Cointree Crypto Market Update - October 18th 2023
Market report for traders
🔮 BTC and altcoins
Over a turbulent 7 days, Bitcoin ends at AU$44,684, moving +0.32% at the time of writing. Ethereum sits at AU$2,458, moving -3.41% week-on-week. In other altcoin movements, Solana falls +4.77%, Cardano -3.97%, and XRP by -4.56%.
🗞 What’s happening in the news?
Did that unexpected surge in Bitcoin's price catch your eye? Ours too. Bitcoin's value recently swung from AU$43,800 to AU$47,100, all thanks to an erroneous report, which wrongfully stated that a Bitcoin spot ETF received the green light.
The impact? A whopping US$100 million was liquidated within a mere 60 minutes. However, post this brief spike, Bitcoin settled back at AU$43,000 after analysts and reporters cast their suspicions. The crunching numbers from CoinGlass? Liquidations to the tune of US$81 million in shorts and US$31 million in longs. As a reminder, the SEC has yet to nod to any Bitcoin spot ETFs. The BlackRock application, as per Bloomberg, remains pending.
In other news, FTX has plans to reimburse its creditors, ensuring they reclaim up to 90% of their holdings with the platform prior to its insolvency. This proposal, which is set to be lodged by mid-December, is subject to the US Bankruptcy Court's perusal. The repayment model is structured into three distinctive asset pools. Crucially, for claims not exceeding US$250,000, FTX ensures a full settlement without deductions. Yet, the restitution could be influenced by variables like taxes, official claims, and volatile token prices.
Adding to the financial drama, Nishad Singh, ex-Director of Engineering at FTX, has confessed to his fraudulent dealings. In a stunning revelation during Sam "SBF" Bankman-Fried's criminal trial, Singh disclosed that FTX had splurged US$1.3 billion on celebrity endorsement pacts and had borrowed a massive US$13 billion from its own crypto exchange, an act Bankman-Fried was reportedly well-aware of. Singh further alleged SBF's proposal of a US$120 million investment to acquire the Telegram messaging app and the illicit use of FTX user assets for political donations. As of now, Bankman-Fried faces a multitude of fraud accusations and maintains his innocence.
📖 What we’ve been reading
Reddit Halts Crypto Rewards Due to High Ethereum Fees “The decision underscores businesses’ complexities when integrating cryptocurrency incentives into their platforms.” Read more
Genesis Halts Withdrawals After Court Orders to Pay $175M to FTX “Reports suggest that Genesis has allegedly paused customer withdrawals within its lending division.” Read more
Uniswaps Fees are Changing “The fee will only be charged on swaps done through Uniswap Labs’ front end on certain tokens like ETH, USDC, USDT, EUROC, and DAI” Read more
Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.