Today in crypto, Stripe CEO says stablecoins will force banks to offer users real interest on deposits, US-listed spot Bitcoin exchange-traded funds (ETFs) kicked off October with billions in inflows, and a crypto executive predicted the Bitcoin price cycle will endure.
Stripe CEO says stablecoins will force banks to offer users competitive interest on deposits
Stripe CEO Patrick Collison said that stablecoins will force banks to offer competitive interest rates to customers due to the rise of yield-bearing stablecoin options.
Collison cited average savings rates offered for customer deposits in the United States and Europe, which all came in well below 1%, as ripe for disruption by stablecoins. He wrote:
“Depositors are going to, and should, earn something closer to a market return on their capital. Some lobbies are currently pushing post-GENIUS to further restrict any kinds of rewards associated with stablecoin deposits. The business imperative here is clear — cheap deposits are great, but being so consumer-hostile feels to me like a losing position.”
The stablecoin market cap crossed $292 billion in October, according to data from RWA.XYZ, as the sector continued to grow following a comprehensive regulatory bill signed into law in the United States.
Bitcoin ETFs kickstart “Uptober” with $3.2 billion in second-best week on record
US-listed spot Bitcoin ETFs began the historically bullish month of October with their second-best week of inflows since launch, signaling renewed investor optimism.
Spot Bitcoin (BTC) ETFs recorded $3.24 billion worth of cumulative net positive inflows over the past week, nearly matching their record of $3.38 billion in the week ending Nov. 22, 2024, according to data from SoSoValue.
The figure marks a sharp rebound from the previous week’s $902 million in outflows. Analysts attributed the turnaround to growing expectations of another US interest rate cut, which has improved sentiment toward risk assets.
Growing expectations of another US interest rate cut triggered a “shift in sentiment,” attracting renewed investor demand for Bitcoin ETFs, “bringing four-week inflows to nearly $4 billion,” Iliya Kalchev, dispatch analyst at digital asset platform Nexo, told Cointelegraph. “At current run-rates, Q4 flows could retire over 100,000 BTC from circulation — more than double new issuance.“
“ETF absorption is accelerating while long-term holder distribution eases, helping BTC build a stronger base,” near key technical support levels, he added.
Continued ETF inflows may provide significant tailwinds for Bitcoin in October, which is the second-best month for Bitcoin in terms of average historical returns, often referred to as “Uptober” by crypto investors.
This week’s $3.2 billion briefly pushed Bitcoin’s price above $123,996 on Friday, marking an over six-week high last seen on Aug. 14 for the world’s first cryptocurrency, TradingView data shows.
“Very likely” Bitcoin cycle will continue in some form: Gemini exec
While Bitcoin’s four-year cycle may not play out exactly as it has in the past, that doesn’t mean the concept is entirely dead, according to a crypto executive.
“I think when it comes to the four-year cycle, the reality is that it’s very likely that we’ll continue to see some form of a cycle,” crypto exchange Gemini’s head of APAC region, Saad Ahmed, told Cointelegraph during a sit-down interview at Token2049 in Singapore.
“It ultimately stems from people get really excited and overextend themselves, and then you kind of see a crash, and then it kind of corrects to an equilibrium,” Ahmed said.
However, Ahmed said growing institutional involvement in the crypto industry could help the market absorb some of the volatility. “You’ll see some of the volatility, kind of flag off, but you’ll still see some sort of a cycle, because ultimately, it’s driven by human emotion,” Ahmed said.
