Weekly Review: Bitcoin’s Volatility and HBO’s Satoshi Claim

Inflation in the US exceeded expectations, HBO’s alleged Bitcoin creator Peter Todd denied the claim, Crypto.com filed a lawsuit against the SEC in response to a Wells notice, and other events of the past week.

Bitcoin Price Tests $63,000 Level

The leading cryptocurrency began the week with a rise to $64,000, followed by a correction, and on Thursday, October 10, it fell below the psychological threshold of $60,000. It then recovered to test the $63,000 mark.

At the time of writing, Bitcoin is trading at $62,450.

Most digital assets in the top 10 by market capitalization ended the week in the “red zone.” TRON stood out with a 5.1% increase.

The total cryptocurrency market capitalization is $2.28 trillion. Bitcoin’s dominance index is 58%.

US Inflation Exceeds Expectations

In September, annual inflation in the US reached 2.4%, compared to 2.5% the previous month. The figure exceeded market expectations of 2.3%.

On a monthly basis, the consumer price index rose by 0.2%, the same as in August. The consensus forecast predicted an increase of 0.1%.

The index excluding food and energy prices rose by 0.3% from the previous month and by 3.3% compared to September last year. The previous report showed values of 0.3% and 3.2%, respectively.

Analysts expected annual rates to remain at 3.2% and monthly rates to slow to 0.2%.

The negative impact of disappointing inflation data is offset by a jump in unemployment benefit claims from 225,000 to 258,000, with a forecast of 231,000. The discrepancy can be attributed to the impact of hurricanes and strikes.

Prices for services excluding housing and energy rose by 0.4% after increasing by 0.33% in August, 0.21% in July, and decreasing by 0.05% and 0.04% in May-June. The Fed noted the importance of this metric in analyzing the inflation trajectory.

Another important indicator for monetary authorities, rental prices, increased by 0.2% after a peak of 0.49% in August and 0.36% in July.

HBO’s Alleged Bitcoin Creator Peter Todd Denies Claim

In the HBO documentary Money Electric: The Bitcoin Mystery, Peter Todd was named as the creator of Bitcoin. The programmer denied this claim.

“I am not Satoshi,” he wrote succinctly.

The film was directed by Cullen Hoback, whose previous work, Q: Into the Storm, focused on debunking the popular US conspiracy theory QAnon.

The basis for the authors’ assumptions was a post by Todd on the BitcoinTalk forum, allegedly accidentally published using his own profile.

Topics to Discuss with Friends

• Media: A “tap app” based on Solana launched on TikTok.
• Justin Sun elected Prime Minister of Liberland.
• Tesla unveiled autonomous taxis and a bus.
• Sociogram introduced Meme Money Maker — a platform for launching meme coins.

Crypto.com Files Lawsuit Against SEC in Response to Wells Notice

Crypto.com has filed a lawsuit against the US Securities and Exchange Commission (SEC) to protect the future of the crypto industry in the country.

The decision followed the firm’s receipt of a Wells notice. This type of letter is used by the agency to inform individuals and companies of violations discovered during an investigation, which may lead to a civil lawsuit.

Crypto.com also requested a joint interpretation of the concept of crypto derivatives from the SEC and the CFTC.

The company noted that the agencies have 120 days to formulate a response or reject the request.

Bitwise Outlines Conditions for Bitcoin to Surpass $80,000 by Year-End

A Trump victory in the US elections, a 50 basis point rate cut by the Fed with new stimuli from China, and no major surprises in the industry are conditions for Bitcoin to rise above $80,000 by year-end, according to Bitwise.

The company’s Chief Investment Officer, Matt Hougan, confirmed the year-end 2023 forecast. He previously cited BTC-ETF approval and the fourth halving as drivers.

In his latest note, the expert emphasized that a victory by Democratic candidate Kamala Harris could hinder the scenario.

“The party has diverse views on cryptocurrencies, from Senator Elizabeth Warren’s ‘anti-crypto army’ to deep support from Representative Ritchie Torres. The problem over the past four years has been that the former controlled policy and agency appointments, creating a hostile environment for the sector,” Hougan noted.

He believes Bitcoin needs politicians to “get out of the way.”

“In the absence of a Democratic majority in both houses of Congress and a Harris victory, the party will adopt a more neutral approach to the industry,” the specialist predicted.

Bernstein also pointed to Bitcoin’s rise to $80,000-90,000 if a Republican candidate wins the November 5 election. A switch from Joe Biden to Harris would lead to a rollback to $40,000, without changing the long-term positive outlook, analysts added.

Also on ForkLog:

• Mt.Gox postponed compensation to 2025.
• L2 network Scroll announced the launch and airdrop of the SCR token.
• Uniswap to launch its own L2 solution, Unichain.
• Former investigator sentenced to 16 years for a record bribe in bitcoins.

Economist Suggests Nobel Prize for Buterin

Ethereum co-founder Vitalik Buterin is a contender for the Nobel Prize in Economics, as is Bitcoin creator Satoshi Nakamoto, but “the latter is not alive,” stated economist Tyler Cowen.

In a podcast with his colleague Alex Tabarrok, the experts compared Ethereum’s transition from Proof-of-Work to Proof-of-Stake to changing tires while driving a car.

Cowen praised Buterin for his significant contribution to the cryptocurrency economy, emphasizing that his work far surpasses that of any other specialist.

“Vitalik built a platform, created a currency, effectively disproved Mises’ regression theorem, following in the footsteps of Satoshi (Nakamoto). My goodness, what does it take to win a Nobel Prize?” Cowen wondered.

The economist also noted the positive personal qualities of Ethereum’s founder and his focus on philanthropy.

What Else to Read?

This week, ForkLog explored the features of the modular blockchain Berachain, how the crypto market is turning into a casino, and how BIP-352 improves Bitcoin user anonymity.