, kept pressure on risk assets. Stronger hiring data also weighed on the mood.

Traders are now looking ahead to Friday's US employment report. Many see $85,000 as the immediate level for bitcoin to reclaim. A firm break above it would signal that the post-inflation optimism has real follow-through.

Illinois Pauses the Nation's First State-Level Crypto Tax

In Springfield, the story is about regulation rather than price. Illinois signed a 0.2% tax on digital asset business activity into law in June, targeting firms with more than $100,000 in gross receipts. It was the first state measure of its kind, and it was scheduled to start on January 1, 2027.

Industry groups, including the Digital Chamber and the Illinois Blockchain Association, negotiated a six-month delay with state officials. If the court approves the agreement, the tax will move to July 1, 2027. A joint request was expected to be filed in the Sangamon County circuit court on Thursday.

The delay does not end the dispute. Industry groups argue the tax is unconstitutional, and separate legal challenges, including a preliminary injunction motion filed on September 9, remain in progress. State regulators have also published draft rules, with public comments open through October 30.

What It Means for US Investors

For market participants, the picture is mixed. Bitcoin's direction in the near term depends less on crypto-specific news than on inflation data, Federal Reserve expectations, and bond yields. At the same time, the Illinois case is a test of whether individual states can build their own crypto tax regimes. Other states are likely to watch the outcome closely.