This week’s focus on "Deconstruction" highlights the anniversary of Bitcoin's historic peak, the role of stablecoins in China's crypto market, the ECB's blockchain strategy, and the debate among AI giants regarding technology safety.
Bitcoin One Year After ATH: Who is Buying the Dip?
A year after reaching an all-time high of over $126,000, Bitcoin is currently trading approximately 32% lower than that peak. At the beginning of October, the market experienced liquidations of around $550 million; however, this current correction pales in comparison to last year's cascade, where over $19 billion was lost in a single day due to liquidations.
Despite this, spot demand indicators are gradually recovering, and trading volumes are on the rise. Yet, outflows from Bitcoin ETFs and a negative Coinbase Premium suggest that institutional demand remains mixed. A crucial market level is the $77,000–79,000 range; a drop below this could intensify selling pressure.
China Developed a Crypto Payment System—But There’s a Catch
According to Chainalysis, from July 2025 to June 2026, peer-to-peer transactions constituted 59.1% of China's crypto market, with the number of wallets involved in direct stablecoin transfers increasing 43-fold. Analysts estimate that around $3.1 billion worth of stablecoins in self-custody facilitated $104.1 billion in transfers over the year. This data suggests that digital dollar assets are being used not only for investments but also for payments; however, this remains a hypothesis rather than a confirmed conclusion.
In other East Asian countries, crypto markets are evolving in different ways: South Korea continues to be a hub for retail trading, Japan is bridging traditional finance with on-chain infrastructure, and Hong Kong is solidifying its position as a regulated institutional hub. As a result, the region showcases multiple scenarios for the use of digital assets—from active trading to alternative payments and financial services.
ECB Also Wants to Get into Blockchain
The European Central Bank is exploring options to integrate central bank money with blockchain infrastructure. One proposal includes issuing tokenized bank reserves directly on a distributed ledger. This would enable settlements for tokenized assets within the same digital environment, potentially automating transactions and reducing the number of intermediaries involved.
The regulator is also considering more cautious approaches—ranging from connecting existing settlement systems with distributed ledger technology platforms to utilizing private intermediaries. The Pontes project is already aimed at linking blockchain platforms with the Eurosystem's settlement infrastructure. This does not involve an immediate transition of bank reserves to blockchain but rather a gradual adaptation of financial infrastructure to tokenization.
AI Giants Suddenly Concerned About Safety—Coincidence?
Leaders of major AI companies are increasingly voicing the need for oversight in the development of powerful models. Dario Amodei, head of Anthropic, advocates for independent supervision, coordination among developers from democratic countries, and international safety standards. However, Meta criticizes this approach, fearing that agreements among major players could restrict open models and hinder market entry for new competitors.
The central question remains: who will set the rules and ensure compliance? Expensive audits, ongoing monitoring, and additional requirements may enhance safety but could also create advantages for companies that already possess vast resources. If market leaders define the rules for the entire industry, safety measures risk becoming barriers to competition.
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