Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. ETF Analyst Sparks Outrage: Bloomberg ETF analyst Eric Balchunas faced backlash after sharing a controversial excerpt claiming that Amazon Web Services (AWS) could shut down Ethereum.

2. Musk: Polymarket ‘More Accurate Than Polls’: Elon Musk endorsed Polymarket, a decentralized prediction market, as a more reliable forecasting tool than traditional political polls.

3. 📈Technical Analysis Masterclass - Bitcoin has been stuck between $60,000 and $70,000 for months. Watch UseTheBitcoin’s latest Youtube video “Bitcoin's WEIRD Movement- What's Really Going On?” to know why this is happening or join our Official Telegram Channel for more alpha!

4. Kalshi US Election Betting Goes Live: Following a legal victory over the Commodity Futures Trading Commission (CFTC), derivatives exchange Kalshi has made it legal to bet on U.S. election outcomes.

5. 21.co Partners With Crypto.com: Crypto.com and 21.co, the parent company of 21Shares, announced a partnership to enhance Bitcoin liquidity for 21BTC, an exchange-traded product targeting the Ethereum and Solana ecosystems.

6. 💡Feature of the Day - Tether Hits 350 Million Users: Tether, the issuer of the USD₮ stablecoin, celebrated reaching 350 million users in 2024, a 24% increase from the previous year.

   
   All this and more in today’s headlines!

📰 News Highlights:

ETF Analyst Sparks Outrage [Source][Source][Source][Source]

Bloomberg ETF analyst Eric Balchunas stirred controversy on Oct. 7 after sharing an excerpt from the book Bitcoin: Beginner’s Guide on X, which claimed that Amazon Web Services (AWS) could "shut down Ethereum" by turning off its cloud services.

The post quickly garnered backlash from the Ethereum community, with many calling it "blatant misinformation."

According to Ethernodes, 28.4% of Ethereum nodes use AWS, but this would not be enough to bring the network offline entirely.

Ethereum educator Anthony Sassano was one of the most vocal critics, accusing Balchunas of spreading “complete propaganda” and only deleting the post to avoid further criticism.

Consensys product manager Jimmy Ragosa also chimed in, calling the excerpt “the most propaganda-ridden paragraph ever.”

Despite the uproar, Balchunas opted to leave up portions of the post discussing Bitcoin while removing the Ethereum-related claims.

Musk: Polymarket ‘More Accurate Than Polls’ [Source]

Elon Musk, the billionaire behind X, recently endorsed the decentralized prediction market Polymarket as a more accurate tool for forecasting U.S. election results than traditional polling.

On Oct. 6, Musk pointed to the site’s betting markets, which showed former President Donald Trump leading Democratic candidate Kamala Harris by 3%.

Musk argued that since actual money is on the line, Polymarket’s predictions offer a more reliable gauge of public sentiment.

While prediction markets have gained traction, critics argue that financial incentives don't always reflect voters' true intentions.

 📈Technical Analysis Masterclass:

Bitcoin's WEIRD Movement- What's Really Going On?

Prolonged Sideways Movement

• 8-Month Range: Bitcoin has hovered between $60,000 and $70,000 for eight months, which is rare, especially in a bull market.

• Unusual for a Bull Market: Typically, bull markets feature more upward momentum, but Bitcoin has shown controlled, hesitant movement instead.

Is This a Bull Market?

• Consolidation & Support: While some see this as market uncertainty, Bitcoin remains above key support levels, leading analysts to still consider it a bull market.

Past Cycles Comparison

• 2019-2020 Pattern: Bitcoin experienced similar stagnation leading up to the halving event in May 2020, following its typical four-year cycle.

• Halving Impact: Historically, halvings lead to major upward trends after consolidation, and the next halving is already approaching.

Speculations on Market Manipulation

• Market Manipulation?: Some suggest that large holders ('whales') or institutions may be behind this price stability. However, broader external factors are likely influencing Bitcoin's price.

External Factors Affecting Bitcoin

• Regulatory Uncertainty: Ongoing regulatory concerns, particularly in the U.S., and potential interest rate hikes could be contributing to investor caution.

• Macroeconomic Conditions: Inflation, rising energy costs, and overall macroeconomic conditions are also key factors dampening enthusiasm.

Shift in Investor Sentiment

• Cautious Investors: Unlike past bull markets, there's less retail FOMO (fear of missing out). Many investors seem to be holding rather than buying aggressively, contributing to price stability.

Potential Catalysts for a Breakout

• Political Influence: A major upcoming catalyst could be the U.S. presidential election, especially if Donald Trump wins again. Political shifts could significantly impact market sentiment and regulatory policies, potentially driving Bitcoin's price higher.

• Institutional Endorsements: Figures like Michael Saylor and Elon Musk have historically moved the market with endorsements or purchases. Major institutional interest in crypto continues to grow, which could also be a driving force for future price increases.

Kalshi US Election Betting Goes Live [Source][Source][Source][Source]

For the first time, betting on U.S. political outcomes is now legal, thanks to derivatives exchange Kalshi’s victory in a recent court case.

On Oct. 7, Kalshi founder Tarek Mansour announced that users could legally bet on various aspects of the 2024 U.S. presidential election, including margin of victory and state outcomes.

This legal breakthrough follows Kalshi’s win over the Commodity Futures Trading Commission (CFTC), which initially tried to block election-related contracts on the platform.

Kalshi's victory paves the way for other platforms, including decentralized Web3 platforms like Polymarket, to expand into election betting.

21.co Partners With Crypto.com [Source][Source][Source][Source]

On Oct. 7, Crypto.com and 21.co, the parent company of 21Shares, announced a strategic partnership to improve Bitcoin liquidity for 21BTC, an exchange-traded product (ETP) targeting Ethereum and Solana ecosystems.

This partnership is set to enhance liquidity across multiple blockchains, allowing retail and institutional investors to put their idle Bitcoin to work.

21.co, known for its crypto exchange-traded funds (ETFs), including the ARK 21Shares Bitcoin ETF, aims to bolster its product offerings through this collaboration.

Crypto.com will provide liquidity services for 21BTC’s customers. The integration of Chainlink’s proof of reserve will further enhance transparency for investors.

💡 Feature of the Day: 

Tether Hits 350 Million Users [Source][Source]

Tether, the company behind the USD₮ stablecoin, marked a significant milestone by reaching 350 million users in 2024, a 24% increase from the previous year.

On Oct. 7, Tether celebrated its 10th anniversary, boasting that its stablecoin adoption has doubled over the past two years.

According to the company, its extensive holdings of U.S. Treasuries—totaling over $97 billion—strengthen the U.S. dollar’s global influence by offering a secure digital representation of the world’s reserve currency.

As part of its anniversary celebration, Tether plans to release a documentary chronicling its journey over the past decade, highlighting stories from people whose lives have been impacted by the stablecoin.

Today’s Sponsor:

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😂 Crypto Meme of the Day: 

And that’s it for this today.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com