Block 1: Essential news
Coinbase X Visa
Coinbase and Visa have announced a partnership to integrate "Visa Direct," enabling instant transactions between bank accounts and the Coinbase crypto exchange. The partnership will enable eligible Visa card users in the US and EU to deposit and withdraw funds to Coinbase in real time via a new feature on their bank card called "Visa Direct", optimizing their responsiveness to the crypto market. The aim is to reduce the usual banking transaction times and "bridge the gap between traditional finance and blockchain".
Tether in the crosshairs of the US justice system?
The Wall Street Journal reported that the US Department of Justice may be investigating Tether (USDT) for illicit transactions, but Tether has denied this claim. Paolo Ardoino, CEO of Tether, called the accusations "old noises", rejecting the idea of an investigation. Although the company had already been penalized in 2021 for lying that its USDT was backed by 100% backed by fiat currencies, it now publishes quarterly reports via BDO, although these are not independent audits. USDT's daily volume is around $190 billion, and its importance in the crypto economy makes it "too big to fail" according to some experts.
Hong Kong: future crypto hub?
Hong Kong is striving to become a major cryptocurrency hub in Asia, with official licenses for crypto platforms expected by the end of 2024. The Securities and Futures Commission (SFC) has assessed applications and plans to grant licenses to some platforms, with further review before full approvals are granted. In 2025, the SFC will set up an advisory panel to strengthen collaboration between the authorities and crypto platforms. Hong Kong is also developing new laws to oversee stablecoins, confirming its desire to position itself as a regulated "eldorado" for cryptocurrencies.
Lugano in the image of Nakamoto
On October 25, 2024, Lugano unveiled a statue in tribute to Satoshi Nakamoto at the third Plan BITCOIN Forum. Designed by Valentina Picozzi, the work, located in front of the Villa Ciani, symbolizes. For Paolo Ardoino, CEO of Tether, the installation: "reminds us of Satoshi's lasting impact on global finance". As a reminder, Lugano, a pioneer in decentralized finance, even allows tax payments in bitcoins.
JUST IN: 🇨🇭 City of Lugano, Switzerland unveils a new statue honoring Satoshi Nakamoto, creator of #Bitcoin. pic.twitter.com/D8A67hubyq
- Watcher.Guru (@WatcherGuru) October 25, 2024
Block 2: Crypto Analysis of the week
Bitcoin (BTC) is trading this week very close to its all-time high reached last March. BTC reached $73,620 on Tuesday, compared with its March peak of $73,820, a difference of just $200. And American Bitcoin spot ETFs are once again playing their part. They recorded a massive influx of capital, exceeding $870 million on Tuesday, a figure that ranks among the three highest since their launch in January 2024.
SoSo Value
Leading the way, unsurprisingly, is the giant BlackRock, whose IBIT ETF alone attracted over $629 million. Just behind, Fidelity and its FBTC with $133 million, followed by Bitwise with $52 million. Grayscale, the historic leader with its Trust BTC (GBTC), stood out in the opposite direction: it was the only fund to post net outflows, to the tune of $17 million.
The Block
At a time when Bitcoin is approaching its all-time highs, demand for these ETFs seems to be responding to expectations of a close, and above all volatile, US presidential election. Some analysts point to Republican candidate Donald Trump's strong ratings in betting markets, notably on Polymarket, as a factor stimulating demand for Bitcoin. With his stated support for digital assets during his campaign, Trump is turning Bitcoin into a "Trump trade", a short-term anticipation fueled by his pro-crypto positioning. Kamala Harris, for her part, is more reserved on the subject, but open to a regulatory framework for crypto.
Behind these ETF investments are impressive figures: Bitcoin spot ETFs accumulate around 17,000 BTC per week and could, according to Bloomberg analyst James Balchunas, surpass the 1.1 million BTC attributed to Bitcoin founder Satoshi Nakamoto by December. In other words, these ETFs are becoming an increasingly important part of the crypto ecosystem.
Ok we gonna need to move up our predictions as yest alone the btc ETFs gobbled up over 12k coins like Pac-Man on a bender, now hold 996k btc- good chance to pass 1 million today (as the ridiculous volume yest likely to translate to big flows tonight). Legit shot to get to Satoshi by. .. https://t.co/Ua9GzhsBwE pic.twitter.com/84bBprhi6I
- Eric Balchunas (@EricBalchunas) October 30, 2024
Meanwhile, the Bitcoin futures market reached new heights, with a record Open Interest of 600,000 BTC, or $42.6 billion.
Coinglass
As a reminder, "open interest" via futures contracts refers to the total number of outstanding contracts that have not yet been closed. High open interest means that many investors are holding active positions. This can often lead to increased volatility: when a lot of money is at stake and investors are looking to adjust their positions (for example, by buying or selling to minimize their losses or maximize their gains), this creates more price movements, especially as contract expiration dates approach.
Despite this current craze, financing rates remain moderate compared with their March peaks, suggesting stable but not runaway demand. As a reminder, the financing rate is a kind of cost or premium paid by investors to maintain their long or short positions. When it is moderate, it means that demand for these positions, while significant, is not excessive. In this case, current financing rates are below the high levels seen in March, indicating that while interest is there, there is no extreme speculation or unprecedented "overheating" in the market.
The approach of the US elections therefore seems to be energizing the digital assets market, with Bitcoin ETFs and futures contracts posting record levels. However, the evolution of this trend will largely depend on the outcome of the election and the political orientations that follow.
Block 3: Gainers & Losers
Crypto chart (Click to enlarge)
Block 4: This week's readings:
Meet ZachXBT, the masked vigilante tracking billions in cryptocurrency scams and thefts
Gender is playing a crucial role in this US election - and it's not just about Kamal Harris (The Conversation)
What Ark could potentially learn from Lightning (Bitcoin Magazine)