Weekly Cryptocurrency Roundup 13-20 October, 2024

Market Overview

Bitcoin (BTC) exhibited moderate volatility throughout the week, with a steady upward trend overall, increasing by 9.14% from $62,870 on October 13 to $68,616 by October 20. The week’s price action reflects a combination of macroeconomic developments, institutional interest, and technical strength.

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• October 13-14: Bitcoin started the week around $62,870 and jumped by 5.11% on October 14, driven by a surge in demand as whales and institutional players likely accumulated positions. This growth pushed Bitcoin to $66,081 by October 14, with trading volumes surging to 122K BTC, indicating strong buying momentum.
• Mid-week volatility: By October 16, Bitcoin had crossed the $67,000 mark, continuing to gain momentum with an additional 0.81% increase on higher volumes (98.3K BTC). Despite a brief dip on October 17, when prices fell slightly by 0.3%, BTC quickly recovered on October 18 with a strong rally of 1.49%, closing near $68,423.
• End of the week: October 19 and 20 saw Bitcoin stabilize around $68,373, with a marginal gain of 0.36%. On-chain data indicated whale activity remained robust, with large transfers to exchanges hinting at potential profit-taking. However, the continued interest from institutional investors and a bullish technical setup prevented any significant pullback.

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Key Metrics

Trading Volume: Bitcoin’s trading volume remained consistently high throughout the week, reflecting strong market activity. On October 14, the volume surged to 122,090 BTC, coinciding with the significant price rally, which indicates aggressive buying by both retail and institutional players. The highest volume was observed on October 15, reaching 136,720 BTC, further confirming the growing market interest during the $67,000 price breakout. Towards the end of the week, the volume slightly dipped but remained strong, recording 35,080 BTC on October 20, maintaining market liquidity even as the price stabilized.

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Whale Activity: Whale movements were particularly noticeable this week. Large holders moved significant amounts of BTC to exchanges, with key transactions noted on October 14 and 15. These whale activities were likely a factor behind Bitcoin’s early-week surge past the $65,000 level. On-chain data indicated that whales continued to transfer substantial amounts of BTC, likely to take advantage of the rising prices. This activity remained robust throughout the week, contributing to Bitcoin's upward trajectory and liquidity across exchanges. Whale activity cooled slightly toward the weekend, signaling potential short-term profit-taking as Bitcoin approached the $68,000 level.

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Technical Indicators: The technical outlook for Bitcoin remained bullish throughout the week. The Relative Strength Index (RSI) stayed consistently above 50, reflecting strong momentum and suggesting that buying pressure outweighed selling pressure for most of the week. On October 14, the RSI briefly entered the overbought zone as Bitcoin pushed past $66,000, indicating strong short-term bullish sentiment. The Moving Average Convergence Divergence (MACD) also supported the bullish trend, with the MACD line staying above the signal line for the entire week, pointing to continued upward momentum. Key support levels around $64,000 held firmly during brief corrections, while resistance at $68,500 was tested multiple times, signaling strong market interest at these higher levels.

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Institutional Interest: Institutional participation continued to support Bitcoin’s upward movement. Several large financial institutions were reported to have increased their Bitcoin holdings as the price climbed past the $65,000 mark. This accumulation was likely driven by anticipation of regulatory clarity and optimism about the potential approval of spot Bitcoin ETFs. Additionally, on-chain data showed significant inflows to institutional trading platforms, particularly on October 14 and 15, reflecting heightened interest from this segment of the market.

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Market Sentiment: Sentiment in the market was largely positive, driven by the combination of strong on-chain data, whale accumulation, and institutional involvement. Social media indicators, such as Twitter and Reddit activity, reflected an overall bullish outlook, with increasing discussions about Bitcoin’s ability to break the $70,000 level in the near term. Despite brief periods of consolidation, market participants remained optimistic, fueled by favorable macroeconomic conditions and positive regulatory signals.

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In summary, Bitcoin’s consistent upward movement this week was supported by strong trading volumes, sustained whale activity, and a bullish technical setup. The market's resilience and continued institutional interest suggest that Bitcoin may have more room for growth in the coming weeks, especially if the positive regulatory developments around spot ETFs materialize.

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Major Developments

BlackRock has revealed its ambitions to expand the use of its tokenized fund to major cryptocurrency exchanges, including Binance, OKX, and Deribit. This initiative is part of BlackRock’s broader strategy to lead the development of tokenized financial products, which it sees as the future of asset management. By encouraging these prominent exchanges to integrate its tokenized fund, BlackRock aims to increase liquidity and accessibility for institutional and retail investors alike. The tokenization of traditional assets, such as funds, allows for more efficient, secure, and transparent transactions on the blockchain. If successful, this collaboration could significantly enhance the adoption of tokenized assets in mainstream finance and further solidify BlackRock’s role as a key player in the evolving crypto ecosystem.

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Stripe is reportedly in advanced talks to acquire Bridge, a fintech company specializing in cross-border payments via stablecoins. This acquisition would bolster Stripe’s efforts to integrate blockchain technology into its payment infrastructure, allowing for faster, cheaper, and more efficient cross-border transactions. Stablecoins, which are pegged to the value of traditional fiat currencies, offer significant advantages for international payments by minimizing volatility and reducing fees associated with traditional banking methods. By acquiring Bridge, Stripe positions itself to lead the next generation of global payment solutions, potentially reducing the reliance on existing payment networks and expanding the use of stablecoins in everyday commerce. This move reflects the increasing interest from fintech giants in leveraging blockchain technology to enhance global financial systems.

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In Thailand, the country’s oldest bank, Siam Commercial Bank (SCB), is preparing to launch a new service that will facilitate cross-border transfers using stablecoins. This development is seen as a significant milestone in the integration of blockchain technology within traditional banking systems in Southeast Asia. SCB’s stablecoin service aims to simplify and accelerate international remittances, particularly for Thailand’s large expatriate community and businesses engaged in cross-border trade. By utilizing stablecoins, the bank can offer faster transaction times and lower fees compared to traditional remittance services, making it more competitive in the global payments market. This move also aligns with the Thai government’s broader push to embrace digital currencies and blockchain as tools for financial inclusion and innovation within the country.

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Fidelity made headlines by expanding its cryptocurrency custody services to include Ethereum (ETH). The move reflects growing institutional interest not just in Bitcoin but also in other leading digital assets like Ethereum. Fidelity’s expansion is expected to attract more institutional capital to Ethereum, further cementing its position as the second-largest cryptocurrency by market capitalization. As institutional demand for crypto continues to rise, such custody services are critical in providing the infrastructure needed for large-scale investments.

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Visa completed the integration of stablecoins into its cross-border payments system. This marks a significant step toward the mainstream adoption of cryptocurrencies in traditional finance. By leveraging stablecoins, Visa aims to improve transaction efficiency, lower costs, and increase transparency for cross-border payments. This integration is expected to enhance the use of digital currencies in global trade and could lead to wider acceptance of crypto among businesses and consumers.

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Deutsche Bank announced a partnership with Bitpanda to offer its clients real-time cryptocurrency transfers. This collaboration represents a major step in bridging the gap between traditional banking and digital assets. Through this partnership, Deutsche Bank customers in Germany can now access advanced cryptocurrency payment solutions, reflecting the growing demand for integrating digital assets with traditional financial services. The move underscores the increasing role that major banks are playing in the crypto space as they seek to meet the evolving needs of their clients.

Creditors of the bankrupt Mt. Gox exchange are facing further delays in the payout of their Bitcoin holdings. The court handling the case announced that repayments could be postponed for up to three more months. The delay prolongs uncertainty for the market, as the release of Mt. Gox’s large Bitcoin reserves has the potential to impact liquidity and prices. This situation highlights the ongoing complications surrounding one of the earliest and most significant collapses in crypto exchange history.

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Aave launched "Aave Arc," a permissioned version of its DeFi protocol designed for institutional investors. This platform allows institutional clients to access decentralized financial services while ensuring compliance with regulatory standards. Aave Arc aims to bridge the gap between traditional finance and decentralized finance (DeFi), offering institutional players the benefits of DeFi with added layers of regulatory oversight. This is seen as a significant step toward bringing more institutional capital into the DeFi ecosystem.

Polygon announced a partnership with DraftKings to develop blockchain-based gaming solutions. This collaboration leverages Polygon’s scalability and DraftKings’ large user base to create innovative blockchain-driven gaming experiences. The partnership is expected to increase the adoption of blockchain technology in the gaming industry by providing new avenues for user engagement and reducing transaction costs associated with traditional payment systems.

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Solana successfully completed a major network upgrade aimed at improving transaction speed and network stability. This upgrade makes the Solana blockchain more attractive to developers and users alike, enhancing its competitiveness in the market. With faster transaction times and improved network performance, Solana is positioning itself as a leading platform for decentralized applications (dApps), particularly in sectors that require high-frequency trading and other time-sensitive operations.

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Litecoin’s upcoming halving event, scheduled for August 2024, has started to generate increased market interest. Historically, Litecoin halvings have led to price volatility, as the reduction in mining rewards is seen as creating scarcity. As the event approaches, analysts expect heightened speculation and trading activity around Litecoin, potentially leading to a price increase in the months leading up to the halving.

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Kusama concluded its latest round of parachain auctions, successfully onboarding several new projects into its ecosystem. These auctions are a critical part of Kusama’s strategy to enhance its scalability and allow more specialized blockchains to operate within its network. The success of the auctions reinforces Kusama’s role as a testing ground for new blockchain innovations before they are implemented on its parent network, Polkadot.

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Crypto.com expanded its operations into the Canadian market, offering a wide range of services including trading, staking, and crypto payments. This expansion is part of Crypto.com’s broader global strategy to increase its presence in key markets. With Canada’s growing interest in cryptocurrencies, this move is expected to attract more users to Crypto.com’s platform and strengthen its foothold in North America.

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El Salvador continues to embrace Bitcoin as legal tender, with President Nayib Bukele unveiling new plans for the creation of "Bitcoin City." This city, which will be funded through the issuance of crypto bonds, is designed to further integrate Bitcoin into the country’s economy and infrastructure. Bukele’s administration remains committed to its pro-Bitcoin stance despite the volatility in the crypto market, promoting the digital currency as a tool for economic growth and innovation.

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Binance launched a new NFT marketplace, aiming to capitalize on the growing interest in non-fungible tokens. The platform will allow users to create, buy, and sell NFTs, providing artists and creators with new ways to monetize their work. Binance’s entry into the NFT space is part of its broader strategy to expand its ecosystem and capture a share of the rapidly growing NFT market, which has seen a surge in both interest and value over the past year.

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South Korea announced that it is delaying the implementation of its cryptocurrency tax regulations. The government cited the need for more time to prepare the necessary infrastructure before enforcing the new tax laws. The delay has been welcomed by the local crypto community, as it provides temporary relief from potential tax burdens. However, the postponement also underscores the challenges regulators face in developing frameworks that can accommodate the fast-evolving crypto sector.

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