This week in the cryptocurrency market saw significant movements, with digital gold, Bitcoin, rising above $113,000 after an impressive week. The leading cryptocurrency opened at $108,000 on Monday and experienced a spike to $114,000 by Tuesday. However, the optimism was tempered by a mild pullback as the week progressed. Toward the end of the week, data revealing higher US inflation helped bolster investor confidence, leading Bitcoin to finish the week with a 5.5% gain and a market capitalization of $2.26 trillion.
The market reacted positively to inflation data, with the September consumer price index showing a 0.3% increase, slightly down from 0.4% the previous month, while year-over-year unadjusted readings rose to 3.0%. As a result, traders significantly raised the odds of the Federal Reserve lowering the key interest rate to a target range of 3.75–4% at its upcoming meeting on October 29. The broader crypto market mirrored Bitcoin’s gains, with Ethereum hovering around $4,000 and BNB at approximately $1,100. Among the top cryptocurrencies, XRP particularly stood out with an 11% increase over the week.
In political and regulatory news, former President Donald Trump issued a pardon for Changpeng Zhao, the founder of Binance. The pardon came amid claims that Zhao was prosecuted under the Biden administration as part of a broader conflict against cryptocurrencies. The White House press secretary explained the rationale behind the pardon, highlighting Zhao’s continued influence in the crypto industry. The news was met with mixed reactions; while many in the crypto community celebrated the announcement, some Democratic leaders criticized it, claiming it demonstrated corruption. Zhao, who had previously served time and paid a fine related to his business, expressed gratitude for the pardon and pledged to support the development of the crypto sector in the U.S.
Additionally, the cryptocurrency mining sector faced challenges, with debts among miners skyrocketing by 500% year-to-date due to significant investments in mining equipment and AI-related projects. September saw mining profitability dip over 7%, with daily revenue per EH/s of hashrate declining. Despite this downturn, shares of major mining companies experienced notable rises. Analysts have suggested that the rising debts and expansions into AI will not compromise Bitcoin’s blockchain security. They posited that mining remains a viable means to monetize surplus electricity, which benefits both Bitcoin and AI developments.
In a different realm, Tether reported a milestone, announcing the number of USDT users surpassed 500 million. CEO Paolo Ardoino highlighted the importance of programmable money in the evolving financial landscape. Tether’s market capitalization climbed to over $182 billion, commanding roughly 59% of the market, while its rival, Circle’s USDC, stood at around $76 billion. Amidst growing user adoption, Tether is planning to launch a new stablecoin that adheres to U.S. regulations.
Other notable developments included the launch of OpenAI’s Atlas AI browser, which integrates a ChatGPT chatbot to assist users while browsing. The app is currently available only on macOS and boasts features such as a memory function and the ability to perform tasks autonomously.
In summary, the week delivered a mix of optimism and concerns within the cryptocurrency landscape, highlighted by rising Bitcoin prices, political developments surrounding major industry figures, and ongoing dynamics within the mining sector.
