New all-time high for BTC
Last Sunday, the price of Bitcoin rose to ā¬106,200, setting a new record. It was only slightly higher than the previous all-time high, and the price quickly fell back down, so weāll need to see more before calling it a true breakout. In this edition of Bitvavo Market News, we'll also discuss the latest developments at Avalanche.
Market update
Bitcoin's price rose 10% last week, from ā¬95,500 to ā¬105,500. On Sunday, October 5th, the price briefly jumped to just above ā¬106,000, setting a new all-time high, albeit in pencil, so to speak. The difference between the highest prices on January 20th and August 14th is minimal. Weekend price movements are often noise rather than signal, therefore we only speak of a breakout above previous highs when the upward trend clearly continues.
Last week's rapid rise coincided with the start of October, fuelling the widely shared meme "Uptober," which implies that prices always rise in October, and that this yearās gains will be especially spectacular.
There is, however, no fundamental reason why October should always be a great month, in the same way that ice cream vendors always do best in the summer. There isnāt nearly enough data to make a statistically significant statement about all of Bitcoinās Octobers. Uptober is a fun meme, but nothing more.
That said, there are solid arguments for a few strong months ahead. Last week's rise suggests the correction since August 14th has ended. In line with the crypto market's rhythm, we're ready for a new period of growth, especially against the backdrop of governments and central banks worldwide continuing to support and stimulate their economies. An excellent starting point, all in all.
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Avalanche builds institutional image
When Avalanche was launched in 2020, it entered as a new contender in the battle for the fastest, cheapest, and most scalable blockchain. Avalanche promised lightning-fast transactions, low fees, and boasted an innovative consensus method.
But in recent years, Avalanche has taken a different path. Instead of continuing to position itself as an "Ethereum killer," the network is increasingly trying to establish itself as the blockchain network for institutional players. Think of banks, asset managers, and even governments. These are parties interested in DeFi or tokenization, but who want to operate within clear regulatory frameworks.
A good example of this are the so-called subnets: separate blockchains within the Avalanche ecosystem, designed for organizations with specific needs regarding compliance, scalability, or privacy. Partnerships with companies like Deloitte, Citi, and JPMorgan also underscore this institutional approach.
Still, there is a striking contrast. When you look at theĀ actual on-chain activity, a very different picture emerges. According to blockchain analytics firm Nansen, the vast majority of transactions on Avalanche come from activity on decentralized exchanges, trading bots, and memecoin speculation by deep-pocketed traders.
In other words: the image is institutional, but the engine remains retail.
Avalanche continues to build, though. Last week,Ā the launch of Avalanche Treasury Co. was announced: a company that plans to go public on Nasdaq through a merger and which aims to acquire over $1 billion worth of AVAX tokens. Among the investors are well-known names such as Pantera, Galaxy Digital, and Dragonfly. The AVAX tokens are provided at a significant discount by the Avalanche Foundation, which means the foundation itself is also directly involved.
Avalanche Treasury doesn't intend to simply buy and hold tokens. The company wants to actively contribute to the ecosystem, for example by financing projects, building infrastructure, and helping companies tokenize assets. The intention is clear: Avalanche wants to demonstrate its potential as the backbone of the institutional crypto market.
Investors reacted cautiously positively to the news. In the past week, AVAX's share price rose 7%, from around $28 to over $30.
Other news
Vanguard opens the door to Bitcoin.Ā The world's second largest asset manager is considering giving clients access to Bitcoin ETFs - after years of saying "never". The shift is due to persistent client demand and a more accommodating regulatory environment. Bloomberg analyst Eric BalchunasĀ called the move smart and believes Vanguard CEO Salim Ramji is the driving force behind Vanguard's change of course; in his previous role, he was involved in establishing BlackRock's successful Bitcoin fund IBIT.
Trading in perpetuals on decentralized exchanges breaks records.Ā In September,Ā more than $1 trillion was traded for the first time - almost 50% more than in August. The growth is mainly due to newcomers like Lighter on Ethereum and Aster on BNB Chain, which dethroned Hyperliquid. Aster alone generated $576 billion in volume and is now considering launching its own blockchain network.
Abu Dhabi builds own blockchain for a dirham stablecoin.Ā Investment giant IHC (market value $240 billion) is financing the launch of ADI Chain, a second-layer network on Ethereum which should serve as the basis for the digital dirham. WithĀ more than 50 projects in the pipeline, from payments to digital identities, Abu Dhabi aims to bring its financial system on-chain, under the supervision of the central bank.
Eric Trump predicts an 'incredible' fourth quarter.Ā In an interview, the self-styled oracle said that āthe future is incredibleā and that Q4 will be āunbelievable,ā with Bitcoin possibly going āto a millionā. Itās not the first time the Trump scion has acted as a financial influencer. Critics see this primarily as self-serving: Trump has a vested interest in higher share prices, including through his World Liberty Finance project. This message fits seamlessly into the media circus surrounding the Trump family.
Satoshi Radio: In oktober vliegt de bitcoinprijs omhoog, zegt men. Vandaar, Uptober. Is het een meme, of zit er iets substantieels achter? De gestegen bitcoinprijs wekt de suggestie van wel. In de marktupdate vanĀ de laatste aflevering van Satoshi Radio meer hierover. Daarnaast nemen we het laatste nieuws door, met een waarschuwing voor Ledger-brieven, de introductie van de Bitcoin Dollar (BTD), Vanguard zān ommezwaai naar bitcoin, en het failliet van de Amerikaanse overheid.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.