Bitcoin falls below $71,000 after PCE data, while Ethereum sees sharp drop
Bitcoin (COIN:BTCUSD) fell below $71,000 late Thursday morning, trading at $70,360, a 2.8% drop over the last 24 hours. This movement was in response to September’s Personal Consumption Expenditures (PCE) index data, which did not spur any expected rise in the crypto market.
US inflation rose slightly in September, with the PCE index increasing 0.2% and the annual rate at 2.1%, aligning with Federal Reserve targets. Service prices grew 0.3%, while goods fell 0.1%. The core rate excluding food and energy was 2.7%. U.S. jobless claims dropped to 216,000, a 12,000 decrease from the previous week, aligning with May levels and below expectations of 230,000.
Despite the drop, Bitcoin still shows a 16.3% rise in October. Meanwhile, Ethereum (COIN:ETHUSD) saw a 7.2% increase in October. Despite a lack of ETF interest, analysts believe ETH has already had its “final drop” and could recover, especially if current levels hold.
Ethereum, which outperformed Bitcoin on Wednesday, is showing a sharper decline today than the main cryptocurrency. Ether is down -5.1% in the last 24 hours, priced at $2,523.
Growth of Bitcoin and Ethereum ETFs on October 30
On October 30, Bitcoin ETFs saw another strong day of inflows, totaling $893.21 million. BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) led with $872.04 million, followed by Fidelity’s Wise Origin Bitcoin Fund (AMEX:FBTC) with $12.57 million. Meanwhile, Ethereum ETFs saw smaller inflows, totaling $4.36 million.
MicroStrategy reports Q3 loss and $42 billion Bitcoin acquisition plan
MicroStrategy (NASDAQ:MSTR) reported a Q3 loss of $1.56 per share, higher than the expected $0.12, with revenue of $116.1 million, below the projected $121.45 million. Total revenue fell 10.3% year-over-year, impacted by a 53.9% drop in product licenses. Its Bitcoin holdings yielded a 5.1% return.
MicroStrategy also announced a “21/21 plan” to raise $42 billion over the next three years, intending to acquire more Bitcoin. The plan will include $21 billion in stock and $21 billion in fixed-income securities.
On October 21, comments from MicroStrategy co-founder Michael Saylor on Bitcoin custody sparked controversy, dividing the crypto community between advocates of self-custody and institutional custody supporters. Saylor suggested entrusting assets to “too-big-to-fail” banks, prompting negative reactions, including criticism from Ethereum co-founder Vitalik Buterin.
The debate reflects a broader tension over balancing Bitcoin’s decentralization with growing institutional interest. Experts warn that institutional custody could threaten self-sovereign philosophy but may coexist with self-custody options.
Tron switches to Chainlink to boost its DeFi ecosystem
Tron DAO announced its shift from the WinkLink oracle provider, adopting Chainlink’s Data Feeds for its DeFi applications. This will allow platforms like JustLend and JustStable, which hold over $6.5 billion in total locked value, to access more reliable price data. The partnership aims to accelerate the growth of Tron’s DeFi ecosystem, initially covering some Chainlink operating fees, while founder Justin Sun sees significant opportunities for Tron-based assets and stablecoins.
Crypto.com acquires Watchdog Capital to expand financial services
Crypto.com announced the acquisition of Watchdog Capital, an SEC-registered broker, allowing it to offer stocks and stock options to qualified traders in the U.S. Watchdog, founded by Bruce Fenton, is a member of FINRA and SIPC. Crypto.com CEO Kris Marszalek highlighted the intent to integrate traditional financial tools with digital assets. The acquisition comes after the exchange filed a lawsuit against the SEC, challenging its jurisdiction expansion. With over 100 million users, Crypto.com seeks to diversify services after suspending U.S. operations in June.
Bitget Wallet Lite gains millions of Telegram users
Bitget Wallet, by the Bitget exchange, officially launched its multichain wallet, Bitget Wallet Lite, integrated with Telegram, quickly attracting six million users in just three days. The growth is driven by reward campaigns and strategic partnerships. Despite its popularity, Bitget warns users about phishing risks in Telegram Mini Apps, recommending verification of official accounts with the blue verification tag.
Changpeng Zhao receives warm welcome; Binance partners with AWS to enhance user experience
Changpeng Zhao, former Binance CEO, received a warm reception as he returned to the crypto scene after his release from prison. During Binance Blockchain Week in Dubai, he shared his prison experience, reflecting on freedom and personal connections. Though he has no immediate plans to return to exchange leadership, Zhao announced his dedication to the educational project Giggle Academy, which aims to provide access to educational resources.
In Binance’s latest update, the exchange announced it is using Amazon Web Services (AWS) and its generative AI tools to optimize the user experience. Through this partnership, Binance aims to simplify onboarding, improve customer support, and automate internal diagnostics. With a focus on Know Your Customer (KYC) processes and issue resolution, Binance highlighted significant operational improvements, including a 95% increase in user information recognition rates.
Riot Platforms seeks partnerships with blue-chip AI companies
Jason Les, CEO of Riot Platforms (NASDAQ:RIOT), revealed growing interest from “blue-chip” companies in partnerships with the Bitcoin miner for artificial intelligence (AI) and high-performance computing projects. During the earnings call, Les mentioned Riot received several offers to secure significant energy capacity. He highlighted the company’s reputation and energy capacity attract these proposals. Additionally, Riot saw an increase in net loss in Q3 despite record revenue of $80 million.
2024 U.S. election and the cryptocurrency sector
The 2024 U.S. presidential election could significantly impact the cryptocurrency market. A victory by Vice President Kamala Harris raises concerns, but also some expectations for positive changes. While some analysts believe her administration could boost Bitcoin, others fear regulatory uncertainty. The SEC’s “regulation by enforcement” approach under the Biden administration has created uncertainties, leading many in the industry to consider relocating to countries with more favorable regulations.
Meanwhile, Donald Trump’s cryptocurrency company, World Liberty Financial, reduced its fundraising target from $300 million to up to $30 million, after WLFI token sales fell short of expectations. Since its launch, the company raised just over $14 million. Additionally, Trump’s DT Marks DEFI LLC will only receive revenue once World Liberty meets the new target. The WLFI token, lacking value appreciation mechanisms, faces weak demand, raising viability concerns.
Asia surpasses North America in crypto development talent
A recent report reveals Asia has surpassed North America as the leader in cryptocurrency and blockchain development talent, indicating growing blockchain adoption in the region. Asia’s share of developers grew to 32% in 2024, compared to 13% in 2015, while North America’s share declined from 44% to 24%. Despite this, the U.S. still has the highest absolute number of developers, at 18.8%, followed by India and the UK.