What to Know:
- Bitcoin (BTC) defies US government shutdown, kickstarting ‘Uptober’ with a surge past $120,000.
- Brazilian energy companies eye Bitcoin miners to offset power oversupply as New York proposes crypto mining taxes.
- European regulators caution against private stablecoins while pushing for a digital euro.
Despite the ongoing US government shutdown, Bitcoin started October on a bullish note, hinting at the return of its traditional ‘Uptober’ streak. The shutdown has put altcoin exchange-traded fund (ETF) applications on hold, causing a ripple effect across the crypto market. Meanwhile, legal battles and policy experiments continue to dominate crypto news.
In the UK, two individuals have pleaded guilty to what is being termed as the world’s most substantial crypto seizure. This case has sparked debates on whether victims should be compensated at the current value of Bitcoin or the value at the time of their loss.
Brazil is attempting to utilize its excess energy supply by inviting crypto miners, while New York legislators propose new taxes that could potentially expel the industry from the state. In Europe, regulators have issued new warnings against stablecoins as they advance their euro-based alternatives.
Even as the US government shutdown lingers, Bitcoin surpassed the $120,000 mark, stirring optimism among traders and investors. This strong performance against the backdrop of the shutdown is a testament to Bitcoin’s resilience and its potential to continue its October winning streak.
This ongoing government deadlock is significant for both traditional and digital assets as it postpones the release of key US jobs data. Investors and traders keep a close eye on such indicators to anticipate the Federal Reserve’s policy trajectory before the next Federal Open Market Committee (FOMC) meeting.
Following the government shutdown, the Securities and Exchange Commission’s review of routine applications, including crypto ETFs, is expected to slow down. ETF proposals related to Litecoin (LTC), Solana (SOL), and XRP are likely to face delays. Despite the delay, analysts maintain a bullish outlook, confident that altcoin ETFs will eventually receive approval.
In a surprising turn of events, Brazilian energy firms are welcoming Bitcoin miners as a solution to their chronic power surplus. At least half a dozen projects are being negotiated, offering a unique solution where crypto mining is being leveraged to absorb surplus power.
However, the scenario in New York is starkly different. State Senator Liz Krueger has proposed a tiered excise tax on crypto mining power use, potentially pushing miners reliant on non-renewable energy out of the state.
In a historic case, two individuals have pleaded guilty to money laundering that included a whopping 61,000 BTC. The Bitcoin cache, now valued over $7.24 billion, is at the center of a restitution debate that could potentially trigger a long legal battle.
Meanwhile, European authorities are applying pressure on private digital currencies while planning their own. The European Systemic Risk Board has recommended a ban on stablecoins issued by firms inside and outside the bloc. Amid this pressure, nine major European banks have announced plans to launch a euro-pegged stablecoin.
The European Central Bank is also moving forward with a digital euro, having announced framework agreements with seven technology providers to develop systems for fraud detection, risk management, and offline payments.
As the global crypto market navigates through these challenging times, investors and traders must remain informed and agile. The road ahead may be unpredictable, but it’s filled with opportunities and potential.
