Bitcoin (BTC) is about to disappoint investors as it is on the verge of ending October, a historically good month, in the red. Meanwhile, the BNB chain saw record activity as token prices spiked in early October.
In the EU, the territory is still shifting as countries decide whether to support the “Chat Control” proposal, with nine outright opposing it. Concerns about a lack of support prompted lawmakers in Brussels to delay their decision on the controversial regulation until December.
While the US government shutdown halted most federal business, including decisions on projects traded on crypto exchanges, crypto accounts in four states moved this month.
Meanwhile, stablecoin adoption continues to grow. The total market capitalization of the stablecoin market exceeded $300 billion for the first time in October.
Here is October by ranking:
Bitcoin down 10% month-to-month in first red “Uptober” in seven years
For the past 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 has fallen over 10% month-to-month, bucking the trend.
Several unique factors have pressured the price of Bitcoin lower this month, including a nearly $20 billion liquidation event that triggered US President Donald Trump’s trade war with China and a rate cut by the US Federal Reserve.
Some merchants believe that a disappointing October could mean an even bigger increase in November. Others are less convinced. Crypto Rover Analyst he said“The last time October ended in the red for Bitcoin, November saw a 36.57% decline.”
BNB chain transactions increased by 135% in October
In October, there was a 135% increase in transactions on the BNB chain as memecoin issuance skyrocketed, according to Nansen analytics. Bubblemaps stated that “memecoin szn is real” on the BNB chain.
According to the analytics platform, more than 100,000 new traders bought memecoins on October 7, and 70% were in profit. 40 of them earned more than a million dollars, while 6000 of them earned at least 10 thousand dollars.
Pseudonymous crypto trader Star Platinum claimed that most memecoins crashed by October 8th and 9th.
“Retail bought the top. The big holders sold them. If we look at the onchain data, it shows: concentrated supply, low liquidity, repeated bot trades (and) DEX/CEX exits at the top,” they said.
The memecoin craze has led to BNB Chain’s Four.meme platform becoming the dominant memecoin launch format. On October 1, Pump.fun accounted for more than 90% of all new releases, but on October 8, Four.meme tipped the balance to more than 80% of all new token launches.
The memecoin craze saw a concomitant surge in the price of BNB’s ( BNB ) token, which broke through $1,300 on October 13. The token has since fallen, but is still up 6.6% month-to-month.
Nine countries oppose the ban on chat, scrapping it by December
The number of EU member states that support “Chat Control” continues to change. By the end of October, 12 countries support it, while nine are openly opposed. Six of them remained undecided.
Ahead of the October 14 vote, observers and privacy activists have been closely watching how Germany will vote. At the time, most member states supported “Chat Control”, but the bloc did not cover the 65% of the EU population that needed to be passed.
Germany, as the most populous country in the EU, is crucial if the European Council is to secure the support needed to pass the law. However, as of the time of publication, public records collected Fight Chat Control, a privacy group that monitors the law, indicates that Germany opposes it.
A proposed chat control law has been in place since 2022, but has not secured the necessary support for passage. The current iteration, introduced by Denmark’s presidency of the European Council, would introduce mandatory verification of encrypted messages to catch people who traffic in child sexual abuse material. The vote was postponed until December.
Four US states are working on crypto laws
As 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 made progress on crypto laws.
In Florida, the legislature introduced 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. The new law would close that loophole. The state senate is also working on a bill that “ensures 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 participate in investment.”
Related: Lost your Bitcoin in California? Maybe it will all come back to you
New York is working on a new excise tax on electricity used in crypto proof-of-work mining. Massachusetts Updates Fiduciary Rights Regarding Cryptocurrencies.
California passed a law that states the state cannot immediately sell abandoned Bitcoin and must keep it in its original form. Observers say this will facilitate the recovery and reduce the burden on the stock markets.
Stablecoins exceed $300 billion
As adoption of stablecoins increases globally, their total market capitalization surpassed $300 billion in October.
The new high comes amid bullish news for stablecoins in October. AllUnity’s euro-backed stablecoin, EURAU, itself a joint project of Deutsche Bank and asset manager DWS, is spreading across several blockchains.
Neobank Revolut has introduced 1:1 conversion between dollars and stablecoins for its clients. Indonesia’s central bank is reportedly planning to issue a “national stablecoin” — i.e., 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.”
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