Bitcoin (BTC) is on the verge of disappointing investors because it looks set to finish October, a historically good month, within the red. Meanwhile, the BNB chain saw record activity as token prices surged in early October.
The terrain remains to be shifting within the EU as countries determine whether to support the “chat control” proposal, with nine countries strongly rejecting it. Concerned in regards to the lack of support, Brussels lawmakers delayed their decision on the controversial regulation until December.
While the federal government shutdown within the US has brought most federal business to a halt, including decisions on exchange-traded crypto projects, crypto laws advanced in 4 states this month.
Meanwhile, the adoption of stablecoins continues to extend. The total market capitalization of the stablecoin market exceeded $300 billion for the primary time in October.
Here's October within the charts:
Bitcoin is down 10% month-on-month in its first red “Uptober” in seven years
For the past six years, Bitcoin traders have been looking forward to October profits. The trend was so reliable that the crypto community dubbed the month “Uptober.” However, Bitcoin ended this 12 months down over 10% month-on-month, bucking the trend.
Bitcoin price chart October. Source: TradingView
Several unique aspects are putting downward pressure on Bitcoin's price this month, including an almost $20 billion liquidation event triggered by U.S. President Donald Trump's trade war with China and rate of interest cuts by the U.S. Federal Reserve.
Some traders consider a disappointing October could mean an excellent larger rally in November. Others are less convinced. Analyst Crypto Rover said: “The last time October closed within the red for Bitcoin was a 36.57% decline in November.”
BNB Chain Transactions Increased 135% in October
According to Nansen Analytics, October saw a 135% increase in transactions on the BNB chain as memecoin issuance skyrocketed. Bubblemaps stated that “Memecoin SZN is legit” on the BNB chain.
According to the analytics platform, over 100,000 latest traders bought into memecoins on October 7, and 70% made profits. About 40 of them earned over $1 million, while 6,000 earned not less than $10,000.
Pseudonymous crypto trader Star Platinum claimed that the majority memecoins crashed on October eighth and ninth.
“Retailers bought the highest. Large holders sold them. Looking on the on-chain data shows: concentrated supply, low liquidity, repeat bot trades.” [and] “Exits to DEX/CEX at peak,” they said.
The memecoin frenzy led to BNB Chain's Four.meme platform becoming the dominant format for memecoin adoption. On October 1st, Pump.fun accounted for over 90% of all latest issuances, but on October eighth, Four.meme turned the remaining around to over 80% of all latest token launches.
The memecoin frenzy concurrently led to a surge within the BNB token price (BNB), which broke $1,300 on October 13. The token has fallen since then, but remains to be up 6.6% month-on-month.
Nine countries reject chat control and postpone it until December
The variety of EU member states that support “Chat Control” continues to fluctuate. As of the tip of October, 12 countries support it, while nine countries openly oppose it. Six are still undecided.
In the run-up to the vote scheduled for October 14, observers and data protection advocates closely watched how Germany would vote. At the time, a majority of member states supported Chat Control, however the bloc didn’t include the 65% of the EU population needed to pass it.
Germany, because the EU's most populous country, is crucial if the European Council desires to get the support needed to pass the law. However, as of publication, public records collected by Fight Chat Control, a privacy group that tracks the law, show Germany opposes it.
The proposed chat control law has been around since 2022 but has not received the support needed to pass. The current version, introduced by the Danish EU Presidency, would introduce mandatory screening of encrypted messages to catch people trafficking child sexual abuse material. The vote was postponed until December.
Four US states are working on crypto laws
As partisan gridlock slows the U.S. Senate's progress on the Responsible Financial Innovation Act, U.S. states proceed to introduce their very own laws for the cryptocurrency industry. In October, 4 US states made progress on crypto laws.
In Florida, lawmakers introduced a bill that will “authorize Florida’s chief financial officer and certain public entities to take a position portions of state and native funds in digital assets, including Bitcoin and exchange-traded products.” It also introduced requirements for crypto kiosks and guidelines for stablecoin issuers operating within the state.
Wisconsin is updating its tax code. Under current law, crypto mining data centers can remain exempt from income tax. A brand new bill would close this gap. The state Senate can also be working on a bill that will “make sure that individuals and businesses can accept digital assets for payment, use self-hosted or hardware wallets, operate blockchain nodes, develop blockchain software, transfer digital assets, and take part in staking.”
New York is working on a brand new excise tax on electricity utilized in proof-of-work crypto mining. Massachusetts updates fiduciary laws regarding cryptocurrencies.
California has passed a law stating that abandoned Bitcoins can’t be immediately sold by the state and have to be kept of their original form. Observers consider it will facilitate the recovery and ease the strain on stock markets.
Stablecoins exceed $300 billion
As the adoption of stablecoins increases worldwide, their total market capitalization exceeded $300 billion in October.
The latest high comes amid bullish news for stablecoins in October. AllUnity's Euro-backed stablecoin EURAU, itself a joint project between Deutsche Bank and asset manager DWS, is being expanded to multiple blockchains.
Neobank Revolut has introduced a 1:1 conversion between dollars and stablecoins for its customers. The Indonesian central bank is reportedly planning to issue a “national stablecoin,” a digital currency backed by government bonds.
On October 29, Visa CEO Ryan McInerney announced: “Added support for 4 stablecoins running on 4 unique blockchains, representing two currencies that we will accept and convert to over 25 traditional fiat currencies.”
