Even though the third quarter was tough, Bitcoin has been very strong in 2024, continuing to be the best-performing currency. A new report from the New York Digital Investment Group (NYDIG) says that Bitcoin made a small 2.5% gain in Q3, after going down in the previous three months. This makes the growth so far this year an amazing 49.2%. Bitcoin is still doing very well, even though the market is under a lot of pressure.

Market Dynamics And Challenges In Q3

This year was no exception to the common perception that the third quarter of the year is a challenging time for Bitcoin. The cryptocurrency encountered numerous obstacles, such as substantial sell-offs by significant holders.

It is important to note that the US and German governments sold off significant quantities of Bitcoin, which dramatically affected market sentiment. Furthermore, the resolution of long-standing bankruptcies, such as Mt. Gox, resulted in the return of billions of dollars in Bitcoin to creditors, which further influenced prices.

Despite all the difficulties Bitcoin faced—a month usually marked with decreases for the digital asset—it exceeded expectations in September with a 10% increase. Though other asset classes, such gold and equities, were performing well, Greg Cipolaro, the research director of NYDIG, pointed out that Bitcoin’s ability to maintain its position as the top asset is remarkable. The analysis underlined that during the past six months, Bitcoin’s price has moved between $65,000 and $54,000 with no clear pattern.

ETF Inflows Fostering Growth

The demand for US spot exchange-traded funds (ETFs) has been a substantial factor in the support of Bitcoin’s price during this period. In Q3, these ETFs received a total of $4.3 billion in inflows, with BlackRock’s iShares Bitcoin Trust taking the lead.

This injection of capital has allowed Bitcoin to find new means of supporting the price in periods of larger market volatility. Conversely, exchange-traded funds based on Ethereum have struggled to generate anywhere close to the same level of interest.

BTC market cap currently at $1.22 trillion. Chart: TradingView.com

The growth of ETF investment continues to be on an upward curve, showing confidence from investors in the growing potential of cryptocurrencies as a decent asset in light of somewhat fluid and volatile conditions within the economic setup. Mainstream markets are still sound although indices such as the S&P 500 have recently shown improvements. It is for this reason that Bitcoin’s position diverges uniquely and really helps multi-asset portfolios to provide diversification benefits.

Image: StormGain

Future Prospects: Potential Catalysts

As we head into Q4, analysts see great promise for Bitcoin. Historically, the top crypto has had a good run over this period. One of numerous possible triggers that can raise prices, Cipolaro noted is the approaching US presidential election on November 5. If former President Donald Trump, who has shown support for cryptocurrencies, wins, Bitcoin stands to gain greatly.

Moreover, global monetary easing and stimulus measures from countries like China could further influence Bitcoin’s trajectory in the coming months. While some investors may feel frustrated with Bitcoin’s range-bound trading over recent months, Cipolaro reassured them that this is not unusual for this time of year.

Featured image from StormGain, chart from TradingView

According to latest reports, El Salvador Bitcoin’s dream is now under scrutiny by The International Monetary Fund (IMF). Particularly, the IMF has urged El Salvador to reconsider its approach to its Bitcoin law, recommending “narrowing” the law’s scope and reducing the public sector’s exposure to Bitcoin.

Notably, BTC became a legal tender in El Salvador in September 2021, and ever since, the country has been actively working to integrate the crypto asset within the region.

The Push To Tame Bitcoin Law, Why?

The IMF’s call for El Salvador to limit its Bitcoin policy comes from ongoing discussions with Salvadoran authorities about “macroeconomic stabilization and reform policies.” Julie Kozack, IMF’s communications director, addressed the organization’s concerns at a recent press briefing.

She emphasized the need to address risks associated with Bitcoin adoption in El Salvador, stating that regulatory oversight and the overall framework governing the country’s BTC ecosystem require strengthening.

The briefing revealed that the IMF is in talks with El Salvador to establish a program to stabilize the economy, support growth reforms, and tackle issues tied to BTC’s legal status.

Specifically, they disclosed that their push for El Salvador to make a policy change on its Bitcoin laws is due to the “potential risks” involved in El Salvador’s comprehensive embrace of the asset, concerning “fiscal policies and financial stability.”

What is Next for El Salvador?

Despite the legal integration of BTC as an alternative currency, the IMF believes that many of the associated risk are yet to be materialized completely. The IMF noted in a statement published in August:

There is joint recognition that further efforts are needed to enhance transparency and mitigate potential fiscal and financial stability risks from the Bitcoin project. Additional discussions in this and other key areas remain necessary,

Notably, the IMF plan, as disclosed, is to ensure that El Salvador’s public sector does not become “overly exposed” to BTC’s volatility and that the digital currency is “well-regulated” within the broader financial system. They added in the statement:

Progress has been made in the negotiations toward a Fund-supported program, focused on policies to strengthen public finances, boost bank reserve buffers, improve governance and transparency, and mitigate the risks from Bitcoin

Meanwhile, it is worth noting that the Salvadoran government’s bold move to recognize Bitcoin as a legal tender marked a global first and has positioned the country at the forefront of crypto innovation.

The region has made several developments concerning crypto to cement it as a crypto hub further. El Salvador added 162 BTC to its national holdings in August this year.

Additionally, in February, the country launched a BTC educational project to empower its young citizens with the skills needed to run a node on the BTC network.

Featured image created with DALL-E, Chart from TradingView

The crypto community is eagerly waiting for the release of an HBO documentary titled “Money Electric, The Bitcoin Mystery.” Some believe that the documentary might reveal the identity of Satoshi Nakamoto, the founder of Bitcoin.

The crypto traders are electrified, with nearly $5 million wagered on various predictions through platforms like Polymarket.

Who is Satoshi Nakamoto?

Len Sassaman, a key figure within the cypherpunk movement, emerges as a top contender. Currently, Polymarket odds suggest a 38% chance that Sassaman will be identified as Nakamoto. Crypto analyst Hitesh Malviya points to several compelling connections between Sassaman and the pseudonymous inventor.

Read more: Satoshi Nakamoto – Who is the Founder of Bitcoin?

Sassaman, whose death came just 88 days after Nakamoto’s last known communication on April 23, 2011, was a pivotal advocate for cryptography and privacy.

“Len Sassaman, a young cypherpunk, took his own life, marking the end of a brilliant mind dedicated to user privacy and open knowledge,” Malviya wrote.

His passing coincided with a period of significant mourning within the cypherpunk community, which fervently supports the principles of anonymous digital communication and currency—the very foundations of Bitcoin. Moreover, the cypherpunk community paid him homage on the Bitcoin Block 138,725, mined 27 days after Sassaman’s death.

The Bitcoin block featured art in Sassaman’s memory, cementing his legacy within the blockchain.

Furthermore, Sassaman’s connection with Hal Finney, another Satoshi candidate, adds depth to the narrative. Finney, who received the first Bitcoin transaction, collaborated closely with Sassaman on numerous cryptographic challenges. Both shared the use of British English in their writings—a notable characteristic of Nakamoto’s communications.

Additionally, an analysis of Sassaman’s Twitter activity shows a pattern that mirrors the timing of Satoshi’s code commits, suggesting synchronized late-night development sessions.

Read more: Who Owns the Most Bitcoin in 2024?

Meme Coin Speculations

With the documentary’s release imminent, the crypto community has embraced Sassaman’s legacy in novel ways. Over the past week, meme coins inspired by Sassaman and even his cats, Sasha and Odin, have proliferated across networks like Ethereum and Solana. In fact, some of the meme coins have achieved market capitalizations of over $10 million.

This flurry of activity highlights Sassaman’s profound impact on cryptography and digital privacy, bolstering his case as a potential Satoshi Nakamoto. While the documentary may or may not conclusively unveil Nakamoto’s identity, the narrative surrounding Sassaman ensures his contributions will not be overlooked.