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24 Crypto Update, 11 Oct: After PPI and FOMC minutes, crypto fell

Key Takeaways
  • Leading crypto tokens saw significant declines on Wednesday following the release of the PPI and FOMC Minutes
  • Bitcoin trades below $27,000, while Ethereum holds at $1,550
  • The crypto market's total cap now hovers around $1.09 trillion, reflecting a 0.30% decrease
12-Oct-2023 By: Lokesh Gupta
24 Crypto Update, 11

September's US PPI Inflation Surge Raises Concerns for Crypto

On Thursday, Bitcoin and various other cryptocurrencies faced challenges as potential buyers chose to stay on the sidelines, even as the equity market experienced a robust rally and bond yields decreased. The US Producer Price Index (PPI) for September exceeded initial expectations slightly, and the release of the US Federal Reserve's minutes indicated that a majority anticipate another series of interest rate hikes to conclude the ongoing tightening cycle.

In the past 24 hours, the cryptocurrency market recorded a 13.30% increase in total volume, reaching $27.05 billion. DeFi contributes $2 billion, accounting for 7.40% of the total volume, while stable coins make up $25.56 billion, representing 94.49%. Bitcoin's dominance is at 49.74%, down by 0.48% over the day.

Major Events To Watch:

Crypto Fear and Greed:

In the past 24 hours, the cryptocurrency markets have experienced a significant decrease in value, causing a 2-point decline in the "Greed and Fear Index." Consequently, the index now registers at 45 on its 0 to 100 scale.

Latest Market Update: 

Bitcoin fell below $27,000 yesterday due to PPI data and FOMC Minutes, with other major altcoins, including Ethereum, Dogecoin, Ripple, and Litecoin, also seeing losses. These declines were partly driven by concerns related to Middle East events. Loom Network surged nearly 10% in the last 24 hours, while THORChain dropped by about 7%, marking the day's top gainer and loser, respectively.

Major Worldwide News Update:

  • According to the Wall Street Journal, data from Elliptic, a forensics firm, and BitOK, a Tel Aviv software company, reveals that the Hamas terrorist organization and its affiliates have received approximately $93 million in cryptocurrency donations from August 2021 to June 2023. Cryptocurrency is frequently condemned for being used as a clandestine means of financing by such militant groups.

  • The Federal Open Market Committee (FOMC) met to discuss higher-than-expected US PPI data, considering a rate hike before year-end. This news pressured the crypto market, with Bitcoin falling below $27,000. Rising Bitcoin futures and options interest may indicate investor greed, with the current market resembling a volatile period in 2019. All await US CPI data for further insights.

  • The FTX trial has exposed a plot to intensify regulatory scrutiny on Binance, implicating FTX's involvement. Evidence includes a revealing to-do list authored by Alameda Research's CEO, Caroline Ellison, who was romantically involved with FTX's Sam Bankman-Fried. The trial has broader implications for the crypto industry, with increased regulatory scrutiny on Binance and growing concerns about compliance and transparency in the digital asset sector.

  • Caroline Ellison's testimony in Sam Bankman-Fried's trial raised concerns about potential Bitcoin price manipulation and revealed Alameda Research's $13 billion borrowing from FTX clients. The defense's strategy to highlight legal team involvement was denied by Judge Kaplan.

  • The Bahamas Prime Minister, Philip Davis, toasted the crypto ecosystem's resilience during a dinner celebrating the D3 Bahamas conference, aimed at updating crypto regulations. He acknowledged FTX's debacle but emphasized the industry's staying power. The Bahamas has introduced consumer protection measures post-FTX's collapse, highlighting the importance of regulatory compliance and the nation's commitment to maintaining a robust crypto industry.

  • In the trial of former FTX CEO Sam Bankman-Fried, New York District Judge Lewis A. Kaplan made crucial rulings. The judge rejected introducing evidence related to FTX's bankruptcy proceedings and dismissed arguments about the lack of crypto regulation in the U.S., creating a challenging landscape for the defense. However, there's a possibility to present charitable contributions as evidence with conditions. Witness Caroline Ellison's testimony highlighted Bankman-Fried's influence on significant financial decisions.

  • In the ongoing trial of Sam Bankman-Fried, former Alameda Research CEO Caroline Ellison testified that Bankman-Fried planned to raise funds by selling FTX equity to Saudi Arabia's Crown Prince Mohammed bin Salman. This revelation was part of Ellison's testimony, which also included discussions on misleading Genesis lenders about FTX Derivatives Exchange funds and other plans outlined in her online journal. Bankman-Fried's legal team has been denied court approval to cross-examine Ellison and another witness, Gary Wang.

  • Coinbase has added Big Time (BIGTIME), a multiplayer role-playing project, to its spot market. Developed by a team with experience in popular games like Fortnite and Call of Duty, BIGTIME aims to create a platform for players to own, trade, and create NFTs. After the announcement, BIGTIME's price surged 71%, reaching approximately $22 million in trading value, with a notable trading volume increase. The project has received substantial investments and partnered with OKX.

  • Caroline Ellison, the former CEO of Alameda Research, testified in Sam Bankman-Fried's trial, confessing to providing seven misleading balance sheets to Genesis lenders. These sheets aimed to hide Alameda's use of funds from FTX Derivatives Exchange, particularly a concealed $10 billion loan. Ellison expressed discomfort with her actions and largely attributed blame to Bankman-Fried for FTX's collapse. The trial's outcome hinges on the jury's perception of responsibility. Prosecutors plan to conclude their case in late October, and the defense will call witnesses. Bankman-Fried has pleaded not guilty to multiple fraud-related charges at FTX.

COIN GABBAR Views: Is BTC's dip below $27k an attractive opportunity? Should we anticipate market turbulence before a potential bull run due to the upcoming Bitcoin halving? Is Bitcoin under pressure, and will it breach the $25,000 level or show signs of recovery? Can we expect October to be a bullish month for the cryptocurrency space? Stay tuned for the latest news at

Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.

For More News: Crypto Daily Roundup, 11 Oct: Crypto down on Israel-Hamas tension

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