TL;DR
- Bitcoin rally: Despite the US government shutdown delaying economic data and SEC reviews, Bitcoin surged past $120,000 at the start of “Uptober,” continuing its six-year streak of October gains and outperforming traditional markets.
- Brazil mining push: Brazilian energy firms, facing nearly 70% surplus output, are negotiating with miners to stabilize the grid, positioning the country as a potential hub in contrast to China and Thailand’s restrictive stances.
- Global regulation: New York advanced new mining taxes while Europe tightened restrictions on private stablecoins, accelerating efforts toward a digital euro and euro-pegged stablecoin initiatives.
Despite the federal government shutdown in the U.S., Bitcoin began October with renewed momentum, mostly due to key developments abroad. The start of “Uptober” saw BTC pushing through the $120,000 level, regardless of governmental shutdown and lack of key economic data. Brazil, on the other hand, has presented itself as a strong ally for crypto miners.
Bitcoin Surges Despite US Shutdown
The US government shutdown, triggered by lawmakers’ failure to reach a funding deal, has not dampened Bitcoin’s rally. Instead, the cryptocurrency outpaced traditional markets, which posted only modest gains. The shutdown also postponed the release of the nonfarm payroll report, a critical indicator for Federal Reserve policy.
Analysts noted that Bitcoin has historically thrived in October, with six consecutive years of positive performance since 2018. The current standoff, however, is expected to delay SEC reviews of altcoin ETF applications tied to Litecoin, Solana, and XRP.
Brazil Welcomes Crypto Miners
Bitcoin miners have found a strong ally in Brazilian energy companies, which are actively looking for miners to absorb nearly 70% surplus output. At press time, more than half a dozen are under negotiations, mirroring Laos’ strategy and its hydropower oversupply. Unlike China or Thailand, which are strongly against miners, Brazil sees them as the solution for stabilizing the Nation’s power grid, positioning the South American country as a potential crypto mining hub.
New York Pushes Mining Taxes
In contrast, New York lawmakers are tightening the screws on crypto mining. A new bill proposes a tiered excise tax ranging from $0.02 to $0.05 per kilowatt-hour, exempting only miners fully reliant on renewable energy. With the median cost of mining 1 BTC already above $70,000, the added burden could drive operators out of the state. The measure follows a two-year moratorium on fossil-fuel-powered mining that expired in 2024.
Legal and Regulatory Shifts Abroad
Elsewhere, Europe is cracking down hard on private stablecoins to advance its digital euro. The European Systemic Risk Board made recommendations to enforce stricter restrictions on non-EU stablecoins through Central banks. On the other hand, several major European banks announced their plans to launch Euro-based stablecoins. The European Central Bank recently signed multiple agreements to develop fraud detection and offline payment systems.
