The impending liquidation of FTX’s crypto assets dampens market sentiment Bitcoin (BTC) reached a high of $26,401.24 in the last seven days.
FTX, the beleaguered corporation whose meltdown triggered the ongoing crypto winter, is back in the spotlight as it attempts to liquidate its $3.4 billion in crypto assets. The news has caused an overall'sell' feeling among investors, resulting in a bleak outlook for the market. However, in its official leaders' statement, the recently concluded G20 Summit in New Delhi presented a favourable stance on crypto regulation as benefits of central bank digital currency (CBDCs). It remains to be seen how the next G20 finance summit in October will result in some optimism. Before we continue, readers should be aware that the general crypto market and coin prices are quite volatile. There are no surefire strategies for predicting how cryptocurrencies will behave in the future. This article is intended to help investors stay current on market scenarios and major events that have already occurred, as well as some impending events worth mentioning. Before making any investment decision, investors should conduct their own research. Crypto Prices Over The Past Week The global crypto market cap was $1.05 trillion on Monday (September 4). The price of BTC was over $26,000, while the price of ETH was around $1,640. A week later, the whole market capitalization had fallen to $1.03 trillion. Crypto Events To Note FTX is expected to obtain legal authority to liquidate around $3.4 billion in cryptocurrency. According to speculation, FTX may receive approval for this liquidation by September 13, raising concerns among stakeholders about the potential impact on the market. According to FTX's legal filings, the company intends to sell digital assets worth up to $100 million on a weekly basis, with the option to increase this amount to $200 million on occasion. It is widely assumed that the FTX action will raise selling pressure among crypto owners. Furthermore, financial experts representing FTX supplied a detailed inventory of individuals and businesses who received pay as part of the company's marketing campaigns in a court file covering more than 180 pages. This disclosure is critical for determining whether these payments meet the conditions for insolvent firms to reclaim funds. Among the awardees are celebrities such as Shaquille O'Neal, a former basketball player who earned $750,000. Furthermore, tennis wonder Naomi Osaka received more than $300,000 in compensation, while former baseball star David Ortiz received more than $270,000. Trevor Lawrence, an American football quarterback, was also on the list, having received more than $200,000. Meanwhile, Prime Minister Narendra Modi stated on Saturday that the G20 had secured a unanimous agreement on a leaders' declaration. During his address to the leaders gathered in New Delhi, he acknowledged this achievement to the collective efforts of all participating teams and announced the approval of the G20 Leaders Summit Declaration. Among other notable developments, it appears that the long-debated global coordination surrounding cryptocurrency regulation has made a substantial step forward. According to Finance Minister Nirmala Sitharaman, there is emerging worldwide agreement on policies governing virtual digital assets (VDAs). "There is a global push for more transparent policies regarding crypto assets," Sitharaman said, "and we are witnessing the emergence of a global consensus." The Union minister also stated that the presidency will engage with the IMF and the Financial Stability Board (FSB) to build a globally coordinated regulatory framework for cryptocurrencies. This might be viewed as a beneficial move, as official laws would not only provide the industry with much-needed respectability, but will also prevent unscrupulous actors from misusing assets and avoid mishandling of clients' money, as seen with FTX. The IMF-FSB study on crypto assets will be discussed at the upcoming G20 finance ministers and central bank governors conference in October.
Leave a reply