Bitcoin (BTC) is poised to disappoint investors, as it is on the verge of concluding October, a historically strong month, in negative territory. Concurrently, BNB Chain has experienced record activity, with token prices seeing a surge at the beginning of October.
Within the European Union, the landscape continues to evolve as individual countries deliberate on their stance regarding the "Chat Control" proposal. Nine nations have expressed outright opposition to the initiative. Concerns over the lack of widespread support prompted lawmakers in Brussels to postpone their decision on the controversial regulation until December.
While a US government shutdown has brought most federal operations to a standstill, including decisions on cryptocurrency exchange-traded projects, legislative efforts concerning crypto have advanced in four states this month.
Meanwhile, stablecoin adoption continues its upward trajectory. The total market capitalization of the stablecoin market surpassed $300 billion for the first time in October.
Bitcoin Down 10% on the Month in First Red “Uptober” in Seven Years
For the past six years, Bitcoin traders have anticipated gains in October. This trend was so consistent that the crypto community coined the month "Uptober." However, this year, Bitcoin concluded the month down over 10%, breaking this established pattern.
Several unique factors contributed to downward pressure on Bitcoin's price this month. These included a liquidation event of nearly $20 billion, triggered by geopolitical tensions and trade disputes, as well as interest rate adjustments by the US Federal Reserve.
Some traders believe that a disappointing October could foreshadow a larger rally in November. Others remain skeptical. Analyst Crypto Rover noted that the last time October closed in the red for Bitcoin, November experienced a 36.57% drop.
BNB Chain Transactions Spike 135% in October
October witnessed a 135% increase in transactions on the BNB Chain, driven by a surge in memecoin issuance, according to Nansen analytics. Bubblemaps indicated that "memecoin szn is real" on BNB Chain.
According to the analytics platform, over 100,000 new traders entered the memecoin market on October 7, with 70% of them realizing profits. Approximately 40 of these traders generated over $1 million, while 6,000 individuals earned at least $10,000.
Pseudonymous crypto trader Star Platinum claimed that most of the memecoins had experienced a price crash by October 8 and 9. They elaborated, stating that retail investors bought at the peak, while large holders sold off their positions. On-chain data indicated concentrated supply, low liquidity, repeated bot trades, and exits to decentralized and centralized exchanges at the peak.
The memecoin frenzy led to the BNB Chain's Four.meme platform becoming the dominant method for launching memecoins. On October 1, Pump.fun accounted for over 90% of all new issuances, but by October 8, Four.meme had shifted this balance, representing over 80% of all new token launches.
This surge in memecoin activity was accompanied by a corresponding spike in the price of BNB's (BNB) token, which surpassed $1,300 on October 13. Although the token has since seen a decline, it remains up 6.6% for the month.
Nine Countries Oppose Chat Control, Postponing Decision to December
The alignment of EU member states regarding the "Chat Control" proposal continues to fluctuate. As of the end of October, 12 countries supported the proposal, while nine openly opposed it, and six remained undecided.
Leading up to a scheduled vote on October 14, observers and privacy advocates closely monitored Germany's decision. At that time, a majority of member states supported "Chat Control," but this bloc did not represent the required 65% of the EU population needed for the bill to pass.
Germany, being the most populous state in the EU, holds significant influence in the European Council's efforts to secure the necessary support for the bill's passage. However, as of the current reporting time, public records collected by Fight Chat Control, a privacy advocacy group tracking the legislation, indicate that Germany opposes the proposal.
The proposed Chat Control law has been under consideration since 2022 but has not yet garnered the required support for approval. The current iteration, introduced by the Danish presidency of the European Council, would mandate the screening of encrypted messages to identify individuals involved in trafficking child sexual abuse material. The vote has been rescheduled for December.
Four US States Advance Crypto Legislation
While partisan disagreements are slowing progress on federal crypto legislation in the US Senate, individual states are actively introducing their own laws for the cryptocurrency industry. In October, four US states made notable advancements in their crypto-related legislative efforts.
In Florida, the legislature introduced a bill that authorizes the state'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. The bill also establishes requirements for crypto kiosks and provides guidelines for stablecoin issuers operating within the state.
Wisconsin is in the process of updating its tax code. Current legislation exempts crypto mining data centers from income tax. A new bill aims to close this loophole. The state senate is also working on a bill that ensures individuals and businesses can accept digital assets for payment, utilize self-hosted or hardware wallets, operate blockchain nodes, develop blockchain software, transfer digital assets, and participate in staking.
New York is developing a new excise tax on electricity consumed by proof-of-work crypto mining operations. Massachusetts is updating its fiduciary rights concerning cryptocurrencies.
California enacted a law stipulating that abandoned Bitcoin cannot be immediately sold by the state and must be preserved in its original form. This measure is expected to facilitate recovery efforts and reduce burdens on exchanges.
Stablecoins Surpass $300 Billion Market Capitalization
As the global adoption of stablecoins continues to grow, their total market capitalization exceeded $300 billion in October.
This new milestone coincides with positive developments for stablecoins throughout October. AllUnity's euro-backed stablecoin, EURAU, a collaborative project between Deutsche Bank and asset manager DWS, is expanding its presence across multiple blockchains.
Neobank Revolut has introduced a 1:1 conversion feature between dollars and stablecoins for its customers. Indonesia's central bank is reportedly planning to issue a "national stablecoin," which would be a digital currency backed by government bonds.
On October 29, Visa CEO Ryan McInerney announced the company's intention to support four stablecoins operating on four distinct blockchains, representing two currencies that can be accepted and converted into over 25 traditional fiat currencies.