FTX, the embattled company whose collapse caused the current crypto winter appears to be in the news once again as it seeks to liquidate its crypto assets worth $3.4 billion. The news has generated a general "sell" sentiment among investors, creating a gloomy outlook for the broader market. However, the recently concluded G20 Summit in New Delhi offered a positive outlook on the regulation of cryptocurrencies as benefits of central bank digital currency (CBDC) in the official statement of its leaders. It remains to be seen how the upcoming G20 financial meeting will translate into some positivity in October.
Before continuing, readers should note that the overall cryptocurrency market and coin prices are extremely volatile in nature. There are no foolproof methods to determine how cryptocurrencies are expected to behave in the future. This article aims to help investors stay abreast of the current market scenarios and major events that have already taken place, as well as some upcoming developments worth mentioning. Investors are advised to conduct their own research before taking any calls.
Cryptocurrency prices over the past week
Last Monday (September 4), the overall crypto market capitalization stood at $1.05 trillion. BTC price stood at around $26,000, ETH price stood at around $1,640.
A week later, the overall market capitalization fell to $1.03 trillion.
Check out the top cryptocurrency prices today
The total DeFi volume stands at $1.79 billion, representing 8.41 percent of the total 24-hour market volume. In the case of stablecoins, the total volume amounts to $19.37 billion, 90.84 percent of the total 24-hour market volume. According to CoinMarketCap, the overall market fear and greed index stood at "Fear", 35 points (out of 100).
BTC dominance, at the time of writing, was 48.56 percent.
Over the past seven days, Bitcoin reached a high of $26,401.24 (September 8) and a low of $25,476.79 (September 6).
Ethereum, on the other hand, recorded a high of $1,654.83 (September 8) and a low of $1,604.89 (September 10).
Crypto events to watch out for
FTX is expected to obtain legal approval for the liquidation of approximately $3.4 billion in cryptocurrencies. Speculation suggests that FTX could get the go-ahead for this liquidation before September 13, raising concerns among stakeholders about its potential impact on the market. FTX's legal filings indicate an intention to sell digital assets worth up to $100 million weekly, with occasional flexibility to expand this limit to $200 million.
It is mainly believed that the FTX move could lead to increased selling pressure among cryptocurrency holders.
Additionally, in a comprehensive court filing spanning more than 180 pages, financial consultants representing FTX have provided a comprehensive description of the individuals and entities that received compensation as part of the company's marketing campaigns. This disclosure is essential to assess whether these payments fall within the criteria that allow insolvent companies to claim funds.
Among the recipients listed are notable personalities such as Shaquille O'Neal, the former basketball pro, who received $750,000. Additionally, tennis sensation Naomi Osaka was compensated more than $300,000, while former baseball star David Ortiz received more than $270,000. American football quarterback Trevor Lawrence is also on the list, having received more than $200,000.
Meanwhile, on a positive note, Prime Minister Narendra Modi announced on Saturday that the G20 had reached unanimous agreement on a leaders' declaration. He attributed this achievement to the combined efforts of all participating teams and shared the adoption of the G20 Leaders Summit Declaration during his address to leaders gathered in New Delhi. Among several noteworthy developments, it appears that the long-debated global coordination on cryptocurrency regulation has taken an important step forward. Finance Minister Nirmala Sitharaman said there is a growing international consensus on policies related to virtual digital assets (VDA).
Sitharaman commented: “There is a global push for more transparent policies regarding crypto assets, and we are witnessing the emergence of a global consensus.” The Union minister also emphasized that the presidency will extend its support to the International Monetary Fund (IMF) and the Financial Stability Board (FSB) in establishing a globally coordinated regulatory framework for cryptocurrencies.
This could be considered a positive development, as official regulations will not only bring much-needed legitimacy to the sector, but will also ensure misuse of assets by bad actors and prevent FTX-style mishandling of client money. .
The next meeting of G20 finance ministers and central bank governors in October will discuss the IMF-FSB paper on crypto assets.
What Cryptocurrency Traders Are Saying About the Current Market Scenario
Mudrex co-founder and CEO Edul Patel told ABP Live: “Bitcoin has been trading above the $25,700 mark over the weekend. On Friday, the price of Bitcoin rose above $26,000. However, bullish momentum faltered amid bearish market sentiments, highlighting a tug-of-war between bulls and bears. Bitcoin is currently facing resistance at $26,500, while a drop in price from the current level would find support at $25,300. Bitcoin price has not gathered significant strength to make a sharp move. Bitcoin is likely to trade sideways for a few days. Meanwhile, Ethereum remains firm in its trading position above $1,600.”
WazirX Vice President Rajagopal Menon offered his opinion: “A general emphasis on the Common Reporting Standard and Cryptoasset Reporting Framework by G20 leaders indicates an incoming ecosystem where data is transparent. This could affect the sentiments of stakeholders around the world. The possible liquidation of FTX could trigger an asset sell-off in the coming weeks, a concern among market participants. Venture Capital continues to advance DeFi with hundreds of millions invested so far this year.”
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Disclaimer: Crypto products and NFTs are unregulated and can be very risky. There may be no regulatory recourse for any losses arising from such transactions. Cryptocurrency is not legal tender and is subject to market risks. Readers are advised to seek expert advice and carefully read the offering documents along with relevant relevant literature on the subject before making any type of investment. Cryptocurrency Market predictions are speculative and any investment made will be at the sole risk and expense of the readers.
