Bitstamp Monthly Briefing – October 2024

October set the stage for exciting shifts in the crypto landscape.

The market grew, Bitcoin’s dominance went up, and a few standout assets made strong moves. In this update, we’ll break down the month’s biggest movers, share Bitstamp’s new regulatory milestone, and look at what’s coming in November.

Let's jump in.

Market update

The total crypto market cap grew by 5.8% month-over-month, reaching $2.31 trillion by the end of October. Trading volume on the leading crypto spot exchanges we monitor saw a 24% increase during this period.

BTC's market dominance rose by 2.85 percentage points month-over-month to 60.4%.

Source: Total crypto market cap, Bitcoin dominance

Past performance is not a reliable indicator of future results. The performance of crypto assets can be highly volatile. Data taken on November 1, 2024.

Best performing CMC 100 assets in October

• +74.7% Raydium (RAY) – Price gains were driven by strong momentum, a surge in trading activity, and a milestone in fee generation, as Raydium surpassed Ethereum in 24-hour fees on October 21.
• +64.8% Popcat (SOL) (POPCAT) – Continued bullish momentum, reaching a new ATH in October.
• +57.8% cat in a dog's world (MEW) – MEW surged to an all-time high of $0.011 as buyers led the market.

Worst performing CMC 100 assets in October

• -32.8% Arweave (AR) – Price declined after failing to breach and sustain support at the $20 level.
• -28.8% Immutable (IMX) – A token unlock at the beginning of the month contributed to an already weak trend.
• -28.0% Kaspa (KAS) – The price corrected after reaching an ATH in August, and failing to hold $0.18 at the start of October.

Past performance is not a reliable indicator of future results. The performance of crypto assets can be highly volatile. Data taken on November 1, 2024.

Key macro & crypto events in November 2024

• November 7: Fed Interest rate decision & press conference
• November 7-9: DeFi Security Summit 2024 (Devcon 7) in Bangkok, Thailand
• November 8-9: The Staking Summit in Bangkok, Thailand
• November 8-9: NiceHashX Bitcoin Conference in Maribor, Slovenia
• November 13: US Inflation & Core Inflation rate
• November 13: Governing Council of the ECB in Frankfurt, Germany
• November 15-17: Adopting Bitcoin in San Salvador, El Salvador
• November 18-20: Madeira Blockchain Conference in Madeira, Portugal
• November 20: Blockchain Africa Conference in Pretoria, South Africa
• November 20-21: European Web3 Summit in Brussels, Belgium
• November 20-22: North American Blockchain Summit in Dallas, Texas, USA
• November 23-24: Australian Crypto Convention in Sydney, Australia
• November 27: Governing Council of the ECB (hybrid format in Frankfurt & virtual)

Raising the standards in the crypto market with MiFID MTF license

We’re thrilled to announce that we recently achieved a significant milestone after being awarded a MiFID Multilateral Trading Facility (MTF) license. This license reflects our commitment to compliance, transparency, and investor protection, setting a new standard in the crypto industry.

Let’s talk more about why this matters and how the license will allow Bitstamp to offer more sophisticated products to its institutional and retail customers.

The addition of this license means that Bitstamp now operates under the same regulatory framework as established financial institutions in the European Union, further establishing us as a credible and secure choice for crypto investments. Our clients can trust in our commitment to the highest standards of regulatory compliance at every stage, giving them the confidence to invest with the same security they would expect from traditional financial services.

This milestone allows us to offer a wider array of products, including tokenized assets and regulated financial instruments. Crucially, Bitstamp is now authorized to offer regulated crypto derivatives products, including perpetual swaps, in the EU. Coupled with Bitstamp’s highly efficient spot exchange, these products can provide investors with the opportunity to maximize capital efficiency when trading and gain exposure to crypto without the need for direct ownership. In line with MiFID MTF’’s investor protection standards, our products are increasingly aligned with our users’ financial goals.

The regulatory rigor of MiFID MTF also enhances our operations, aligning our compliance framework with its standards for best execution and reporting. Our operational improvements lead to a more consistent, performance-oriented service that’s designed to ensure the highest standards in the financial industry.

Finally, this new licensing is more than just a regulatory upgrade. It’s a step toward future-proofing Bitstamp as Europe’s regulatory landscape continues to evolve. With legislation like the Markets in Crypto-Assets (MiCA) regulation, our MiFID MTF license positions us to seamlessly adapt to future changes, ensuring we can continue offering compliant, cutting-edge solutions in the crypto space.

Recommended reads

Is Bitcoin Repeating Previous Bull Cycles? by Bitcoin Magazine Pro

Bitcoin's current price movement shows strong similarities to past cycles, hinting at a potential new rally after a consolidation period. By comparing recent trends with previous cycles (notably 2011-2013 and 2015-2017), analysts see a pattern that could lead to another surge, possibly a double peak similar to 2013. Key metrics like the MVRV Z-Score and Value Days Destroyed indicate investor behaviors reminiscent of past bull runs, supporting the case for a breakout. With historical trends pointing to a possible year-end price near $140,000, or a more gradual rise to $90,000-$100,000 by early 2025, Bitcoin’s outlook remains bullish, suggesting significant price movements ahead.

When Should You Sell by The Wolf Den

While dollar-cost averaging (DCA) is widely recognized as an effective buying strategy, many overlook the equally crucial selling component. Most investors focus on buying fixed dollar amounts to accumulate shares at an optimal average cost, but they often sell in dollar amounts as well, which can unintentionally erode returns. A more effective strategy involves selling in fixed units instead, allowing for a balanced average sale price that captures greater value at higher prices. By using this unit-based selling method, investors can optimize returns and avoid the pitfalls of market timing, creating a disciplined approach that can significantly impact long-term gains.

Macro Clouds on the Horizon by Alf from the Macro Compass

The author critiques the unsustainable economic models of Europe and the United States, highlighting Europe's stagnation and the U.S.'s reliance on debt-fueled growth. Europe faces low growth expectations, structural issues in infrastructure, productivity, and innovation, and an aging population, which together create a bleak economic outlook. Meanwhile, the U.S. has seen impressive nominal GDP growth since 2020, but it’s largely fueled by increased federal and private debt rather than organic growth, raising concerns about the sustainability of this model. The piece suggests that investors should prepare portfolios to withstand potential long-term economic instability in both regions.

The Investment Case for Bitcoin by VanEck

Bitcoin, often dubbed "digital gold," shares key attributes with gold, such as scarcity and potential as a store of value, while offering unique advantages like divisibility, transparency, and immunity from inflationary pressures. With a fixed supply cap of 21 million and periodic "halving" events reducing supply growth, Bitcoin’s value may continue to rise as adoption expands globally, exemplified by El Salvador's adoption of Bitcoin as legal tender. Its decentralized and limited supply structure makes Bitcoin an attractive hedge against inflation, particularly as traditional fiat currencies face devaluation. Enhanced infrastructure, such as Layer 2 solutions like the Lightning Network and the RGB protocol, boosts Bitcoin’s utility, supporting microtransactions and enabling digital asset issuance on the blockchain. Despite high volatility, Bitcoin’s impressive historical performance and diversification potential have drawn institutional interest, suggesting it could outperform as a long-term investment and hedge.

No information in this blog is intended to provide any personal investment services or advice nor is it an investment recommendation. Clients are responsible for making their own investment decisions. Bitstamp accepts no responsibility for any damage and/or loss arising from the use of information provided herein. Past performance is not necessarily an indicator of future results. Please consider your individual position and financial goals before making an independent investment decision.

Bitstamp is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Licensed as a Money Transmitter by the New York State Department of Financial Services.

Not offered in the following states: Hawaii and Nevada

Bitstamp UK Limited is registered with the UK's Financial Conduct Authority. Please read the Risk Warning Statement before investing. Cryptoassets and cryptoasset services are not regulated by the Financial Conduct Authority. You are unlikely to be protected if something goes wrong. Your investment may go down as well as up. You may be liable to pay Capital Gains Tax on any profits you earn.