Bitcoin (BTC) is set to let down investors, as it approaches the end of October—a month typically favorable for gains—on a downtrend. In contrast, BNB Chain has experienced unprecedented activity with token prices surging at the start of the month.
Within the EU, the landscape remains fluid as member countries deliberate on the “Chat Control” proposal, with nine nations outright opposing it. Concerns about insufficient support have led lawmakers in Brussels to postpone their ruling on the controversial measure until December.
While the US government shutdown has stalled most federal operations, including decisions on cryptocurrency exchange-traded products, legislative efforts in four states have progressed this month.
At the same time, stablecoin adoption continues to rise, with the total market capitalization of the stablecoin sector exceeding $300 billion for the first time in October.
Here’s October summarized by the charts:
Bitcoin down 10% this month, marking the first red “Uptober” in seven years
Bitcoin traders have eagerly anticipated gains each October for the past six years, leading the crypto community to nickname the month “Uptober”. However, this year, Bitcoin is poised to finish with a more than 10% decline.
A host of unique factors have contributed to the downward pressure on Bitcoin’s price this month, including a near-$20-billion liquidation event spurred by US President Donald Trump’s trade conflict with China and interest rate cuts at the US Federal Reserve.
Some traders are optimistic that a lackluster October could herald a more significant rally in November. Others are skeptical, with analyst Crypto Rover noting that “Last time October closed red for Bitcoin, November saw a 36.57% drop.”
BNB Chain transactions surge 135% in October
October recorded a remarkable 135% surge in transactions on the BNB Chain, attributed to a boom in memecoin issuance, as reported by Nansen analytics. Bubblemaps proclaimed that “memecoin szn is real” on BNB Chain.
Analytics indicate that over 100,000 new traders ventured into memecoins on October 7, with 70% realizing profits. Remarkably, 40 of these individuals accrued over $1 million, while 6,000 made at least $10,000.
Pseudonymous trader Star Platinum observed that most memecoins had plummeted by October 8 and 9.
“Retail bought the top. Big holders sold them. Analyzing on-chain data reveals: concentrated supply, minimal liquidity, repetitive bot trades [and] exits to DEX/CEX at peak,” they remarked.
The memecoin craze led to BNB Chain’s Four.meme platform becoming the top venue for launching memecoins. On October 1, Pump.fun accounted for over 90% of all new issuances, whereas by October 8, Four.meme flipped the scales, claiming over 80% of new token launches.
This memecoin rush coincided with a spike in BNB’s (BNB) token price, which broke the $1,300 mark on October 13. Although the token has since withdrawn, it remains up 6.6% for the month.
Nine countries oppose Chat Control, deferring decision to December
The support for “Chat Control” among EU member states continues to change. As of late October, 12 countries favor it, while nine are firmly opposed. Six others remain undecided.
Leading up to a scheduled vote on October 14, observers and privacy advocates were closely monitoring Germany’s stance. At the time, a majority of member nations supported “Chat Control,” yet they did not represent the 65% of the EU population necessary for passage.
Germany, as the most populous country in the EU, holds significant importance. Nevertheless, as of the time of this report, public records gathered by Fight Chat Control, a privacy advocacy organization, suggest that Germany is against it.
The proposed Chat Control legislation has been in motion since 2022 but has yet to secure the needed backing for approval. The latest version, introduced under the Danish presidency of the European Council, aims to mandate the scanning of encrypted messages to intercept child sexual abuse material. The vote has been rescheduled for December.
Four US states advance cryptocurrency legislation
Although partisan gridlock has stalled the US Senate’s progress on the Responsible Financial Innovation Act, states are moving forward with their own cryptocurrency regulations. In October, four US states made strides in this area.
In Florida, legislation was introduced allowing Florida’s Chief Financial Officer and certain public entities to invest portions of state and local funds in digital assets, including Bitcoin and exchange-traded products. It also set guidelines for crypto kiosks and stablecoin issuers operating in the state.
Wisconsin is revising its tax laws, wherein current regulations exempt crypto mining facilities from income tax. A new bill intends to address this loophole. Additionally, the state senate is working on a bill to ensure that individuals and businesses can accept digital assets for payment, utilize self-hosted or hardware wallets, run blockchain nodes, develop blockchain software, transfer digital assets, and participate in staking.
Related: Lost your Bitcoin in California? You might get it all back
New York is drafting a new excise tax on electricity consumed in proof-of-work crypto mining, while Massachusetts is updating fiduciary responsibilities concerning cryptocurrencies.
California has enacted a law stipulating that abandoned Bitcoin cannot be immediately liquidated by the state and must be preserved in its original form. Observers claim this will facilitate recovery and lessen burdens on exchanges.
Stablecoins exceed $300 billion
As global stablecoin adoption escalates, their overall market capitalization exceeded $300 billion in October.
This new peak emerges amidst optimistic news for stablecoins in October. AllUnity’s euro-backed stablecoin, EURAU, a collaboration between Deutsche Bank and asset manager DWS, is expanding into several blockchains.
Neobank Revolut has launched a 1:1 conversion option between dollars and stablecoins for its customers. Additionally, Indonesia’s central bank is reportedly preparing to unveil a “national stablecoin”—a digital currency supported by government bonds.
On October 29, Visa CEO Ryan McInerney announced, “We will support four stablecoins operating on four unique blockchains, representing two currencies that can be accepted and converted into over 25 traditional fiat currencies.”
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