The excitement around ‘Uptober,’ a historically bullish month for crypto, is fading as the market retreats, sparking a shift in social media chatter towards terms like ‘Selltober’ and ‘Octobear.’ Analytics platform Santiment noted that optimistic sentiment has dropped since the start of October, as traders now face a more bearish outlook. Despite this, some experts suggest there is still potential for a short-term rebound.
Bitcoin has slightly recovered after briefly dipping below $60,000 on 3 October, but overall market conditions remain shaky. The crypto market has shed $200 billion in total value since the start of the month, with technical indicators suggesting overextended rallies and sell-offs driving prices down. Historically, Bitcoin has performed well in October, often seeing gains mid-month, leaving some hoping the pattern will repeat despite current bearish trends.
Bitcoin’s price has fallen for four consecutive days, hitting $60,200, 8% below its peak last week. The decline coincided with a broader risk-off sentiment among investors, spurred by rising geopolitical tensions following Israel’s response to recent attacks. Stock indices such as the Dow Jones and Nasdaq also saw sell-offs, while bond yields and the US dollar index climbed.
Adding to the pressure, large Bitcoin holders like Ceffu sold substantial portions of their assets, accelerating the price drop. Social media buzz around Bitcoin has also contributed to the decline, according to Santiment, with enthusiasm often leading to short-term price reversals. The crypto fear and greed index fell to 39 from last week’s 60, reflecting a shift in market sentiment.
Despite the recent downturn, October and November are traditionally strong months for Bitcoin, offering hope of a rebound. The coin remains above key technical levels, including its 50-day and 200-day moving averages, and has formed a bullish inverse head and shoulders pattern, suggesting a possible recovery ahead.
Binance, the world’s leading cryptocurrency exchange, has secured regulatory approval in Argentina, marking its official entry into the country’s market. By registering with Argentina’s National Securities Commission, Binance can now offer its full range of crypto services to local users, providing access to various digital currencies.
This approval is part of Binance’s broader strategy to expand into regions with strong potential for crypto adoption, such as Latin America. The company’s web and mobile applications are now available throughout Argentina, enabling users to trade, buy, and sell cryptocurrencies like Bitcoin and Ethereum.
Despite legal challenges faced by its former CEO in the US, Binance continues to prioritise global expansion. Recent regulatory successes in India, Kazakhstan, and Indonesia have further solidified its presence worldwide.
Musicians worldwide are increasingly turning to platforms like Wavlake and Fountain, where they can earn Bitcoin in the form of satoshis for streaming their songs. Artists like Ainsley Costello and Joe Martin have reported making more from these platforms than from traditional DSPs like Spotify, where payments are typically low. For example, Costello earned over $13,000 in bitcoin in one year through Wavlake, compared to just $750 in five years on traditional streaming platforms.
These platforms operate under a Value for Value model, allowing listeners to tip artists directly with satoshis, creating a stronger connection between fans and musicians. With the introduction of the “zap” feature, fans can send micropayments quickly, bypassing the complexity of other systems. Nostr, a decentralised social media protocol, is also gaining popularity among musicians, helping them share their work more effectively and engage with their community.
As these new platforms grow, many artists believe they offer a fairer and more profitable alternative to traditional music industry practices. Musicians like Joe Martin encourage others to join platforms like Wavlake and Nostr to take control of their careers and foster more direct relationships with their fans.
Ohio Senator Niraj Antani has introduced a bill to allow residents to pay their state and local taxes using cryptocurrencies such as Bitcoin. Announced at the end of September, the proposal aims to push Ohio into the digital age by embracing cryptocurrencies for government transactions, giving taxpayers a modern option to settle their obligations. Senator Antani emphasised the importance of keeping the state’s economy innovative, stating that cryptocurrencies represent both the present and the future.
The new proposal follows a similar attempt in 2018, which was short-lived due to bureaucratic issues. Antani’s bill is designed to avoid the hurdles that caused the previous initiative to fail. By explicitly mandating the acceptance of crypto payments for taxes, the legislation seeks to establish Ohio as a leader in crypto integration for public services. The bill also proposes allowing state universities and pension funds to invest in digital assets, offering more financial flexibility.
However, concerns have emerged about potential privacy risks, with critics arguing that the move could expose taxpayers’ crypto transactions to government scrutiny. The bill is currently awaiting committee assignment and must navigate the legislative process before being enacted. If successful, Ohio would follow in the footsteps of states like Colorado, which introduced a similar programme in 2022.
Bitcoin exchange-traded funds (ETFs) saw a huge influx of liquidity this week, with inflows surpassing $1 billion for the first time since July. The cumulative net inflows across the 12 ETFs have reached a record $18.8 billion. ARK 21Shares and Fidelity led the charge, bringing in the highest figures.
Bitcoin’s price surged past the $65,000 resistance level, sparking a wave of buying driven by fear of missing out (FOMO). Analysts are predicting a significant rally in the final quarter, with some suggesting Bitcoin could push beyond $70,000 and potentially reach new all-time highs sooner than anticipated.
A sharp rise in stablecoin minting and global liquidity injections bolsters market optimism. Some analysts even forecast that Bitcoin could hit $124,000 by the end of 2024, as investor interest continues to climb.
Former Chinese finance minister Lou Jiwei has raised concerns about cryptocurrency’s potential to destabilise the global financial system during a speech at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing. Lou pointed out the risks associated with the volatility of crypto assets, particularly their role in money laundering and threats to anti-terrorism financing efforts. His comments come as cryptocurrencies continue to attract attention for their potential to impact financial stability.
Lou highlighted the US’s recent policy shift towards crypto, particularly the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). He urged Chinese policymakers to take note of these global developments and adapt strategies accordingly, stressing that understanding international trends is key to China’s digital economic progress.
Despite China’s 2021 ban on Bitcoin mining and trading, Lou noted that the country still dominates the Bitcoin mining space, controlling over 55% of the global BTC network. However, this stronghold is starting to wane, with US-based mining pools now managing about 40% of global Bitcoin mining operations.
Gary Gensler, chair of the US Securities and Exchange Commission (SEC), reaffirmed the agency’s position on Bitcoin, stating it is not a security but rather a non-security commodity. In an interview with CNBC, Gensler highlighted that the SEC has approved around 10 spot Bitcoin exchange-traded funds (ETFs) and has embraced Bitcoin on major exchanges like Nasdaq. It underscores the regulatory clarity surrounding the world’s leading cryptocurrency.
However, the SEC’s stance on Ethereum has sparked more controversy. While Ethereum ETFs have also been approved, the SEC has opened multiple investigations into major Ethereum service providers like Consensys and Uniswap. Unlike Bitcoin, the regulator has not classified Ethereum as a security or non-security, leading to significant uncertainty for participants in its ecosystem.
Gensler’s leadership has faced sharp criticism from US policymakers, who accuse him of stifling blockchain innovation and fostering confusion in the crypto market. In a recent Parliamentary hearing, Gensler argued that the crypto industry has largely ignored existing regulations, seeking special treatment instead. However, some, like Robinhood’s lead lawyer Dan Gallagher, claim that the SEC has intentionally delayed responses to firms trying to comply with the rules.
Solana has emerged as the leading blockchain in terms of daily active addresses, surpassing established players like Bitcoin and Ethereum. Recent data reveals that Solana recorded 3.04 million active addresses, showcasing its increasing traction in the blockchain space. In comparison, Toncoin and Tron also showed impressive numbers with 2.89 million and 2.5 million active addresses, respectively, highlighting their growing ecosystems and user engagement.
While Bitcoin and Ethereum maintain strong market positions, their daily active addresses lag significantly behind newer competitors. Bitcoin registered about 779,650 active addresses, while Ethereum saw around 417,900. This trend suggests that newer blockchains may be drawing users away, likely due to factors such as lower transaction fees and faster processing times.
Other noteworthy blockchains, including Litecoin, Algorand, Dogecoin, and Avalanche, displayed varying levels of daily activity, reflecting a diverse landscape in user engagement. As blockchain technology continues to advance, the competition among these networks is set to intensify, potentially reshaping the future of digital asset interactions.
BNY Mellon, one of the largest US banks, is moving closer to offering custody services for Bitcoin and Ether exchange-traded fund (ETF) clients. This follows a decision by the US Securities and Exchange Commission (SEC) to ease requirements surrounding Staff Accounting Bulletin (SAB) 121, which had imposed strict guidelines for companies holding client Bitcoin.
SAB 121, introduced in 2022, required firms to list Bitcoin assets as liabilities, causing frustration in the industry. However, after reviewing the matter, the SEC’s Office of the Chief Accountant determined that BNY Mellon did not need to comply with SAB 121, allowing the bank to advance its crypto services.
Despite this progress, BNY Mellon still needs additional regulatory approval to offer these services at scale. The bank has stated that it continues to work with its banking regulators to fully roll out its custody offerings for crypto ETFs.
