Bitcoin (BTC) is poised to disappoint investors as it approaches the end of October, traditionally a strong month, while trailing in the red. In contrast, BNB Chain has experienced record activity with token prices surging at the start of October.
In the EU, the landscape remains fluid as member states deliberate their stance on the “Chat Control” proposal, with nine countries firmly opposing it. Concerns over waning support prompted lawmakers in Brussels to push their decision on this contentious regulation to December.
Despite the US government shutdown hindering most federal operations, including deliberations on crypto exchange-traded projects, crypto legislation in four states has progressed this month.
In addition, the adoption of stablecoins continues to rise, with the total market capitalization of the stablecoin sector surpassing $300 billion for the first time in October.
Here’s October depicted through the charts:
Bitcoin down 10% on the month in first red “Uptober” in seven years
For the past six years, Bitcoin traders have eagerly anticipated gains in October, a trend so consistent that the crypto community dubbed it “Uptober.” However, this year, Bitcoin has closed over 10% lower, breaking that trend.
A variety of unique factors pressured Bitcoin’s price down this month, including a nearly $20 billion liquidation event triggered by US President Donald Trump’s trade war with China and rate cuts from the US Federal Reserve.
Some traders speculate that a disappointing October could lead to a substantial rally in November. Others remain skeptical. Analyst Crypto Rover noted, “The last time October closed red for Bitcoin, November saw a 36.57% drop.”
BNB Chain transactions spike 135% in October
October witnessed a 135% surge in transactions on the BNB Chain, coinciding with a significant uptick in memecoin issuance, according to Nansen analytics. Bubblemaps stated that “memecoin szn is real” on BNB Chain.
The analytics platform revealed that over 100,000 new traders entered the memecoin market on Oct. 7, with 70% making gains. Approximately 40 of these traders earned over $1 million, while 6,000 made at least $10,000.
Pseudonymous crypto trader Star Platinum asserted that most memecoins had plummeted by Oct. 8 and 9.
“Retail bought at the peak. Large holders sold. Onchain data reveals: concentrated supply, minimal liquidity, repetitive bot trades [and] exits to DEX/CEX at peak,” they stated.
The memecoin surge propelled BNB Chain’s Four.meme platform to prominence for memecoin launches. On Oct. 1, Pump.fun accounted for over 90% of all new token issuances, but by Oct. 8, Four.meme had flipped the tide, controlling over 80% of new token launches.
This memecoin enthusiasm led to a spike in BNB’s (BNB) token price, which hit $1,300 on Oct. 13. Although the token has since receded, it remains up 6.6% for the month.
Nine countries oppose Chat Control, kicking it to December
The number of EU member states backing the “Chat Control” initiative continues to fluctuate. By the end of October, 12 countries were in favor while nine were openly against it. Six countries remained undecided.
As a vote scheduled for Oct. 14 approached, observers and privacy advocates were keenly monitoring Germany’s position. At the time, a majority of member states backed “Chat Control,” but they did not meet the 65% of EU population threshold required for passage.
Germany, the EU’s most populous nation, plays a crucial role in achieving the majority needed for the European Council to pass the bill. However, as of the time of publication, records compiled by Fight Chat Control, a privacy advocacy organization monitoring the legislation, indicate that Germany opposes it.
The proposed Chat Control measure has existed since 2022 but has failed to gather sufficient backing for passage. The latest version, put forth by the Danish presidency of the European Council, seeks to mandate the screening of encrypted communications to identify trafficking of child sexual abuse material. The vote has been deferred until December.
Four US states work on crypto laws
While partisan gridlock is stalling the US Senate’s efforts regarding the Responsible Financial Innovation Act, individual US states continue to advance their own legislation for the cryptocurrency sector. In October, four states made headway on crypto-related laws.
In Florida, lawmakers proposed a bill to “authorize Florida’s Chief Financial Officer and specific public entities to invest portions of state and local funds in digital assets, including Bitcoin and exchange-traded products.” It also includes guidelines for crypto kiosks and stablecoin issuers operating within the state.
Wisconsin is revising its tax regulations to close a loophole allowing crypto mining data centers to remain exempt from income tax. The state senate is also drafting a bill that “ensures individuals and businesses can accept digital assets for payment, utilize self-hosted or hardware wallets, manage blockchain nodes, develop blockchain applications, transfer digital assets, and engage in staking.”
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New York is establishing a new excise tax on the electricity utilized in proof-of-work crypto mining, while Massachusetts is revising fiduciary rights concerning cryptocurrencies.
California has enacted legislation mandating that abandoned Bitcoin cannot be sold immediately by the state and must be retained in its original form. Observers believe this will facilitate recovery and reduce burdens on exchanges.
Stablecoins top $300 billion
As global adoption of stablecoins rises, their total market capitalization exceeded $300 billion in October.
This new record occurs amidst positive developments for stablecoins in October. AllUnity’s euro-backed stablecoin, EURAU, a collaboration with Deutsche Bank and asset manager DWS, is set to expand across multiple blockchains.
Neobank Revolut has launched a 1:1 conversion scheme between dollars and stablecoins for its users. Furthermore, Indonesia’s central bank is reportedly gearing up to issue a “national stablecoin,” essentially a digital currency backed by government bonds.
On Oct. 29, Visa CEO Ryan McInerney announced, “We are adding support for four stablecoins operating on four distinct blockchains, allowing us to accept and convert them to over 25 traditional fiat currencies.”
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