MS Morgan Stanley

Bitcoin surges with China’s stimulus and US election support

Bitcoin (COIN:BTCUSD) reached an intraday high of $66,296, with strong support at $63,500. Currently priced at $65,765, up 4.6% in the last 24 hours, Bitcoin has boosted positive sentiment among traders.

Data shows over $193 million in leveraged positions were liquidated in the last 24 hours, as short traders were caught off guard by Bitcoin’s rally, further reinforcing the market’s bullish momentum.

The Shanghai Composite Index rose on Monday, with the announcement of Chinese stimulus plans boosting risk sentiment, despite disappointing investors with a lack of details.

In the US, official support for cryptocurrencies from Kamala Harris and Donald Trump also improved sentiment. Harris proposed a regulatory framework to protect small investors, particularly Black men, while Trump promised to transform the US into the “world capital of cryptocurrencies.”

Retail participation in the market remains weak, and Bitcoin ETF flows show mixed results, reflecting market indecision. Despite this, analysts see potential for a stronger BTC recovery, with the next target at $66,894. This milestone would further consolidate its upward trend throughout 2024, with the Federal Reserve and US elections possibly impacting the market in the coming weeks.

Avalanche Foundation repurchases tokens sold to Luna Foundation for $45.5 million

The Avalanche Foundation plans to repurchase 1.97 million AVAX tokens (COIN:AVAXUSD) sold to the Luna Foundation Guard (LFG) for $45.5 million, despite their current value being $57.4 million. The agreement, filed in a Delaware Bankruptcy Court, is still awaiting approval. The buyback will protect the tokens from the complexity of Terraform Labs’ bankruptcy liquidation and return them to the Avalanche Foundation, which supports the Avalanche blockchain. The collapse of the Terra ecosystem resulted in significant losses, with USTC plummeting in value.

$500 million token unlock may impact prices this week

Around $500 million in tokens, including $80 million in Worldcoin (COIN:WLDUSD) and $51 million in Arbitrum (COIN:ARBUSD), will be unlocked this week, potentially pressuring prices. Solana will see $80 million in (COIN:SOLUSD) unlocked in an ongoing plan. The market may react with preemptive selling, but positive sentiment could stabilize prices if the tokens are used for governance or seen as progress in their projects.

Sui faces insider sales allegations after 100% rally

Sui Network’s token (COIN:SUIUSD) has surged over 100% in the past month but is facing insider sales allegations, with insiders reportedly selling $400 million in tokens during the rally, according to Cointelegraph. Analysts warn that these sales could negatively pressure the price. With $114 million in Sui tokens expected to be unlocked on October 23, selling pressure may increase, raising concerns among investors despite the token’s optimistic momentum.

Samara Asset Group plans to increase Bitcoin holdings with €30 million bond issuance

Samara Asset Group (TG:SRAG) is issuing a $32.8 million (€30 million) bond to expand its Bitcoin holdings and disruptive technology funds. CEO Patrick Lowry stated that the company, which already holds around 421 BTC, aims to increase its reserves to 1,000 BTC by the end of the year. Founded by Mike Novogratz, Samara uses Bitcoin as its primary treasury reserve asset and seeks to strengthen its liquidity position with bond proceeds.

Energy policies boost Bitcoin mining stocks

Mathew Sigel, head of research at VanEck, shared that Morgan Stanley (NYSE:MS) advised CIOs to consider Bitcoin mining stocks. New opportunities arise with policies requiring data centers to have their own energy generation, favoring cryptocurrency mining. AI infrastructure and mining align with this energy transition, making the sector a target for investment.

According to Jefferies (NYSE:JEF), Bitcoin mining profitability decreased in September, with average revenue per exahash dropping by 2.6% while the hash rate rose by 1.7%. Despite a slight 5% increase in Bitcoin’s price, the hash rate continued to grow, making operations challenging in October. North American mining companies, such as Marathon Digital (NASDAQ:MARA) and CleanSpark (NASDAQ:CLSK), increased their participation, representing 22.2% of the network, benefiting from cooler temperatures and better uptime.

Monochrome launches Australia’s first spot Ether ETF

Monochrome will launch Australia’s first spot exchange-traded fund (ETF) for ether (ETH), the Monochrome Ethereum ETF (IETH), on Tuesday at 10 a.m. local time. Following the success of its Bitcoin spot ETF, the IETH will allow investors to buy and redeem directly in ether. The launch follows the global trend of expanding cryptocurrency ETFs, with notable growth in Hong Kong and US markets.

$407 million in crypto product inflows driven by US elections

Cryptocurrency investment products saw $407 million in inflows, according to CoinShares. James Butterfill, head of research, attributes the growth to political developments, especially the US elections, with Republicans seen as favorable to digital assets. Bitcoin (COIN:BTCUSD) led with $419 million in inflows, while altcoins like Solana (COIN:SOLUSD), XRP (COIN:XRPUSD), Litecoin (COIN:LTCUSD), and Tron (COIN:TRXUSD) also attracted investors. In contrast, Ethereum-based products (COIN:ETHUSD) saw outflows of $9.8 million.

Kamala Harris to address cryptocurrency regulation in new economic agenda

Vice President Kamala Harris’ campaign announced today that she will introduce a regulatory framework for cryptocurrencies during a campaign speech in Pennsylvania. Part of her “Opportunity Agenda,” the proposal aims to protect investors, especially Black men, who are increasingly present in the digital asset market. Harris highlights the importance of ensuring that all participants benefit from these financial innovations.

Trump launches DeFi project to raise $300 million

Donald Trump is set to launch the decentralized finance project World Liberty Financial, aiming to raise $300 million through token sales. While Trump’s direct involvement in launching a coin remains debated, the project already has 100,000 investors on the whitelist. Uncertainty remains about whether this will be considered a “coin launch” ahead of the 2024 election.

Copper Technologies appoints Amar Kuchinad as new CEO in US expansion strategy

Crypto custodian Copper Technologies has hired Amar Kuchinad, a former Goldman Sachs (NYSE:GS) executive, as CEO, replacing Dmitry Tokarev, who will now serve as founding director. The company, focused on attracting traditional financial institutions and expanding in the US market, is pursuing licenses like New York’s BitLicense. Tokarev, the largest shareholder, will lead the transition alongside Kuchinad, who will split his time between New York and London. Copper processed $121.2 billion in digital transactions in July.

TD Bank pays $3 billion in fines over cryptocurrency ties

US-based TD Bank (NYSE:TD) agreed to pay over $3 billion in fines for failing to monitor money laundering. According to FinCEN, more than $1 billion in wire transfers were linked to two cryptocurrency firms in Colombia and the UK. The “C Client Group” facilitated high-risk transactions, deviating from original documentation. TD Bank closed its cryptocurrency unit in 2023 after sector collapses.

Brit sues Welsh council for lost hard drive with 8,000 bitcoins

James Howells, 39, is suing Newport City Council in Wales for $646 million (£495 million) after years of unsuccessful attempts to recover a hard drive he accidentally discarded in 2013 containing 8,000 bitcoins. The value, now equivalent to $527 million, was $1 million at the time. Howells proposed a $13 million excavation to retrieve the disk, which the council refused due to environmental concerns.

Armor Wallet launches AI-powered crypto wallet to simplify investments

Armor Wallet unveiled an innovative cryptocurrency wallet powered by AI, making it easier to invest in digital assets. Through a simple chatGPT-like text interface, users can type their buy, sell, and other instructions without needing to understand financial jargon. The AI automatically executes transactions, providing both beginners and experienced traders with a simplified and efficient trading experience available 24/7.

Solv Protocol raises $11 million to expand Bitcoin staking

Bitcoin staking platform Solv Protocol raised $11 million at a $200 million valuation, with participation from Blockchain Capital and OKX Ventures. The SolvBTC product holds over 20,000 BTC in staking, equivalent to $1.3 billion, across 10 blockchain networks. According to co-founder Ryan Chow, Bitcoin staking’s growth potential is massive, with the possibility of unlocking up to $330 billion in value if participation rates match those of Ethereum.