Bitcoin Defies Shutdown: Brazil Embraces Crucial Crypto Mining Surge

October has historically been a strong month for Bitcoin, earning it the nickname ‘Uptober.’ This year, **Bitcoin** began the month with a significant surge. It defied a looming US government shutdown. This shutdown left numerous **altcoin ETFs** applications in limbo. However, the global cryptocurrency landscape continues to evolve rapidly. Brazil, for instance, actively courts **crypto mining** operations. Meanwhile, European regulators issue fresh warnings regarding private **stablecoins**. This week’s Global Express unpacks these pivotal developments.

Bitcoin’s Resilient ‘Uptober’ Amidst US Government Shutdown

Bitcoin climbed above $27,000 on Friday. This occurred as the **US government shutdown** extended into its third day. Optimism grew for the world’s largest cryptocurrency. It often enjoys a familiar October streak. US lawmakers failed to reach a funding agreement on Wednesday. This triggered the government shutdown. So far, it has not significantly rattled traditional markets. Major indexes edged higher, though gains were less sharp than Bitcoin’s surge.

Bitcoin outperforms traditional markets amid a US government shutdown. Source: TradingView

This government standoff carries particular weight. It delays the release of crucial US jobs data. This report was originally scheduled for Friday. The nonfarm payroll report is a key economic indicator. Investors watch it closely for signals. These signals relate to the Federal Reserve’s policy path. The next Federal Open Market Committee (FOMC) meeting starts on October 28. Bitcoin’s last October decline happened just before the 35-day shutdown. This shutdown began in December 2018. The cryptocurrency then slipped from $3,900 to $3,550. Analysts pointed to the Financial Action Task Force’s move. In October 2018, it extended guidelines to cover virtual assets. This dragged down sentiment. Since then, Bitcoin has logged six consecutive years of positive October performances.

Altcoin ETFs Face Delays

The government shutdown is expected to slow the Securities and Exchange Commission’s (SEC) review process. This includes routine applications. Crypto exchange-traded funds (ETFs) are among them. Proposals tied to Litecoin (LTC), Solana (SOL), and XRP (XRP) face decision deadlines. These are throughout the month. However, they are now likely to be delayed. This will continue until the agency returns to normal operations. Analysts remain confident. They believe **altcoin ETFs** will eventually receive approval. These delays are seen as temporary setbacks. Investors continue to monitor these developments closely.

Analysts remain confident that altcoin ETFs will get approved despite delays. Source: James Seyffart

Brazil’s Embrace of Crucial Crypto Mining

**Crypto miners** are finding a surprising welcome in Brazil. Energy firms there view them as a solution. They address chronic power oversupply. Reuters reports at least half a dozen projects are under negotiation. Some local plants report up to 70% excess output. Laos has adopted a similar strategy. It lures miners with hydropower. This helps service debt from dams that caused oversupply. What is unusual is this trend. Countries like Brazil and Laos are using crypto mining. They absorb surplus power. Elsewhere, miners have been forced out.

Consider China’s blanket ban in 2021. It shut down entire operations. This sent hash power abroad. In Thailand, miners faced raids. They were accused of destabilizing the grid. They also allegedly drove up electricity bills. Against this backdrop, Brazil treats the industry differently. It sees mining as a pressure valve for its energy system. It is not viewed as a threat. **Bitcoin** mining remains a highly competitive industry. The hash rate rose to an all-time high on September 25. This shows ongoing global interest and investment.

Bitcoin mining is a competitive industry with hash rate rising to an all-time high on Sept. 25. Source: Blockchain.com

New York’s Mining Tax Debate

The picture differs significantly in New York. State Senator Liz Krueger introduced a bill on Wednesday. It proposes a tiered excise tax. This tax targets **crypto mining** power use. The proposal would scale from $0.02 per kilowatt-hour. This applies to midsized operators. It goes up to $0.05 for the largest. Only miners fully relying on renewable energy would be exempt. This follows a two-year moratorium. That ban was on fossil-fuel-powered mining. It expired in 2024. The median cost of mining 1 **Bitcoin** already exceeds $70,000 this year. An added tax could drive grid-reliant miners out of the state. This highlights the diverse global regulatory approaches.

Global Regulatory Battles: UK’s Massive Bitcoin Seizure

Zhimin Qian pleaded guilty in a London court on Monday. She ran a multibillion-dollar Ponzi-style fundraising scheme in China. Her charges included laundering criminal proceeds. These proceeds involved 61,000 BTC. Qian’s partner, Hok Seng Ling, also pleaded guilty on Tuesday. Between 2014 and 2017, Qian defrauded over 128,000 investors. This occurred through her company, Tianjin Lantian Gerui Electronic Technology. It became one of China’s most notorious fundraising scandals. She later fled to the UK on false papers. Police seized her assets in 2018. They tracked Ling’s movements. The cache included **Bitcoin**, encrypted devices, cash, and gold. The UK Metropolitan Police described this as the largest cryptocurrency seizure in history.

Qian (left) and Ling (right) plead guilty after 61,000-BTC seizure. Source: Metropolitan Police

The **Bitcoin** stash is now worth over $7.24 billion. It is central to a legal debate. Should victims be repaid at today’s value? Or should they receive only what they lost years ago? The Financial Times reported on this. The High Court may restrict restitution. It could limit it to the original investment value for victims. This is roughly 640 million British pounds ($862 million). Such a decision would leave $6.4 billion under government control. Treasury officials have debated this. They consider if the excess could ease a budget deficit. Others warned that such a move could spark a long legal battle. This case underscores the complexities of crypto asset recovery.

Europe’s Evolving Stablecoin Landscape

European authorities signal pressure on private digital currencies. They simultaneously lay groundwork for their own alternatives. The European Systemic Risk Board (ESRB) reportedly recommended a ban. This targets **stablecoins** issued jointly by firms. These firms operate both inside and outside the bloc. The recommendation is not legally binding. However, it reinforces earlier warnings. European Central Bank (ECB) President Christine Lagarde issued such warnings. Italian central bank officials also expressed concerns. They suggest non-EU stablecoins could pose financial stability risks. Tether’s USDt (USDT), the world’s largest stablecoin, has already faced delisting. Several EU trading platforms removed it. Tether refused to comply with the bloc’s Markets in Crypto-Assets (MiCA) framework. This shift has boosted Circle’s USDC (USDC). Yet, the ESRB proposal could increase pressure. Tether’s US-based rival might also face scrutiny. Local initiatives are also emerging.

On September 25, nine major European banks announced plans. These include ING and UniCredit. They aim to jointly launch a euro-pegged stablecoin. This collaborative effort demonstrates a desire for regulated, regional digital currencies.

The group of nine European banks working together to develop a euro stablecoin. Source: ING

Meanwhile, the European Central Bank presses ahead with a digital euro. On Thursday, it announced framework agreements. Seven technology providers are involved. These include Feedzai and Giesecke+Devrient. They will develop systems for fraud detection, risk management, and offline payments. ECB executive board member Piero Cipollone recently commented. He said a mid-2029 launch “could be a fair assessment.” This comprehensive approach aims to solidify Europe’s position in the digital currency space, prioritizing stability and control over privately issued assets.