The majority of top cryptos are swimming in red as the market reacts to fears of a massive $3billion FTX liquidation. Ripple’s unlocking of one billion $XRP from its escrow system seemed to negatively impact the price of the token too (see chart below). Meanwhile, the world continues to await a global set of crypto regulations.
FTX’s upcoming $3bn liquidation triggers sell-offs
Discussions about the bankrupt crypto firm FTX initiating a massive $3bn liquidation have been making rounds in the crypto community. This has triggered traders, who have started to shed their holdings. According to analytics firm IntoTheBlock’s Lucas Outumuro, a key factor behind the discretionary selling is likely to be this upcoming liquidation of FTX’s vast digital asset portfolio. However, as of time of writing, the bankrupt firm has not confirmed the same nor has reported when they would conduct these liquidations.
SEC pushes the court to review prior ruling in Ripple case
Last Friday, the US Securities and Exchange Commission (SEC) submitted a filing requesting the court of the Southern District of New York to appeal its ruling on the agency’s lawsuit against Ripple Labs. The regulatory watchdog is now pushing the court to review its prior ruling by Judge Analisa Torres where it was noted that Ripple’s XRP sales on public exchanges to retail investors did not violate the securities law. Recently, Ripple also unlocked one billion $XRP from its escrow system in a series of several transactions carried at the start of this month. Ever since then, the coin’s price has been on a slump. On 5 September, the blockchain company relocked 800 million $XRP, which is 80% of the previously unlocked total, into two different escrows. In doing this, it kept 200 million of the token for itself, which it can deploy to the market at any moment. As per analysts, this could potentially impact the token’s price in the short term.
Cryptocurrencies await global regulations from G20
Delays in the implementation of global crypto regulations have come to affect the industry’s growth. According to the chief executive of Australian digital asset exchange BTC Markets, Caroline Bowler, this is one of the key challenges facing the cryptocurrency industry globally. In India, the G20 meeting has announced that member countries will be working together to develop a coordinated global regulatory framework for cryptocurrencies, cross-border cooperation and information sharing. As international organisations set the framework for a “harmonised regulatory environment”, it is important that governments and regulatory authorities act promptly to translate these guidelines into actionable regulations, said Bowler.
What’s going on with crypto today?
The global cryptocurrency market capitalisation has slid down, risking the crucial $1trillion mark as it stood at $1.06trn today. The market has been suffering a negative shift by 1.3% in the last 24 hours. Flagship crypto Bitcoin ($BTC) was trading at $25,660 at the time of press, down by about 1% in the last day. This influenced other top coins to follow the same path as they all traded in the red at the time of press. Only Tron ($TRX) was trading in the green in the list of top coins by market cap.
Which coins are down today?
The top loser within the top 100 cryptocurrencies by market cap was Rollbit Coin ($RLB) which has been down by almost 9% in the last 24 hours. It was followed by Arbitrum ($ARB) with an 8.6% decrease in price. $XRP is one of the other top coins which has suffered considerably today. The token is down by over 5%, changing hands for $0.472 as of writing.
Will crypto market recover?
The long-term outlook continues to to balance on the SEC approving the many spot Bitcoin ETF applications in the pipeline from the likes of BlackRock, Fidelity and Invesco. Watch this space.