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24 Crypto Update, 11 Sep: Cryptocurrencies experience a sharp decline

Key Takeaways
  • Leading cryptocurrency tokens experienced a decline in morning trading on Tuesday
  • Bitcoin traded below the $26,000 mark, while Ethereum maintained its position below $1,600
  • The total market capitalization of cryptocurrencies was slightly lower, standing at $1.07 trillion
12-Sep-2023 By: Lokesh Gupta
24 Crypto Update, 11

Bitcoin chart shows 'death cross': 50-day vs. 200-day.

On Tuesday morning, Bitcoin and various other crypto tokens faced challenges as traders grew apprehensive about the potential selling pressure stemming from the bankrupt exchange FTX. This downward movement occurred as market participants were processing the likelihood of FTX gaining approval from the bankruptcy court to liquidate assets from its $3.4 billion cryptocurrency holdings.

In a collaborative policy paper released by the IMF and FSB concerning cryptocurrencies, a cautionary message was conveyed to jurisdictions. They were advised against imposing sweeping bans as a means to address risks associated with the crypto sector. Instead, the paper recommended the adoption of precise and well-considered restrictions, alongside the implementation of sound monetary policies. It stressed that these targeted measures could prove especially beneficial for emerging economies.

Major Event to be watch

Crypto Fear and Greed:

The cryptocurrency market has seen a significant increase in negative sentiment in the last 24 hours. This shift has resulted in a 10-point drop in the cryptocurrency sentiment index, which now stands at 30 out of 100.

Latest Market Update: 

Tuesday morning saw Bitcoin, the renowned cryptocurrency, maintaining a position below $26,000. Meanwhile, alternative cryptocurrencies like Ethereum, Dogecoin (DOGE), Ripple, Litecoin, and Solana displayed a mix of outcomes, with some seeing gains and others incurring losses. Notably, Trust Wallet Token stood out with an impressive surge of over 8% in the past 24 hours. Conversely, Arbitrum faced the most significant decline, witnessing a drop of more than 5% during the same time frame.

Major Worldwide News Update:

  • Bloomberg analyst Mike McGlone warns of a looming severe U.S. economic contraction, citing a stark drop in home sales due to rising interest rates, resembling conditions before the 2008 financial crisis. He also notes the Russell 2000's downward trend, indicating reduced liquidity, with potential market support still about two years away.

  • Hackers breached Ethereum co-founder Vitalik Buterin's social media account to promote a fraudulent NFT scam. The false announcement claimed ConsenSys was giving away NFTs, leading victims to a phishing site, resulting in losses exceeding $691,000. Binance CEO Changpeng Zhao emphasized the need for improved Twitter account security.

  • A wallet linked to $24 million in stolen cryptocurrencies deposited $936,000 worth of Ether (ETH) into Tornado Cash, an Ethereum privacy tool. The funds were stolen in a phishing attack, with the thief also taking $15.6 million in Lido staked Ether and $8.5 million in Rocket Pool Ether. The deposit aims to obscure the origin of the assets, complicating tracking efforts. Tornado Cash faced US Treasury sanctions in August 2022 over concerns of money laundering, with developers facing legal issues.

  • Tether and Bitfinex's CTO, Paolo Ardoino, faces a pivotal deposition in a long-standing class-action lawsuit alleging financial misconduct and seeking $1.4 trillion in damages. Tether's dominant position in the stablecoin market and regulatory concerns make this a critical moment for both companies.

  • G20 nations have endorsed the Financial Stability Board's crypto asset regulations, signaling a positive shift for Indian crypto investors. India seeks international consensus on crypto rules within G20 and beyond, moving away from previous staunch anti-crypto stances. The focus is now on implementing the agreed-upon framework.

  • Binance, the world's largest crypto exchange, is discontinuing its Sandbox NFT Staking Program and ending support for Polygon network's LAND NFTs on its NFT Marketplace, citing a commitment to improving its product offerings. Users must withdraw their Polygon NFTs from Binance by December 31.

  • The U.S. awaits the first spot Bitcoin ETF approval from the SEC, expected by early 2024. Spot ETFs may challenge existing futures-based ones, offering lower costs and better tracking, potentially becoming a $100 billion market, impacting Bitcoin futures ETFs.

  • Former Meta and PayPal executive David Marcus envisions Bitcoin as a foundation for a global internet payment protocol through his venture, Lightspark. This diverges from Bitcoin's 'digital gold' narrative but faces technical challenges. Lightspark aims to build an overlay network on Bitcoin's blockchain for more efficient transactions.

  • Five individuals, including four Chinese nationals and a Lao citizen, were arrested for orchestrating a cryptocurrency scam that defrauded victims of 2.7 billion Baht (approximately $76 million) in Thailand. Over 3,280 people fell prey to the scam, which promised high returns on investment through foreign mobile apps. The suspects face charges of transnational crime, fraud, computer system manipulation, and money laundering. Thailand is intensifying efforts to combat cryptocurrency-related scams and misleading ads.

  • Tron founder Justin Sun is contemplating acquiring FTX's assets to mitigate potential market repercussions. FTX seeks court approval to liquidate $3.4 billion in crypto assets, mainly comprising Solana (SOL), amid concerns of market pressure. Sun's move aims to reduce the impact on the crypto community.

  • FTX, grappling with a $7 billion bankruptcy estate and customer claims of $16 billion, contemplates a potential relaunch labeled "FTX 2.0." Assets include $1.16 billion in Solana and $560 million in Bitcoin. The estate aims to select a bidder by October 16, with plans for a 2024 relaunch. Real estate holdings in the Bahamas valued at $222 million also revealed.

  • Binance and the SEC have jointly requested a protective order for confidential information in their ongoing securities lawsuit. This order would classify certain documents as "CONFIDENTIAL or HIGHLY CONFIDENTIAL – ATTORNEYS’ EYES ONLY" and limit access to authorized parties. The lawsuit, filed in June 2023, involves allegations of unregistered securities sales against Binance and its CEO Changpeng Zhao.

COIN GABBAR Views: Is the ongoing crypto market selling a cause for concern? Does the formation of a 'Death Cross' in Bitcoin signal trouble for bulls? Has Bitcoin already reached its peak for 2023, or are we bracing for an extended period of decline? 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: 24 Crypto Update, 10 Sep: FTX Liquidation Affects Market Sentiment