As October concludes, Bitcoin (BTC) breaks its longstanding positive streak, ending the month with a decline of over 10%, a rare setback during a period typically celebrated as “Uptober” in the cryptocurrency community. In contrast, Binance Coin (BNB) experienced significant gains, fueled by increased activity on the BNB Chain and a surge in memecoin launches.
Bitcoin’s Uncharacteristic October Performance
Bitcoin’s price trend for October defied years of historical data, which usually favor gains during this month. Instead, BTC recorded its first down month in seven years. Several factors contributed to this downturn, including a considerable liquidation event near $20 billion triggered amid ongoing US-China trade tensions and interest rate reductions by the US Federal Reserve.
While some market participants remain hopeful about a rebound in November, historical analysis offers mixed signals. Crypto analyst Crypto Rover noted that the last instance of a red October for Bitcoin was followed by a sharp 36.57% pullback in November, indicating cautious sentiment in the market.
BNB Chain Transactions Surge Alongside Memecoin Mania
The BNB Chain saw its transaction volume surge by 135% during October, driven largely by a spike in memecoin issuances. Analytics firm Nansen highlighted that on October 7 alone, over 100,000 new traders entered the memecoin market on the chain, with nearly 70% reporting profits. Remarkably, around 40 traders earned more than $1 million, and approximately 6,000 secured gains exceeding $10,000.
However, activity sharply reversed over the following days, as many memecoins crashed, with market observers attributing this to retail investors buying at peak prices while large holders exited their positions. On-chain data revealed a concentrated supply with limited liquidity and signs of bot-driven trading and rapid sales on decentralized and centralized exchanges.
This frenzy propelled BNB’s token price above the $1,300 mark on October 13 before a partial retreat. Despite this, BNB closed the month up 6.6%. Additionally, Binance’s Four.meme platform emerged as the leading venue for memecoin launches, overtaking Pump.fun by controlling over 80% of new token issuances by early October.
EU’s Chat Control Proposal Faces Growing Opposition and Delay
Meanwhile, regulatory developments in the European Union concerning the “Chat Control” proposal remain unsettled. This controversial initiative, intended to mandate the scanning of encrypted messages to detect illegal content related to child sexual abuse, has polarized member states.
As of the end of October, 12 EU countries have expressed support for the law, while nine have openly opposed it, and six remain undecided. Germany’s opposition is particularly impactful, given its population size and influence within the bloc.
Due to insufficient backing to meet the required majority threshold, the European Council postponed the vote on the legislation, rescheduling it for December. Privacy advocacy groups continue to monitor the situation closely amid concerns over potential privacy infringements.
Stablecoin Market Also Hits Milestone
October saw further milestones beyond price movements and legislation, with the stablecoin market capitalization surpassing $300 billion for the first time. This milestone reflects ongoing adoption and trust in stablecoins amidst a fluctuating crypto environment.
In summary, October 2024 presented a mixed picture for the cryptocurrency sector: Bitcoin’s unexpected dip contrasts with BNB’s rally driven by memecoin activity, while regulatory developments in the EU underscore the complex interplay between innovation and oversight.
