Crypto markets prepare for Bitcoin’s $US100k milestone

Weekly crypto wrap: 28th November 2024

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TLDR

• Australian MP highlights the growing importance of digital assets and blockchain
• Crypto markets prepare for Bitcoin’s $US100,000 milestone
• AFR Op-ed: Bitcoin is back. But Australia is lagging on crypto innovation
• MicroStrategy’s Bitcoin binge: Market frenzy or financial bubble?
• Wall Street prepares for new generation of crypto ETFs.
• Sui teams up with Franklin Templeton Digital Assets to drive blockchain innovation.

Breaking news

Dr Andrew Charlton MP highlights the growing importance of digital assets and blockchain.

This week, Dr Andrew Charlton, Member of Parliament for Parramatta and Special Envoy for Cyber Security and Digital Resilience, reinforced the vital role that digital assets, blockchain, and cryptocurrency will play in shaping Australia’s economic future.

In his address, Dr Charlton made a key statement about the evolution of cryptocurrency:

"Cryptocurrency is no longer just an emerging technology. It’s an asset that is valued by millions of Australians. It represents a new frontier in finance, enabling innovation, efficiency, and opportunity in ways we could not have imagined just a decade ago."

He went on to acknowledge the Australian Government’s commitment to the sector’s future, highlighting its potential to drive economic growth and attract investment:

"The Australian Government values this sector too, recognizing its potential to drive economic growth, attract investment, and cement our place as a leader in the digital economy."

Dr Charlton emphasised that digital assets have evolved beyond transactional tools and are now a distinct asset class. This shift offers new opportunities for wealth creation, financial inclusion, and secure decentralized systems. With millions of Australians already investing in or using cryptocurrency, digital assets are becoming an integral part of everyday financial activity.

Looking ahead, Dr Charlton reassured the industry that the government is committed to fostering a supportive regulatory framework:

"We’re working to create a regulatory environment that supports innovation while managing risks and protecting consumers. By collaborating with industry leaders, researchers, and global partners, we aim to establish Australia as a safe, transparent, and thriving hub for cryptocurrency and blockchain technology."

This is a pivotal moment for the sector. Dr Charlton believes that, together, the value of digital assets can be harnessed to build a more resilient, inclusive, and innovative Australian economy.

Caroline Bowler, CEO of BTC Markets noted that:

“Dr Andrew Charlton’s recent comments on the vital role that digital assets, blockchain, and cryptocurrency will play in Australia’s future are well made. We are truly at a critical juncture when it comes to the future of financial services in this country."

Read her full statement here.

BTC Markets in the news

The Australian: Bitcoin likely supported in US$80-$90k range BTC Markets

Bitcoin is likely to find support in the $US80-$US90 range based on the magnitude of recent pullbacks, according to BTC Markets.

The cryptocurrency is currently trading around $US92,070 after falling as much as 9 per cent in a four-day fall from a record high of $US99,728.36 last Friday.

“Bitcoin’s recent dip aligns with its typical market behaviour of sharp gains followed by healthy corrections,” says Charlie Sherry, Head of Finance of BTC Markets.

“Corrections of 10-30 per cent are typical, and they play a crucial role in shaking out over-leveraged positions, strengthening support levels and preventing unsustainable price surges.”

Read the full article here

AFR: Crypto markets prepare for Bitcoin’s $US100,000 milestone

The $US100,000 level is held up as a milestone for advocates who have long argued that the role cryptocurrencies play as a modern-day store of value is unappreciated. That is despite sceptics pointing to the prevalence of digital assets in enabling money laundering and crime, epitomised by the collapse of platforms including Sam Bankman-Fried’s FTX two years ago.

“The $US100k mark really is a stake in the ground for those who have been fanatical about bitcoin for many years against some pretty stiff opposition not just in the US but across the world,” said Caroline Bowler, chief executive of Australian crypto exchange BTC Markets.

“It very much seemed as though there are sections of the establishment who have not liked bitcoin, which also adds to some of its romantic appeal – the fact it’s had such opposition and been able to overcome it.”

Read the full article here

AFR – Opinion: Bitcoin is back. But Australia is lagging on crypto innovation

Source: AFR

Cryptocurrencies and blockchain technology have moved from niche topics to central players in global finance. Policymakers must recognise the opportunities these digital assets present.

Recent comments from Reserve Bank of Australia governor Michele Bullock at the Australian Securities and Investments Commission annual forum cast doubt on the role of cryptocurrencies in Australia’s financial future.

Bullock’s assertion that digital assets such as Bitcoin are “not money” but “some sort of asset class” reflects a conventional view that misses the larger, transformative potential of cryptocurrencies and blockchain technology. That a more open-minded approach is needed is underlined by looking at developments overseas.

Read Caroline’s full opinion piece in the AFR

Cointelegraph: Bitcoin‘s $93K dip could be ‘last flush’ before the rush: Analysts

Head of finance and crypto analyst at BTC Markets, Charlie Sherry, told Cointelegraph that Bitcoin’s recent drop to $93,000 is “best understood as part of its historical pattern of sharp gains followed by healthy corrections.”

He added that these pullbacks “demonstrate a cyclical pattern that allows the market to consolidate gains and reduce leverage before advancing further” before predicting that this could be a final flush before it hits six figures.

“The dip to $92,600 aligns with this trend, suggesting it could be the ‘last flush’ before Bitcoin finally crosses $100K.”

Sherry cautioned that if the pullback deepens, BTC could potentially test the $88,000 to $90,000 range, which represents key support levels based on recent price action.

“However, a deeper correction between 20% and 30% could take Bitcoin closer to $80,000, a level still consistent with prior bull market behavior,” he added.

He referred to blockchain betting platform Polymarket’s 72% odds of BTC hitting $100,000 before Christmas, adding, “I like those odds.”

Read the full article here

Crypto market updates

• Crypto market soars as retail returns and institutions lead the charge.
• Navigating Bitcoin’s latest moves: Healthy pullback or final flush?
• Crypto market update: Strong gains amid positive sentiment.

Thursday, 28th November

XRP and metaverse tokens lead the charge as crypto market shows strong gains*.

Bitcoin (BTC) experienced a slight dip, losing 2.25% on the week, closing at AU$147,341.13, as it consolidates before approaching the key psychological resistance. Ethereum (ETH) performed better, gaining 8.82% to close at AU$5,559.2, as traders shifted focus to altcoins. XRP posted a strong 17.91% increase, finishing at AU$2.2692, while Litecoin (LTC) saw an 8.80% rise, closing at AU$150.21.

Among the top performers, the Sandbox (SAND) surged by 98.26%, driven by a rally in metaverse-related assets, with Decentraland (MANA) also up 56.06%. Stellar (XLM) rebounded with an 85.81% gain, and Uniswap (UNI) rose by 47.06%. The total cryptocurrency market capitalisation remained steady at US$3.26 trillion.

Check prices.

*Trading stats as of Thursday, November 28th at 11:00 am AEDT, based on data from the BTC Markets Exchange in AUD.

Wednesday, 27th November

Crypto market soars as retail returns and institutions lead the charge.

The crypto market is showing clear signs of a post-election recovery, with retail investors returning in full force. On the BTC Markets platform, we’ve seen a 60% month-over-month increase in new customer trading activity and a 150% rise in returning customers. Many dormant accounts dating back to 2019 have re-engaged, reflecting broader market trends.

While retail participation is crucial for creating a sustainable market structure, institutional investors continue to drive significant price growth. Improved regulatory clarity and ETFs are attracting institutional inflows, with companies adopting Bitcoin on their balance sheets further legitimising the asset class. This institutional involvement is helping fuel a cycle of legitimacy, rising prices, and increased retail awareness.

Retail momentum is also evident in rising app downloads and a surge in Bitcoin searches. The combined strength of both retail and institutional participation has propelled the recent market rally.

Click here to read Charlies full update.

Tuesday, 26th November

Navigating Bitcoin’s latest moves: A healthy pull back or final flush?

Bitcoin’s recent retreat to US$93k has raised questions about whether this is the last consolidation before breaking the US$100k barrier. With a nearly 50% rise in November, Bitcoin is now within striking distance of this significant milestone.

What’s driving this correction?

• Profit-taking: Investors cashing out near a key psychological level.
• Leverage dynamics: US$4.25 billion in short positions creating volatility.
• Psychological resistance: US$100k remains a significant milestone.

Is this healthy?

Yes. Historical trends suggest corrections of 10-30% are normal during bull runs and essential for sustainable growth. Bitcoin could retest US$88k-US$90k as it consolidates gains, positioning itself for a stronger push.

With December historically being a favourable month for Bitcoin and prediction markets assigning a 72% chance of hitting US$100k by Christmas, the odds look promising.

Read the full update from Charlie.

Check current prices

Monday, 24th November

The weekly crypto close

The cryptocurrency market experienced a standout trading week, with the total market cap surging 10.67% to close at US$3.274 trillion. This reflects growing investor confidence, increased liquidity, and robust capital inflows driving bullish momentum across the market.

Key highlights:

• Cardano (ADA): Impressive 45.55% rise.
• XRP: Gained 35.93%.
• Chainlink (LINK): Advanced 29.97%.
• Avalanche (AVAX): Increased by 21.18%.
• Bitcoin (BTC) & Ethereum (ETH): Notable gains of 8.95% and 9.27%, respectively, setting the stage for a potential altcoin season.

The market’s performance underscores renewed interest in cryptocurrencies as investors explore opportunities in both established and emerging projects.

Read the weekly crypto close here.

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State of crypto

• MicroStrategy’s Bitcoin binge: Market frenzy or financial bubble?
• Wall Street prepares for new generation of crypto ETFs as Trump administration signals industry shift.
• Sui teams up with Franklin Templeton Digital Assets to drive blockchain innovation.
• The Sandbox hits fresh yearly high as on-chain metrics reach record levels.
• Decentraland (MANA) price surge amid metaverse revival.
• Uniswap (UNI) rally driven by bullish indicators.

MicroStrategy’s Bitcoin binge: Market frenzy or financial bubble?

MicroStrategy has reignited debate in the crypto and equity markets with a high-stakes strategy that blends bold ambition with significant risks. The company, led by CEO Michael Saylor, recently added 55,500 Bitcoin to its holdings for US$5.4 billion, bringing its total stash to 386,700 BTC purchased for a cumulative US$21.9 billion. This aggressive buying spree, funded by 0% debt offerings and share sales, has helped propel the company’s stock price up over 600% this year, outpacing tech giants like Nvidia, despite modest quarterly revenue of just US$116 million.

Saylor likens MicroStrategy’s role to refining crude oil into petrol, positioning the firm as a gateway for institutional investors to gain Bitcoin exposure without holding the asset directly. Supporters hail this as a visionary approach that could redefine corporate finance by showcasing Bitcoin’s potential as a store of value. However, critics argue that the strategy relies heavily on a cyclical process: raising funds to buy Bitcoin, which in turn lifts MicroStrategy’s stock, enabling further capital raises.

The risks are substantial. A downturn in Bitcoin’s value could trigger a spiral of write-downs and forced asset sales. With an average Bitcoin purchase price of under US$40,000 and Bitcoin now trading near US$100,000, the firm’s holdings are valued at approximately US$24 billion, significantly higher than its US$4.3 billion debt.

MicroStrategy's US$136 billion trading frenzy eclipses GameStop mania and even Amazon's record volume.

The trading activity surrounding MicroStrategy ($MSTR) has reached unprecedented levels, eclipsing some of the most intense moments in market history. Over the past week, $MSTR recorded a staggering US$136 billion in trading volume, far outpacing the frenzied peaks of GameStop ($GME) during its retail investor-driven surge and even surpassing Amazon ($AMZN), which has never experienced such concentrated activity in its trading history.

Source: Eric Balchunas on X

This remarkable volume underscores the level of speculation and investor interest tied to MicroStrategy's aggressive Bitcoin strategy. The company’s unique approach, leveraging debt and equity markets to purchase massive amounts of Bitcoin, has positioned its stock as a proxy for Bitcoin itself. As Bitcoin's price has surged, so too has interest in $MSTR, amplifying trading volumes to historic levels.

The sheer scale of this activity highlights both the enthusiasm and the potential risks inherent in MicroStrategy's strategy. With such extraordinary volumes, the company has not only captured market attention but also become a focal point for discussions about the sustainability of its high stakes bet on cryptocurrency. Whether this momentum is indicative of enduring investor confidence, or a sign of speculative excess remains a key question.

Wall Street prepares for new generation of crypto ETFs as Trump administration signals industry shift.

Wall Street is preparing for a new wave of speculative cryptocurrency exchange-traded funds (ETFs) under a potential Trump administration, with the expectation of a more crypto-friendly SEC.

Financial firms are looking to launch products targeting both institutional investors and retail traders, incorporating more complex strategies like leverage, options, and a broader range of altcoins.

These new ETFs, which may focus on tokens like Solana, XRP, and Litecoin, are seen as more likely to gain approval under Trump’s SEC than under the Biden administration. The growing demand for Bitcoin-linked ETFs has also led to the development of “Bitcoin-plus” products, which combine Bitcoin with other assets or strategies, and altcoin or basket ETFs.

As Wall Street prepares to introduce these innovative products, the market is set to offer new opportunities for investors, from conservative approaches to high-risk, speculative strategies.

Source: TheBlock.co

Check BTC/AUD price

Sui teams up with Franklin Templeton Digital Assets to drive blockchain innovation.

The Sui Foundation has announced a strategic partnership with Franklin Templeton Digital Assets, aimed at advancing the Sui ecosystem and leveraging cutting-edge blockchain technologies. Franklin Templeton, known for its blockchain initiatives since 2018, will bring its expertise in tokenomics, data science, and digital asset strategies to support builders within the Sui network.

This collaboration highlights Franklin Templeton’s enthusiasm for groundbreaking Sui projects like Deepbook, a decentralised limit order book; Karrier One, a decentralised mobile carrier network; and Ika, an advanced parallel MPC network for secure cross-chain interactions. These projects showcase Sui’s strengths in DeFi and decentralised infrastructure.

The partnership comes amid growing institutional interest in the Sui blockchain, following Grayscale’s establishment of the Grayscale SUI Trust and the launch of stablecoins such as USDC and FDUSD on the platform. Since Sui’s mainnet launch in May 2023, its DeFi sector has seen remarkable growth, with a 675% increase in total value locked (TVL) and a 956% surge in trading volume. Sui’s innovative parallel processing capabilities continue to attract developers and investors by enabling low-latency transactions and maintaining minimal gas fees.

SUI sees US$325M inflow from Ethereum Amid Bitcoin staking integration.

SUI has surged 12.9%, briefly surpassing the US$3.50 mark. The rally follows the announcement of a major Bitcoin staking integration in SUI's DeFi ecosystem, set to launch in December 2024. This partnership with Babylon Labs and Lombard Protocol aims to bring Bitcoin liquidity to SUI, attracting a share of the US$1.8 trillion Bitcoin market.

On-chain data reveals US$325 million worth of assets bridged from Ethereum to SUI in the last 30 days, positioning SUI as a prominent player in decentralised finance. This influx of capital enhances liquidity and reduces volatility, further driving adoption of the SUI network.

As the Bitcoin staking integration approaches, SUI’s price is poised for further gains, with technical indicators suggesting a potential breakout toward US$4.00.

Check SUI/AUD price

The Sandbox hits fresh yearly high as on-chain metrics reach record levels.

The Sandbox (SAND) has hit a fresh yearly high of US$0.8680, continuing its bullish rally after surging more than 121% last week. Although the price has since retraced to US$0.7600, the outlook remains positive, underpinned by strong on-chain metrics. Notably, SAND's open interest and weekly trading volumes have reached record highs, signalling growing market interest. Data from Coinglass reveals that SAND’s open interest (OI) surged fourfold from US$53.14 million on Friday to US$222.01 million on Monday, marking the highest level since April 2022. This spike indicates new money entering the market, contributing to the bullish sentiment.

In addition, Santiment’s data highlights a significant increase in SAND’s weekly trading volume, which rose from $121.95 million to $5.41 billion, the highest since late October 2021. Historically, such volume surges have been followed by price increases, further bolstering the positive outlook for SAND. Santiment’s Exchange Flow Balance metric also suggests decreasing selling pressure. The metric, which tracks tokens entering and leaving exchanges, dropped from 3.97 million on Thursday to -15.27 million on Sunday. This shift indicates that more tokens are being moved to cold wallets, reducing exchange supply and signalling a decline in selling pressure.

Check SAND/AUD prices

Decentraland (MANA) price surge amid metaverse revival.

Decentraland’s cryptocurrency, MANA, has surged 70% in a week, hitting a nine-month high of $0.70 amid a broader rally in Metaverse tokens. Key drivers include a significant rise in active addresses, growing from 810 on November 20 to nearly 4,000 by November 25, and strong trading volume of $1.57 billion, reflecting heightened market participation. Despite optimism, resistance at $0.70 could limit further gains, as 36.47 million tokens acquired near this price are "out of the money." If buying pressure persists, MANA may target $0.80; otherwise, a short-term pullback to $0.61 is possible.

Check MANA/AUD prices

Uniswap (UNI) rally driven by bullish indicators.

Uniswap (UNI) has experienced a significant 15% price increase over the last 24 hours, reflecting strong bullish momentum. This surge is backed by key technical indicators, including a rising Relative Strength Index (RSI) and a positive Bollinger Bands (BBTrend) reading, suggesting further potential for growth.

If the bullish momentum continues, UNI is expected to test resistance levels at $13.3 and $14.8. Breaking through these levels could see UNI rally to $17, marking a 36% increase from current levels. However, should the momentum weaken, UNI might face a retracement to key support levels at $12 or $10.4, with the possibility of dropping further to $8.59 if the broader market sentiment shifts bearish.

In conclusion, while Uniswap's current indicators point towards potential upside, traders should remain cautious of any shifts in momentum that could trigger a price correction.

Check UNI/AUD price

Crypto Fear & Greed Index

Source: Fear & Greed Index

The week ahead: economic events

Thursday, November 28th

• 11:00pm Germany Inflation Rate

Friday, November 29th

• 3:00pm Japan Consumer Confidence
• 5:45pm France Inflation Rate
• 8:00pm Euro Area and Italy Inflation Rate
• 10:00pm India GDP Annual Growth Rate
• 11:30pm Canada GDP Growth

Saturday, November 30th

• 11:30am China NBS Manufacturing PMI

Monday, December 2nd

• 11:45am China Caixin Manufacturing PMI

Tuesday, December 3rd

• 1:00am United States ISM Manufacturing PMI

Wednesday, December 4th

• 1:00am United States Job Openings
• 10:30am Australia GDP Growth Rate

Source: trading economics

Market reflections

Overview

Australia's inflation held steady in October, staying within the RBA’s range for a third month, aided by energy rebates. The construction sector displayed robust growth, although services contracted in November. Globally, US GDP rose 2.8%, spending slowed, and core PCE inflation climbed. German PMI contracted further, and consumer sentiment declined. Japan’s inflation dipped as energy costs eased, while the UK experienced declining retail sales amid budget uncertainty. The US Fed anticipates steady growth, signalling cautious rate cuts.

Australia

• Australia's inflation stays steady as energy rebates ease price pressures
• Services sector contracts in November as new business growth slows
• Construction sector shows strong growth in Q2 2024

Inflation stays steady as energy rebates ease price pressures.

Inflation remained steady at 2.1% in October 2024, matching the previous month and staying within the Reserve Bank of Australia's target range for the third consecutive month. This is the lowest inflation rate since July 2021, aided by government measures like the Energy Bill Relief Fund rebate. Energy prices saw a notable decline, with electricity costs falling by 35.6%, while automotive fuel prices also dropped, albeit at a slower pace. However, key areas like food, alcohol, and recreation continued to see price increases. Excluding volatile items, core inflation slowed to 2.4%, the slowest pace since November 2021, signalling easing inflationary pressures.

Services sector contracts in November as new business growth slows.

Australia’s services sector contracted in November, with the Judo Bank Services PMI falling to 49.6 from 51 in October. This marks the first contraction in ten months, driven by a slowdown in new business growth and a fall in export orders. Despite a decline in backlogs of work, easing pressure on business capacity, confidence in the services sector improved, with optimism reaching its highest level since August 2023. The S&P Global PMI Composite Output Index also fell slightly to 49.4, indicating reduced activity in both manufacturing and services. Businesses remain cautiously optimistic about future growth, despite ongoing challenges.

Construction sector shows strong growth in Q2 2024.

Australia’s construction sector saw a solid rise in activity in Q2 2024, with total construction work increasing by 1.6% quarter-on-quarter to AUD 73.34 billion. This surpassed expectations and marked the strongest growth since Q4 2023. The rise was led by a 2.6% increase in engineering activity, while the residential sector also saw solid gains. However, non-residential construction output contracted by 1.0%. Geographically, construction activity was strong in New South Wales, Victoria, and Tasmania, while other regions, including Queensland and Western Australia, saw declines. Year-on-year growth in construction activity accelerated to 3.2%.

Global

• US Fed anticipates steady growth, cautious rate cuts; Q3 GDP rises 2.8% on spending.
• Core PCE inflation climbs in the US; durable goods orders miss forecasts, income grows, but spending slows.
• German Manufacturing PMI improves slightly, but contraction persists, reflecting ongoing economic challenges.
• Consumer sentiment falls to seven-month low; spending intentions drop as savings caution increases in Germany.
• Japan’s inflation dips to 10-month low as energy costs ease.
• UK retail sales stumble in October amid budget uncertainty.

United States

Fed's economic outlook: steady growth and cautious rate cuts

The Federal Reserve's latest meeting notes present a cautiously optimistic view of the US economy. Consumer spending and a stable job market are driving growth, though inflation remains a concern. The Fed has slightly reduced interest rates to support economic stability and plans to conclude its balance sheet runoff by mid-2025. While global events, such as a strong US dollar and diverging international policies, impact markets, the Fed remains focused on achieving steady economic growth and stable prices without overreacting to short-term fluctuations.

Core PCE inflation remains steady, marking six-month high

In October 2024, the US core Personal Consumption Expenditures (PCE) price index rose 0.3% month-on-month, matching the previous month’s pace. On an annual basis, core PCE prices increased by 2.8%, the highest year-on-year rise in six months. The data shows persistent inflationary pressures, particularly in services, while prices for goods slightly declined. These trends suggest inflationary dynamics are still a key concern for policymakers.

Durable goods orders rise, but miss forecasts

New orders for US manufactured durable goods increased by 0.2% month-on-month in October 2024, to $286.561 billion. While this was an improvement from September's 0.4% decline, it missed expectations of a 0.5% gain. The modest growth indicates ongoing challenges in the manufacturing sector, as demand remains limited despite the rebound.

US GDP grows 2.8% in Q3, driven by consumer spending

The US economy expanded at an annualised rate of 2.8% in Q3 2024, supported by robust consumer and government spending. Personal spending grew at its fastest pace since Q1 2023, although trade and housing investments remained headwinds. Strong consumer confidence and government consumption underpinned growth despite external pressures.

Personal income grows as spending slows.

US personal income grew by 0.6% month-on-month in October 2024, the largest increase in seven months. The growth was driven by higher compensation and asset income. Personal spending grew at a slower pace of 0.4%, with service expenditures leading the rise. Despite inflation and high interest rates, income growth and consumer spending demonstrate the resilience of the US economy.

Germany

Manufacturing PMI shows slight improvement, but contraction continues.

Germany's manufacturing PMI rose to 40.8 in November 2024, up from 39.6 in October, signalling a marginal improvement. However, the manufacturing sector continues to contract, with demand still declining. New orders were weak, and production levels remained below previous months. Although the PMI uptick suggests some stabilisation, concerns about future economic growth persist, driven by domestic challenges and international risks, including potential trade tariffs and political uncertainty.

Consumer sentiment drops to seven-month low.

Germany’s GfK Consumer Climate Indicator fell to -23.3 points in December 2024, the lowest level since May and below expectations of -18.6. This decline reflects growing recession fears, rising unemployment, and sluggish growth forecasts, which have significantly affected consumer confidence. Income expectations dropped to a nine-month low of -3.5, while concerns about job security and industrial layoffs added to the economic uncertainty.

Reduced spending intentions and increased savings caution.

Consumer spending intentions weakened, with the purchasing index slipping to -6, a level lower than during the early days of the pandemic. In contrast, there was a notable rise in savings intentions, which increased by 4.7 points, indicating greater financial caution among households. The economic outlook remains grim, with the GfK economic indicator continuing to decline for the fourth consecutive month, now standing at -3.6 points. Forecasts for GDP growth in 2024 and 2025 remain modest, at just 0.4%. Economic uncertainty and low income confidence are likely to keep consumer sentiment subdued through the end of the year.

Japan

Japan’s inflation dips to 10-month low as energy costs ease.

Japan’s inflation rate eased to 2.3% in October 2024, the lowest since January, thanks to slower increases in electricity and gas prices. Energy subsidies introduced earlier this year have softened the blow, while costs for furniture, culture, and communication also saw smaller rises. However, food, housing, and transport prices ticked up slightly. Core inflation matched the headline rate at 2.3%, edging above expectations of 2.2%. Monthly, prices rose 0.4%, reversing September’s slight drop.

United Kingdom

UK retail sales stumble in October amid budget uncertainty

Retail sales in the UK took a hit in October, dropping 0.7% from the previous month, much worse than expected and the biggest drop in four months. Non-food stores saw the sharpest declines, with clothing sales falling 3.1% after a strong run driven by seasonal sales. Online sales also dipped by 1.2%. Retailers are pointing to low consumer confidence and worries about the upcoming Budget as key reasons for the slowdown. On a brighter note, sales were up 2.4% compared to last year, though not as much as analysts had hoped.

Regulation round-up

FCA announces UK Crypto Regulation Roadmap for 2026.

The UK's Financial Conduct Authority (FCA) has outlined a roadmap to fully regulate crypto assets by 2026, aiming to create a safe, competitive, and sustainable market. Plans include consultations on market abuse, stablecoins, custody, and prudential elements.

Crypto ownership in the UK is rising, with 12% of adults now owning crypto, up from 10%. Average holdings have increased, but many remain unaware of the lack of investor protections. The FCA continues to combat scams, removing over 900 fraudulent websites since October 2023. While regulation is expected to address risks, crypto investing remains volatile and high-risk.

Stay vigilant against scams this holiday season.

As the holiday season approaches, the Australian Communications and Media Authority (ACMA) warns shoppers to be on high alert for scams, especially around major retail events such as Black Friday, Cyber Monday, and Boxing Day sales. Scammers often impersonate well-known brands, businesses, and delivery services to steal personal or financial information.

Common scams: parcel delivery and fake online stores

One of the most prevalent scams is parcel delivery fraud. Scammers pose as delivery services like Amazon, Australia Post, DHL, and StarTrack, attempting to trick individuals into providing personal or financial details. These scams typically involve misleading text or email messages asking for re-delivery arrangements, updates to delivery details, or payment for parcel delivery.

To protect yourself, avoid clicking on any links in suspicious messages. Instead, verify the sender’s contact details through official websites, apps, or tracking numbers received at the time of purchase.

Fake online store scams are also widespread, particularly during sales events. Scammers set up fraudulent websites offering ultra-low prices to lure unsuspecting shoppers. If you receive an unsolicited message with a link to a retail website, ensure that the URL is genuine by checking for independent reviews or verifying it through trusted sources.

What to do if you’ve been scammed.

If you think you’ve fallen victim to a scam, contact your bank immediately to halt any payments and notify your telecommunications provider. To help protect others, report the scam to ScamWatch. Sharing your experience can assist authorities in tracking scammer activities and reduce their impact. By staying informed and talking openly about scams, we can collectively reduce their power.

ASICs provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

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