Bitcoin (BTC) is about to disappoint investors, as it’s on the verge of ending October, a historically good month, in the red. Meanwhile, BNB Chain has seen record activity as token prices jumped at the beginning of October.
In the EU, the territory is still shifting as countries decide whether to support the “Chat Control” proposal, with nine opposing it outright. Concern over the lack of support saw lawmakers in Brussels delay their decision on the controversial regulation until December.
While the US government shutdown has ground to a halt most federal business, including decisions on crypto exchange-traded projects, crypto bills in four states moved ahead 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’s October by the charts:
Bitcoin down 10% on the month in first red “Uptober” in seven years
For the last six years, Bitcoin traders have looked forward to gains in October. The trend was so reliable that the crypto community dubbed the month “Uptober.” However, this year, Bitcoin finished over 10% down on the month, shirking the trend.
Several unique factors put downward pressure on Bitcoin’s price this month, including a near-$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 that a disappointing October could mean an even bigger rally in November. Others are less convinced. Analyst Crypto Rover said, “Last time October closed red for Bitcoin, November saw a 36.57% drop.”
BNB Chain transactions spike 135% in October
October saw a 135% increase in transactions on the BNB Chain as memecoin issuance spiked, according to Nansen analytics. Bubblemaps stated that “memecoin szn is real” on BNB Chain.
According to the analytics platform, over 100,000 new traders bought into memecoins on Oct. 7, and 70% were in profit. Some 40 of them made over $1 million, while 6,000 made at least $10,000.
Pseudonymous crypto trader Star Platinum claimed that most of the memecoins had crashed by Oct. 8 and 9.
“Retail bought the top. Big holders sold them. If we look at onchain data it shows: concentrated supply, tiny liquidity, repeated bot trades [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 launching memecoins. On Oct. 1, Pump.fun accounted for over 90% of all new issuances, but on Oct. 8, Four.meme flipped the balance to over 80% of all new token launches.
The memecoin frenzy saw a concomitant spike in BNB’s (BNB) token price, which broke $1,300 on Oct. 13. The token has since fallen but still remains up 6.6% on the month.
Nine countries oppose Chat Control, kicking it to December
The number of EU member states supporting “Chat Control” continues to shift. 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 closely watching to see which way Germany would vote. At the time, a majority of member states supported “Chat Control,” but the block did not comprise the 65% of the EU population needed to pass.
Germany, being the most populous state in the EU, is crucial if the European Council wants to secure the support necessary to pass the bill. However, as of publishing time, public records collected by Fight Chat Control, a privacy advocacy group tracking the law, show that Germany opposes it.
The proposed Chat Control law has been around since 2022 but has not secured the necessary support to pass. The current iteration, introduced by the Danish presidency of the European Council, would introduce mandatory screening of encrypted messages to catch people trafficking child sexual abuse material. The vote has been postponed until December.
Four US states work on crypto laws
While partisan gridlock slows down 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 made progress on crypto laws.
In Florida, the legislature introduced a bill that “authorizes 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 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 may accept digital assets for payment, use self-hosted or hardware wallets, operate blockchain nodes, develop blockchain software, transfer digital assets, and participate in staking.”
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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 abandoned Bitcoin can’t be immediately sold by the state and must be kept in its original form. Observers say this will ease recovery and lower burdens on exchanges.
Stablecoins top $300 billion
As the adoption of stablecoins increases globally, their total market capitalization surpassed $300 billion in October.
The new high-water mark comes amid bullish news for stablecoins in October. AllUnity’s euro-backed stablecoin, EURAU, which itself is a joint project from Deutsche Bank and asset manager DWS, is expanding to several 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” — i.e., a digital currency backed by government bonds.
On Oct. 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 over 25 traditional fiat currencies.”
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