24 Crypto Update, 02 Oct: Crypto Market Plunges as Bears Take Control

Bitcoin pulls back from a six-week high as bond yields rise

The crypto rally, including Bitcoin, was short-lived as it retreated on Tuesday. This downturn was driven by a sharp rise in bond yields, reducing interest in riskier assets. Increasing yields on the 10-year US Treasury, not seen since 2007, have raised expectations of prolonged high Federal Reserve interest rates to combat inflation. This has posed challenges for cryptocurrencies.

Over the past 24 hours, the cryptocurrency market witnessed a substantial 26.40% surge in total trading volume, hitting $43.47 billion. DeFi contributed $3.36 billion, comprising 7.73% of the market volume. Stablecoins dominated with $40.63 billion, representing 93.48% of the total 24-hour crypto market volume. Bitcoin's dominance also increased by 0.16% to reach 49.36% for the day.

Major Event to be watch

Crypto Fear and Greed:

Over the last 24 hours, the cryptocurrency markets have remained stable, leading to an unchanged "Greed and Fear Index" holding steady at the midpoint, 50, on its 0 to 100 scale.

Latest Market Update: 

Bitcoin dropped below $28,000 on Tuesday, with major altcoins like Ethereum, Dogecoin, Ripple, and Litecoin also in the red. Bitcoin SV surged 14% in 24 hours, while Memecoin PEPE was the biggest loser, down nearly 8%.

Major Worldwide News Update:

• Solana's rapid rise to the seventh-largest crypto by market cap has sparked tensions with Ethereum. A member of the Ethereum community criticized Solana as lacking understanding of value creation, prompting a response from Solana's co-founder, Anatoly Yakovenko, advocating for a stateless digital realm free from capitalist control.

• Binance.US and CEO Changpeng Zhao are facing a lawsuit in California, accused of unfair competition and market manipulation against rival FTX. The suit centers on tweets from Zhao regarding Binance's divestment in FTX's utility token, FTT, which allegedly depressed its price. The lawsuit seeks damages and disgorgement of gains. Both Binance and FTX also face separate SEC legal actions, adding complexity to the cryptocurrency exchange sector. Paradigm, a crypto venture capital firm, criticized the SEC for allegedly exceeding its jurisdiction in the case against Binance.

• Sam Bankman-Fried's FTX secured endorsements from Tom Brady and Gisele Bündchen, with Brady's deal reportedly valued at nearly $30 million in FTX cryptocurrency platform shares. However, as FTX faced difficulties, Brady distanced himself, calling it a betrayal. Meanwhile, entities linked to FTX are encountering legal troubles, with the SEC suing Prager Metis over indemnification clauses in client agreements.

• After half a decade of silence, the enigmatic Satoshi Nakamoto has resurfaced through their long-dormant X account, a persona closely associated with the creation of Bitcoin. In a recent communication, Nakamoto intriguingly described Bitcoin as a "predicate machine" and expressed a commitment to delve into uncharted territories not explicitly covered in the original Bitcoin whitepaper. Despite numerous individuals vying for the title of Satoshi Nakamoto, including the controversial Craig Wright, the true identity of Bitcoin's visionary creator remains shrouded in a persistent veil of mystery, leaving the crypto world in perpetual uncertainty.

• Craig Wright, who claims to be Bitcoin's creator, is facing increasing skepticism from former allies. Christen Ager-Hanssen, the former CEO of nChain Global, publicly departed from the organization, expressing doubt about Wright's identity as Satoshi Nakamoto. Calvin Ayre, another supporter, also voiced skepticism, and crypto lawyer John Deaton cast further doubt on Wright's claims. This development adds uncertainty to the ongoing debate surrounding Wright's credibility as Satoshi Nakamoto.

• The CFTC, led by Chair Rostin Behnam, emphasizes the need for regulatory oversight in the decentralized finance (DeFi) space. Concerns about unregulated DeFi exchanges have led to recent CFTC actions against platforms like Opyn, ZeroEx, and Deridex. Some, like Coinbase CEO Brian Armstrong, disagree with this approach, while others, like ZeroEx, are cooperating with regulators for clarity in the growing DeFi sector.

• House Committee Chairman Patrick McHenry has warned SEC Chair Gary Gensler of a potential subpoena if documents related to the FTX collapse and SEC's climate disclosure rule aren't provided. McHenry criticized Gensler's rulemaking approach and accused him of harming financial markets and investors. The threat of a subpoena complicates the SEC-Congress battle.

• Hong Kong's over-the-counter (OTC) crypto market thrived despite China's regulatory crackdown. It recorded $64 billion in transactions from July 2022 to June 2023, ranking fifth in East Asia. The strong OTC market in Hong Kong suggests a potential shift in China's stance on cryptocurrencies, possibly indicating greater openness to crypto initiatives. Hong Kong dominates in large institutional crypto transactions, with 50% exceeding $10 million, while retail trading below $10,000 accounts for only 4%. Surprisingly, China still ranks ninth in global crypto adoption despite its crackdown, with users and miners operating abroad or underground.

• Elon Musk criticized mainstream media, specifically CBS News' "60 Minutes," for biased reporting on Sam Bankman-Fried (SBF) of FTX Exchange, accusing them of sensationalism. This came amid SBF's alleged fraud charges. Musk advocates decentralized information platforms for diverse perspectives and community fact-checking. President Biden expressed concerns about decentralized sources, citing the changing news landscape influenced by platforms like Elon Musk's X.

• Kenya's parliamentary committee has recommended the immediate halt of the Worldcoin cryptocurrency initiative due to privacy concerns and the need for solid regulations. The initiative, co-founded by OpenAI's CEO Sam Altman, faced scrutiny for its iris scanning method to provide digital IDs. The committee calls for discontinuing on-ground activities until clear regulatory frameworks for virtual assets and providers are established. They also seek the Communications Authority of Kenya's intervention and blacklisting related IP addresses to ensure an internet blackout.

COIN GABBAR Views: Is Bitcoin commencing October with a bang? Could this mark the beginning of a new bull market? Is Bitcoin on the verge of a surge? Might Ethereum surpass Bitcoin in value?Stay tuned for the latest news at www.coingabbar.com

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.

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