Bitcoin (BTC) is about to disappoint investors as it is about to end October, a historically good month, in the red. Meanwhile, the BNB chain has seen record activity as token prices surged in early October.
In the EU, the territory is still in flux as countries decide whether to support the “Chat Control” proposal, with nine strongly opposed. Concern over a lack of support led parliamentarians in Brussels to delay their decision on the controversial regulation until December.
While the US government shutdown has paralyzed most federal business, including decisions on cryptocurrency exchange-traded projects, cryptocurrency bills in four states moved forward this month.
Meanwhile, stablecoin adoption continues to grow. The total market capitalization of the stablecoin market surpassed $300 billion for the first time in October.
Here is October according to the lists:
Bitcoin Falls 10% Monthly in First Red ‘Uptober’ in Seven Years
For the past six years, Bitcoin traders have expected profits in October. The trend was so reliable that the crypto community dubbed the month “Uptober.” However, this year, Bitcoin ended down more than 10% for the month, bucking the trend.
Several unique factors put downward pressure on the price of Bitcoin this month, including a nearly $20 billion liquidation event triggered by US President Donald Trump’s trade war with China and rate cuts at the US Federal Reserve.
Some traders believe a disappointing October could mean an even bigger rally in November. Others are less convinced. Analyst Crypto Rover said: “The last time October closed in the red for Bitcoin, November saw a 36.57% drop.”
BNB Chain Transactions Increase 135% in October
October saw a 135% increase in transactions on the BNB chain as memecoin issuance skyrocketed, according to Nansen analysis. Bubblemaps declared that “memecoin szn is real” on BNB Chain.
According to the analytics platform, more than 100,000 new traders bought memecoins on October 7 and 70% made profits. About 40 of them won more than a million dollars, while 6,000 won at least $10,000.
Pseudonymous cryptocurrency trader Star Platinum claimed that the majority of memecoins had crashed on October 8 and 9.
“Retail bought the top. Large holders sold them. If we look at the on-chain data, we see: concentrated supply, low liquidity, repeated bot operations. [and] exits to DEX/CEX at the peak,” they said.
The memecoin frenzy saw BNB Chain’s Four.meme platform become the dominant format for memecoin launches. On October 1, Pump.fun accounted for over 90% of all new launches, but on October 8, Four.meme reversed the balance to over 80% of all new token launches.
The memecoin frenzy caused a concomitant rise in the price of the BNB token (BNB), which surpassed $1,300 on October 13. The token has since fallen, but is still up 6.6% on the month.
Nine countries oppose Chat Control and postpone it until December
The number of EU member states supporting “chat control” continues to change. As of the end of October, 12 countries support it, while nine openly oppose it. Six remain undecided.
Ahead of a vote scheduled for Oct. 14, observers and privacy activists were watching closely to see which way Germany would vote. At the time, most member states supported “Chat Control,” but the bloc did not include the 65% of the EU population needed to be approved.
Germany, being the most popular state in the EU, is crucial if the European Council is to secure the support needed to pass the bill. However, at the time of this publication, public records collected by Fight Chat Control, a privacy advocacy group that follows the law, show that Germany opposes it.
The proposed chat control law has been in existence since 2022, but has not gained the necessary support for passage. The current iteration, introduced by the Danish presidency of the European Council, would introduce mandatory monitoring of encrypted messages to detect people trafficking in child sexual abuse material. The vote has been postponed until December.
Four US states working on cryptocurrency laws
While partisan gridlock slows the US Senate’s progress on the Responsible Financial Innovation Act, US states continue to introduce their own laws for the cryptocurrency industry. In October, four US states moved forward with cryptocurrency laws.
In Florida, the legislature introduced a bill that “authorizes the Florida 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 introduced requirements for crypto kiosks and guidelines for stablecoin issuers operating in the state.
Wisconsin is updating its tax code. Current law allows crypto mining data centers to remain exempt from income tax. A new bill would close that loophole. The state Senate is also working on a bill that “ensures that individuals and businesses can accept digital assets for payments, use hardware or self-hosted wallets, operate blockchain nodes, develop blockchain software, transfer digital assets, and engage in gambling.”
Related: Lost your Bitcoin in California? You could get it all back
New York is working on a new excise tax on electricity used in proof-of-work crypto mining. Massachusetts is updating fiduciary rights regarding cryptocurrencies.
California passed a law stating that the state cannot sell abandoned Bitcoin immediately and it must be preserved in its original form. Observers say this will facilitate recovery and reduce burdens on exchanges.
Stablecoins surpass $300 billion
As stablecoin adoption increases globally, its total market capitalization surpassed $300 billion in October.
The new high comes amid bullish news for stablecoins in October. EURAU, the euro-backed stablecoin from AllUnity, itself a joint project of Deutsche Bank and asset manager DWS, is expanding to multiple blockchains.
Neobank Revolut has introduced a 1:1 conversion between dollars and stablecoins for its customers. Indonesia’s central bank is reportedly planning to issue a “national stablecoin,” that is, a digital currency backed by government bonds.
On October 29, Visa CEO Ryan McInerney announced: “Adding support for four stablecoins running on four unique blockchains, representing two currencies that we can accept and convert to more than 25 traditional fiat currencies.”
Magazine: Grokipedia: ‘Far-Right Talking Points’ or a Much-Needed Antidote to Wikipedia?
