Crypto News: Market Update October 2023
In October, Callisto Capital had its most successful month to date, achieving a return of over 10%. Bitcoin also performed remarkably well, with a return of nearly 30%. This impressive performance in the cryptocurrency market was driven by the following financial events.
October 3: Sam Bankman-Fried stands trial for one of the largest financial fraud cases in U.S. history.
Sam Bankman-Fried, former CEO of FTX and a prominent figure in the crypto industry, is standing trial in New York for large-scale financial fraud. He faces seven serious charges, including wire fraud, securities fraud, and money laundering, related to the collapse of his crypto empire and the misuse of customer funds. A conviction could result in over 100 years in prison. The trial, which lasts six weeks, includes testimony from witnesses such as former employees and his ex-girlfriend. The article outlines how Bankman-Fried, once seen as a crypto titan, ultimately fell due to financial troubles and fraud. (Source: CNBC)
October 6: major Dutch cryptocurrency companies scored a legal victory against the Dutch Central Bank (DNB).
Major Dutch cryptocurrency companies, such as Bitvavo and Coinmerce (the successor to Binance in the Netherlands), achieved a partial legal victory in their fight against the $2.3 million in regulatory fees paid in 2021. A Rotterdam court ruled that De Nederlandse Bank (DNB) had improperly required companies to pay for anti-money laundering registration. The court determined that DNB had acted outside the regulations established by the EU for anti-money laundering. This ruling does not affect the fees paid for 2020, and a separate case is ongoing regarding the costs incurred in 2022. (Source: CoinDesk)
9 October: Bitstamp began discussions with European banks interested in integrating cryptocurrency into their operations.
Bitstamp engaged in discussions with three major European banks to offer cryptocurrency services in the first quarter of the coming year. This move reflects growing confidence in digital assets, supported by the European MiCA regulatory framework. In contrast, the tightening of crypto regulations in the US has made companies more cautious, prompting them to consider moving operations elsewhere. Bitstamp’s regulated perpetual swap product has also gained popularity in Europe. The cryptocurrency exchange has seen an increase in customers following the collapse of FTX and regulatory issues faced by Binance. (Source: CoinDesk)
October 10: former Alameda CEO Caroline Ellison was ordered to testify in the case against Sam Bankman-Fried (SBF).
Caroline Ellison, former CEO of Alameda Research, testified that she committed fraud under the direction of her ex-boyfriend and former colleague, FTX founder Sam Bankman-Fried. She admitted to sending false balances on Bankman-Fried’s instructions to conceal risks from investors and revealed the use of FTX customer funds for political donations and investments. Her testimony sheds light on the decision-making that led to the collapse of FTX and the financial crimes that occurred. (Source: CoinDesk)
October 11: Producer Price Index (PPI) Higher Than Expected
U.S. producer prices rose more than expected due to higher energy and food costs. Experts indicate that the Fed is not yet done combating inflation, particularly since much of the inflation in producer prices is driven by food and energy prices, which are less influenced by monetary policy. This will likely impact the Federal Reserve’s interest rate decision on November 1, 2023. Despite rising interest rates, the economy continues to grow, with 336,000 new jobs added in September. Service costs also increased, though some prices declined. (Source: Reuters)
October 12: Consumer Price Index (CPI) Rises Slightly More Than Expected
In September, consumer prices increased by 0.4% month-over-month and 3.7% year-over-year, slightly higher than expected. The core CPI, excluding food and energy, rose as anticipated by 0.3% month-over-month and 4.1% year-over-year. Rising housing costs were a significant contributor to the inflation. Service prices, which are crucial for long-term inflation, increased by 0.6%. The Federal Reserve will consider these figures when determining upcoming monetary policy decisions. (Source: CNBC)
October 16: Cointelegraph helped spread false news about the approval of the BlackRock iShares Bitcoin ETF.
Bitcoin surged sharply after Cointelegraph claimed that BlackRock’s Bitcoin ETF application had been approved. However, BlackRock soon denied that the SEC had approved their ETF application, causing the price to return to its previous level. The market reacted nervously to ETF news, as many investors are awaiting the approval of various spot Bitcoin ETFs. (Source: Reuters)
October 19: The SEC dropped the case against Ripple CEO Brad Garlinghouse and co-founder Christian Larsen.
The U.S. Securities and Exchange Commission (SEC) dropped the charges against Ripple Labs executives in their lawsuit accusing Ripple of raising over $1.3 billion through an unregistered securities offering. (Source: Bloomberg)
October 19: Jerome Powell Gives a Speech at the Economic Club of New York Meeting
Federal Reserve Chairman Jerome Powell acknowledged that inflation remains too high but did not provide indications of upcoming rate hikes. He emphasized the goal of bringing inflation down to 2% and warned that this might require a period of below-average growth and further easing in the labor market. The Fed has repeatedly raised interest rates through September to control inflation. Powell stated that the central bank will proceed cautiously and make policy decisions based on current data and conditions. (Source: CNBC)
October 24: Bitcoin Reaches Highest Value of 2023
Bitcoin surged nearly 10% to surpass $35,000, reaching its highest level in nearly 18 months. This increase was fueled by speculation surrounding the approval of a Bitcoin exchange-traded fund (ETF). Additionally, crypto-related stocks, such as Coinbase Global and MicroStrategy, benefited from the positive market sentiment. (Source: Reuters)
October 27: Personal Consumption Expenditures (PCE) Index Rises as Expected
The core measure of Personal Consumption Expenditures (PCE) increased by 0.3% in September, in line with expectations. At the same time, personal consumption rose by 0.7%, exceeding forecasts. The Federal Reserve focuses on core inflation and anticipates it will decrease as demand slows. Market reactions were muted, with the likelihood of an interest rate hike at the upcoming central bank meeting considered very low. (Source: CNBC)
Conclusion
Ongoing inflation and Bitcoin’s impressive performance, with a nearly 30% increase over the month, are drawing attention. Meanwhile, the Bank of Canada and the European Central Bank maintained their interest rates, suggesting that the Federal Reserve is likely to follow a similar course. These factors caused some turmoil in the stock markets, with a nearly 2% decline. In this context, we highlight that Callisto Capital achieved a return of over 10% last month. Check out our updated chart on the homepage for a comparison with traditional benchmarks.
