I could say that apart from the $55k mark there was nothing interesting on the bitcoin chart, but that would not be true. This week, the most important event was the non-functioning social networks (Facebook, WhatsApp, Instagram) and many other sites.
“A configuration change on the main routers that coordinate the exchange of traffic between data centers caused a suspension in this exchange,” the company said. ”This, in turn, led to the cascade effect, which caused the suspension of services.”
It was the biggest failure in the last 5 years. Because of the disabled services, users went to other platforms and broke another part of the internet. The failure lasted more than 6 hours.
Of course, jokes flooded the internet (about the apocalypse and things like that), but in reality, such a huge failure of one of the most popular sites in the world made a huge impression. And of course, it is very indirectly related to the world of cryptocurrencies, but it was worth mentioning. And now let’s move on to the more interesting news from this week.
This week we saw a bullish overclocking that took many currencies to the new ATH:
Popular currencies such as BTC, ETH, SHIB, and many others were able to rise higher than in previous weeks. Of course, overcoming the psychological barrier of $55k for the main cryptocurrency affected the market, as if proving that China’s bans do not matter. Someone said that it was because of the words of Gary Gensler: “The SEC will not ban cryptocurrencies following the example of China.” The SEC chairman, during a speech to Congress, said that the regulator has no plans to ban cryptocurrencies:
“Our approach is completely different, we do not plan to ban crypto. Plus, such a decision should come from Congress, not the SEC.”
And popular traders are happy that their predictions came true. And of course many people think that this is just seasonal growth, like every October.
Also, the global crypto market cap is $2.31T, a 0.90% increase over the last day.
Bitcoin price analysis
At the beginning of the week, Bitcoin started at $47.5k. At the time of writing, BTC is holding at $55.69k with a 24-hour trading volume of $35,960,101,710.01. The dominance of BTC in the market is 44.70%.
There is a certain trend: institutions consider Bitcoin to be a better hedging instrument than gold. The American financial conglomerate JPMorgan said that since the beginning of this year, about $10 billion has been withdrawn from gold ETF funds, and more than $20 billion has been received in Bitcoin funds – a sign that in recent months gold has not been a reliable hedging instrument.
JPMorgan also highlighted the main reasons for the current growth of BTC:
– Rapid development of the Lightning Network
– Legalization of BTC in El Salvador
– Statements by American politicians that the United States will not ban cryptocurrencies like China
– Concerns about inflation
Another interesting fact. Users who bought Bitcoin in early 2021 earned 79.2% – the highest rate compared to the world’s top stocks and non-ferrous metals.
Also, according to Glassnode, at the moment about 94.3% of Bitcoin addresses are in profit — more than 16% of addresses have returned to profit compared to September lows.
The last time such a number of “profit addresses” was observed was before the May market collapse.
Of course, this week was the most positive for Bitcoin in recent months, and now everyone expects that after fixing above $50k, Bitcoin will grow further.
Ethereum price analysis
At the beginning of the week, the price was $3268, and at the time of writing, it’s $3578. Meanwhile, The current market dominance of ETH is 18.51%.
What’s new with ETH? Ethereum is preparing for a new update. An update to the Ethereum 2.0 network called Altair will take place on October 27. The developers are integrating the EIP-2982 proposal, which will define node inactivity penalties and other violations to ensure the economic sustainability of Ethereum 2.0.
Altair will also allow developers to test the update mechanism on the network before more significant changes, including before the merger of Ethereum 2.0 with the existing network on Proof-of-Work.
While Ethereum is working on improving the network, competitors are just around the corner. In terms of price growth for 2021, ETH is ahead of only 5 tokens.
But in DeFi-protocols, more than $210 billion is locked – this is a new all-time record.
TOP CRYPTO NEWS
- Bitcoin could become legal tender in Brazil. Congressman Aureo Ribeiro shared information that the bill to recognize BTC as legal tender in Brazil is already ready, and it is supported by the government. The last word was left to the Congress. Ribeiro said that Brazilians are increasingly using BTC in their daily lives, but lack the legal ability to buy, sell and invest in the crypto sector – a recent poll showed that 48% of the country’s residents want Bitcoin to become legal tender.
And yes, the experience of El Salvador shows that such an experiment can be quite successful. About 3 million Salvadorans already use the Chivo Bitcoin wallet, which is half of the country’s population.
- Joe Biden said the US will join forces with 30 other countries, including NATO and G7 allies, to counter cybercrime and the illegal use of cryptocurrencies. Also, the US President called on all Americans and American companies to take the necessary steps to avoid becoming victims of online crimes:
“We must lock our digital doors — by encrypting our data and using multifactor authentication, for example—and we must build technology securely by design, enabling consumers to understand the risks in the technologies they buy”.
- Almost all of the richest Americans are even richer than a year ago – their combined wealth has reached $4.5 trillion. In total, the list included seven representatives of the crypto industry: FTX CEO Sam Bankman-Fried – $22.5 billion, Coinbase CEO Brian Armstrong – $11.5 billion, Ripple co-founder Chris Larsen – $6 billion, Gemini exchange creators Cameron and Tyler Winklevoss – $4.3 billion, Coinbase co-founder Erbase $3.5 billion, Former Ripple CTO Jed McCaleb – $3 billion. Of course it’s nice that the ranks of the most influential people on the planet are occupied by representatives of the crypto industry.
Jeff Bezos and Tesla CEO Elon Musk occupy the first places on the general list. Well, it’s only natural!
- Another bank has made a serious decision to enter the world of cryptocurrencies. The fifth largest commercial bank in the United States U.S. Bank is preparing to offer its clients a service for working with cryptocurrencies. The offering will help investment managers store private keys for Bitcoin, Bitcoin cash and Litecoin with assistance from sub-custodian NYDIG.
Bank of America said in a new report that “the crypto industry is too big to ignore.” And now the Uruguayan central bank is also taking new decisions. The central bank of the country stated that cryptocurrencies can aid in the development and improvement of the efficiency of the financial and payment system, therefore, the regulator urgently created a special group to study the optimal way to regulate virtual digital assets, taking into account the realities of the crypto industry.
- Soros Fund Management CEO Dawn Fitzpatrick has officially announced that the billionaire’s family fund holds cryptocurrencies, trades BTC, and is also interested in DeFi use cases. She went on to cite the $2 trillion+ cryptocurrency market cap, and over 200 million users of digital assets around the world. With this, she sees more than just a new asset class, but a booming industry and technology altogether.
- Whales bought $1.6 billion worth of BTC in 5 minutes. CryptoQuant analysts reported that on October 6, during the rapid rise of the first cryptocurrency to $55,000, large hodlers bought $1.6 billion worth of BTC in 5 minutes. And it’s no wonder.
- The 1000 BTC coin has become the most valuable numismatic item in the world. Back in 2011, an investor purchased a physical gold coin with a face value of 1000 BTC for $4,905 — since that time, it has increased in price by 9786 times and now costs more than ~ $51 million. The owner of the coin has transferred the most valuable numismatic item in the world to a bank vault, as he is optimistic about the long-term prospects of the first cryptocurrency.
- Bloomberg, in the course of its own investigation, stated that Tether had issued billions of dollars in loans to several companies, accepting Bitcoin as collateral. So the CEO of Celsius Network said that his company pays Tether interest at a rate of 5-6%. Of course, Tether refutes Bloomberg investigations. The issuer of the largest USDT stablecoin by capitalization said that Bloomberg’s previously published information on the issuance of multibillion-dollar loans secured in BTC is misinformation made up of fragments of old news from dubious sources, with which some people want to undermine the company’s authority. Tether declares that all USDT tokens are fully secured with the corresponding monetary equivalents. There have been no more updates so far. But it is very interesting how the carnage around USDT will end. Twitter has already split into two groups and is scribbling dozens of posts around this topic.
- Bravo! The SEC has approved an ETF for “Bitcoin revolution companies” that will give investors access to a number of companies such as Tesla, PayPal, MicroStrategy and Twitter. Volt Equity is a unique fund whose portfolio consists of 30 companies that hold large amounts of BTC on their balance sheet.
This is all the news, for now. We will continue to keep you informed of all the main events of the crypto market. This article is for informational purposes only and does not provide any financial advice. Stay tuned to our wallet, enjoy the usable interface and transaction security, and check back for updates and news on Twitter, Telegram, Facebook, TikTok and LinkedIn. Let’s learn the cryptocurrency market together step by step!