Bitcoin (BTC) surged to nearly $64,000 in early Asian hours today, marking a 3% rise ahead of a critical week filled with U.S. economic data. Investors are closely monitoring the release of the Federal Reserve’s FOMC minutes and key indicators from September, including the CPI and PPI, which are expected to provide insights into inflation trends and the overall health of the U.S. economy. This rally triggered a market-wide rise, with major tokens like Ethereum (ETH) and Dogecoin (DOGE) up 4%, while the frog-themed memecoin, Pepe (PEPE), surged 14%. Discussions on social media app X about a potential “memecoin supercycle” further fueled these gains, with Solana-based POPCAT and Ethereum-based MOG rising over 12%, and BNB Chain’s Simon’s Cat (CAT) up 10%, reflecting growing enthusiasm for riskier assets among traders.
Amidst these positive developments, it’s important to note that Bitcoin (BTC) dropped to $60,000 last week as the conflict in the Middle East escalated, pushing oil prices higher. However, the $60,000 level acted as strong support, helping BTC rebound throughout the week. As geopolitical tensions remain high, further escalation could trigger a correction for Bitcoin, which is still considered a risky asset.
On the crypto front, Bittensor’s TAO led gains among mid-cap tokens with a 14% rise, driven by growing interest in artificial intelligence (AI) tokens. The broader AI category on CoinGecko climbed 7.5%, with tokens like NEAR and Internet Computer (ICP) also seeing strong performance as AI continues to attract investor attention.
In regulatory news, Coinbase announced plans to delist Tether’s USDT by December 30, 2024, in response to the European Union’s new Markets in Crypto-Assets (MiCA) regulations. Tether has yet to secure the necessary e-money license in an EU member state, prompting this move. Coinbase will offer alternatives like Circle’s USDC for users to transition their holdings. Additionally, SWIFT revealed plans to begin digital asset trials in 2025, focusing on transactions involving multiple digital currencies and assets. On the Ethereum front, a new Ethereum Improvement Proposal (EIP-7781) aims to reduce block times by 33%, increasing data capacity and throughput by 50%. This comes just days after Vitalik Buterin discussed lowering the minimum stake required to become a validator from 36 ETH to as low as 16 ETH, in a bid to further decentralize the network. Meanwhile, NFT sales have rebounded, with the highest weekly volume since August, reaching $84.9 million between September 30 and October 6. Additionally, the UAE has announced a VAT exemption for all crypto transactions, retroactive to 2018, adding to the region’s appeal as a global crypto hub. These developments highlight an evolving market, with growing institutional engagement and increasingly clear regulatory frameworks as we approach the year-end.
