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In today’s cryptocurrency updates, the CEO of Stripe claims that stablecoins will compel banks to provide users with genuine interest on deposits, US-listed spot Bitcoin exchange-traded funds (ETFs) commenced October with billions in capital inflows, and a crypto executive forecasted that the Bitcoin price cycle will persist.
Stripe CEO asserts stablecoins will compel banks to provide users with attractive interest on deposits
Stripe’s CEO Patrick Collison stated that stablecoins will necessitate banks to provide attractive interest rates to clients due to the emergence of yield-generating stablecoin alternatives.
Collison highlighted the average savings rates for customer deposits in the United States and Europe, which remained significantly under 1%, as vulnerable to disruption by stablecoins. He expressed:
“Depositors are going to, and should, earn something nearer to a market return on their capital. Some lobbyists are actively advocating post-GENIUS to further limit any type of rewards linked to stablecoin deposits. The business necessity here is obvious — inexpensive deposits are beneficial, but being overly unfriendly to consumers seems to me like a losing strategy.”
The stablecoin market capitalization exceeded $292 billion in October, according to statistics from RWA.XYZ, as the sector continued to expand following a comprehensive regulatory bill enacted in the United States.
Bitcoin ETFs launch “Uptober” with $3.2 billion in second-highest week on record
US-listed spot Bitcoin ETFs kicked off the traditionally bullish month of October with their second-highest week of inflows since inception, indicating renewed investor positivity.
Spot Bitcoin (BTC) ETFs saw $3.24 billion in total net positive inflows over the past week, closely approaching their record of $3.38 billion in the week concluding on Nov. 22, 2024, according to data from SoSoValue.
This figure represents a significant recovery from the previous week’s $902 million in outflows. Analysts attributed the turnaround to increasing expectations of another US interest rate cut, which has enhanced sentiment towards risk assets.
Heightened expectations of a subsequent US interest rate decrease triggered a “shift in sentiment,” drawing renewed investor interest in Bitcoin ETFs, “resulting in four-week inflows nearing $4 billion,” Iliya Kalchev, dispatch analyst at digital asset platform Nexo, informed Cointelegraph. “At current flow rates, Q4 inflows could remove over 100,000 BTC from circulation — more than double new issuance.”
“ETF absorption is quickening while long-term holder distribution diminishes, assisting BTC in establishing a firmer foundation,” near crucial technical support levels, he added.
Sustained ETF inflows may provide substantial support for Bitcoin throughout October, recognized as the second-best month for Bitcoin regarding average historical gains, often termed “Uptober” by crypto enthusiasts.
This week’s $3.2 billion momentarily elevated Bitcoin’s price above $123,996 on Friday, hitting an over six-week peak last observed on Aug. 14 for the world’s pioneering cryptocurrency, according to TradingView data.
“Highly likely” Bitcoin cycle will persist in some form: Gemini executive
Although Bitcoin’s four-year cycle may not manifest precisely as it did previously, that does not imply the theory is completely defunct, as stated by a crypto executive.
“I believe that regarding the four-year cycle, the reality is that it’s very likely we’ll continue to observe some form of a cycle,” Saad Ahmed, head of the APAC region at crypto exchange Gemini, conveyed to Cointelegraph during a discussion at Token2049 in Singapore.
“It ultimately originates from individuals becoming very enthusiastic and overextending themselves, and then you observe a crash, followed by a correction to an equilibrium,” Ahmed noted.
Nevertheless, Ahmed remarked that increased institutional participation in the crypto space could mitigate some of the volatility. “You’ll see some volatility, flattening out, but you’ll still notice some type of a cycle, since ultimately, it’s driven by human emotion,” Ahmed stated.
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