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24 Crypto Update, 10 Sep: FTX Liquidation Affects Market Sentiment

Key Takeaways
  • On Monday morning, cryptocurrency tokens faced selling pressure in trading
  • Bitcoin is trading below the $26,000 threshold, while Ethereum has maintained its position above $1,600
  • The collective market capitalization of cryptocurrencies dropped, reaching a value of $1.07 trillion
11-Sep-2023 By: Lokesh Gupta
24 Crypto Update, 10

Crypto trading down due to Wall Street rate hike concerns

On Monday, Bitcoin fell below $26,000, Ether approached $16,000 due to the Ethereum founder's hacked account. Top 10 cryptocurrencies experience losses, with Solana's SOL plunging over 6% in 24 hours. Bankrupt FTX exchange may gain approval to sell $3.4 billion in crypto holdings, adding to selling pressure. U.S. stock futures rebounded after Wall Street's weekly losses on Friday. Investors await forthcoming U.S. inflation data for hints on interest rate policy.

Prime Minister Narendra Modi proposed a virtual G-20 session in late November to review the recent summit's decisions. He emphasized India's continuing presidency until November 30 and called for UN Security Council expansion and global institution reforms. Brazil will assume the presidency on December 1.

Crypto Fear and Greed:

In the last 24 hours, the cryptocurrency markets have shown a relatively stable trend, resulting in limited fluctuations in the "Greed and Fear Index." Currently, the index is at a level of 40 out of a possible 100.

Latest Market Update: 

Bitcoin fell below $26,000, casting a bearish shadow on the market. Reports of FTX's $3.3 billion crypto asset liquidation contributed to selling pressure. Major altcoins, including Ethereum, Dogecoin, Ripple, Litecoin, and Solana, all experienced losses. Stellar (XLM) saw the largest gain, up 3%, while Memecoin Pepe (PEPE) suffered the biggest loss, down 8% in 24 hours.

Major Worldwide News Update:

  • FTX's new financial advisors aim to recover payments made to endorsers like Shaquille O'Neal, Stephen Curry, Naomi Osaka, and others before the exchange's bankruptcy. Court papers suggest that some payments can be reversed under Chapter 11 bankruptcy laws. Notably, FTX had sponsorship deals with these celebrities.

  • The SEC settled with Linus Financial over its crypto lending product, Linus Interest Accounts, without imposing penalties. The agency cited the company's cooperation and swift corrective actions as reasons for leniency. Linus Financial ceased offering the accounts and allowed existing investors to withdraw, demonstrating a cooperative approach to regulatory compliance. This approach contrasts with the agency's usual enforcement actions and highlights its evolving stance on crypto regulation.

  • The SEC has granted Nasdaq approval for its AI-based trading order type, Dynamic Midpoint Extended Life Order (M-ELO). This technology employs real-time reinforcement learning AI to enhance transaction efficiency, adapt to market changes, and improve liquidity. Nasdaq aims to provide innovative solutions for traders and improve market quality with this advancement.

  • The CFTC has imposed a $1.7 billion penalty and a ban on South African Bitcoin firm, Mirror Trading International (MTI), for defrauding investors in a fraudulent multilevel marketing scheme. Founder Cornelius Johannes Steynberg must pay the highest-ever $1.7 billion civil monetary penalty in a CFTC case.

  • The Terra Luna Classic community is voting on Proposal 11776 to halt USTC minting and reminting, aiming to restore USTC's $1 peg. It also prevents loopholes and encourages USTC burning. With an 85% "Yes" vote, it could enable entities like Binance to burn USTC. L1 Terra Classic Task Force plans a core upgrade.

  • 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.

  • Faruk Fatih Ozer, CEO of Thodex, a Turkish crypto exchange, received an 11,196-year prison sentence for alleged crimes including fraud, leading a criminal organization, and money laundering, involving over $2 billion from crypto investors. Ozer fled to Albania in April 2021, and his extradition to Turkey followed a lengthy legal process. The Thodex incident led to increased scrutiny of crypto firms and exchanges in Turkey amid economic challenges.

  • The founder of X3, Andrew, made startling accusations against Digital Currency Group (DCG) on Twitter. Andrew claimed DCG knew about certain firms' bankruptcies, engaged in high-risk trading, and had conflicting interests. DCG faces lawsuits from Genesis Global and U.S. authorities investigating fraud allegations. DCG denies all wrongdoing.

  • Former US Congressman Ron Paul suggests that BRICS, with Saudi Arabia as a new member, poses a threat to the US dollar's global dominance. Paul cites deals to accept non-dollar currencies for oil purchases as a challenge to the dollar's reserve currency status, driven by concerns about US debt and the weaponization of the dollar.

  • Nvidia and Reliance Industries have partnered to develop a large language model for AI based on regional Indian languages. Nvidia provides computing power while Reliance focuses on AI applications, including a local language app for farmers. The AI infrastructure will be hosted in AI-ready data centers, managed by Reliance's Jio, targeting India's growing AI potential.

  • Several Indian banks, including State Bank of India, Kotak Mahindra Bank, Yes Bank, Axis Bank, HDFC Bank, and Canara Bank, have introduced Unified Payments Interface (UPI) interoperability on the Digital Rupee application as part of the RBI's Central Bank Digital Currency (CBDC) pilot project. This allows Digital Rupee app users to make payments by scanning any UPI QR code, promoting CBDC adoption without requiring merchants to replace their existing QR codes.

COIN GABBAR Views: Will the Death Cross jeopardize Bitcoin's $25K support? Has Bitcoin already hit its 2023 peak? Are we headed for a prolonged downturn? What's in store for major cryptocurrencies while they stay relatively stable? What impact can we expect from the G-20 crypto bill in the near future? 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, 07 Sep: Crypto market shows slight recovery