Bitcoin Price: US$ 65,634.05(-0.38%)
Ethereum Price: US$ 2,657.62 (-1.43%)
Rumours that FTX will begin distributing reimbursement funds on September 30, 2024, are false as the plan has yet to be approved, with the next hearing set for October 7. If confirmed, smaller claimants might receive funds by year-end 2024, while larger claims could be processed by mid-2025, though the plan faces opposition from creditors who prefer in-kind reimbursements over cash. Analysts estimate FTX payouts could inject $5 billion to $8 billion into the market, potentially boosting prices. Meanwhile, CryptoQuant CEO Ki Young Ju stressed the need for smart regulation in Web3 to prevent scams and build trust, despite divided community opinions on the implications of increased oversight. Former Chinese finance minister Lou Jiwei urged China to closely monitor crypto advancements, citing risks like volatility and money laundering, and emphasised the US’s shift toward crypto acceptance, particularly with Bitcoin ETFs, as a point Chinese policymakers should consider in shaping digital economy strategies. Despite China’s 2021 ban on crypto mining, the country still controls over 55% of the Bitcoin network hashrate, although dominance is gradually shifting toward US mining firms, with CryptoQuant noting that US pools now manage around 40% of operations, serving primarily institutional miners.
The Dutch Authority for the Financial Markets (AFM) warned of pump-and-dump risks ahead of the EU’s new Markets in Crypto-Assets Regulation (MiCA), which will take effect on December 30 and prohibit market manipulation in the region. While the regulation aims to boost transparency and market integrity, some fear it could drive crypto firms to relocate to the Middle East. Meanwhile, US spot Bitcoin ETFs saw over $1.1 billion in inflows this week—the highest since mid-July—led by BlackRock and ARK 21Shares, as Bitcoin rallied 13.8% following a Federal Reserve rate cut. Ether ETFs also attracted significant inflows, pushing combined US spot ETF assets to $18.8 billion since their January launch. In a separate development, billionaire investor Christian Angermayer relocated from the UK to Switzerland’s Bitcoin hub, Lugano, due to the UK’s planned tax changes targeting offshore wealth. Angermayer, who likened Bitcoin to psychedelics for their potential to liberate people, will keep his London office while continuing to invest in crypto and biotech from his new base.
FTX creditors are set to receive only 10–25% of their crypto back according to updated bankruptcy documents, sparking outrage as reimbursements are based on the time of the bankruptcy filing when Bitcoin was valued at just $16,000—much lower than today. Some creditors have described the plan as unfair, while others emphasised the ongoing emotional toll of the losses. The US trustee overseeing the bankruptcy process has challenged the plan for offering excessive legal protections to FTX administrators, and the SEC may oppose it if creditors are paid in stablecoins instead of actual cryptocurrencies. Meanwhile, the Crypto Fear & Greed Index has surged into “Greed” territory for the first time since July, reaching a score of 64 as Bitcoin touched $66,000, prompting analysts to predict a potential Q4 rally driven by fear of missing out. VanEck named Bitcoin the top-performing asset of 2024, having gained 124% over the last year. In a separate development, Cantor Fitzgerald CEO Howard Lutnick has called for Bitcoin to be classified as a commodity like gold and oil, pushing for clearer regulations, and the firm’s $2 billion BTC lending program aims to provide leverage to Bitcoin holders, underscoring the growing institutional interest in digital assets.
Binance founder Changpeng Zhao (CZ) was released from custody on Sept. 27, causing a slight dip in Bitcoin and BNB prices, as CZ currently holds 64% of the total BNB supply, valued at $57 billion—down from $61 billion in June 2024. The Department of Justice charged Binance and CZ with violating the Bank Secrecy Act in 2023, and although a $4.3 billion settlement was reached with the SEC, Binance is now required to operate under independent monitoring. Meanwhile, the Fed’s recent rate cut is projected to slash $625 million in interest income for stablecoins, which collectively hold $125 billion in US Treasury bills, and with additional rate cuts anticipated, stablecoins could lose up to $1.56 billion in total revenue. Tether leads in Treasury holdings with $93.2 billion, followed by Circle’s USDC at $28.7 billion. Although stablecoins’ market capitalisation grew to $172 billion, trading volumes on centralised exchanges fell by 39.4%, signalling potential revenue pressures. In the UK, blockchain-based fantasy sports operator Sorare has been charged by the Gambling Commission for operating without a license. Sorare, which uses NFTs to run fantasy sports leagues, denies that its platform qualifies as gambling and is preparing to challenge the charges in court on Oct. 4, making this a rare enforcement action against a crypto-related firm after a lengthy investigation that began in 2021.
Source: https://cointelegraph.com
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