Bitcoin Price: US$ 60,670.48 (-0.33%)
Ethereum Price: US$ 2,364.10 (-3.42%)
The SEC has filed a notice of appeal in the Ripple lawsuit, seeking to overturn a ruling that determined secondary sales of Ripple’s XRP do not qualify as securities; while this ruling was seen as a victory for Ripple, the SEC maintains that early sales to institutional investors did constitute securities sales, underscoring the ongoing regulatory scrutiny in the cryptocurrency space. In other news, the FTX estate plans to auction about 22 million Worldcoin tokens valued at approximately $38 million on Oct. 3, with bids starting at $2.5 million despite the tokens facing a four-year unlocking period, prompting critics to raise concerns over FTX’s fire sales, which previously sold digital assets at significant discounts, leaving creditors dissatisfied with their potential recovery. Meanwhile, rumours of imminent payouts from FTX to creditors caused a spike in the price of FTT by over 70%, even though the actual confirmation hearing is scheduled for Oct. 7; alongside this, an analysis indicates that Bitcoin whales have not realised enough profit to sell their holdings, with geopolitical tensions in the Middle East leading to substantial outflows from U.S.-based Bitcoin ETFs and concerns about a potential price floor for Bitcoin amid market volatility. Veteran analyst Willy Woo remains optimistic about Bitcoin’s long-term potential but suggests it may take time to reach its previous all-time high of $74,000, predicting a sideways trading pattern until late 2024.
Recent data shows that Bitcoin open interest has surged past $35 billion, raising concerns among analysts about potential market overheating, as this level has historically coincided with price peaks; however, following this spike, open interest dropped about 9% to $32.32 billion, with Bitcoin’s price also declining amid escalating geopolitical tensions. In the cryptocurrency sphere, Bitwise has filed for the first spot XRP exchange-traded fund (ETF) with the SEC, aiming to offer investors exposure to XRP’s value and using Coinbase as its custodian; while this filing is seen as strategic, industry analysts are speculating about its timing in relation to the upcoming November elections. Meanwhile, Ripple has received in-principle license approval from the Dubai Financial Services Authority to establish operations in Dubai, enabling it to offer cross-border payment services for both fiat and digital assets. Additionally, Franklin Templeton has launched its OnChain US Government Money Fund on the Aptos blockchain, marking a significant step in integrating traditional finance with blockchain technology, with the fund already surpassing $427.95 million in assets.
Kraken has announced it will cease support for the privacy token Monero in the European Economic Area, effective October 31, 2024, due to regulatory and compliance obligations, giving users until December 31 to withdraw their XMR tokens, after which any remaining will be converted to Bitcoin. This regulatory shift follows broader EU prohibitions against privacy-focused tokens, contributing to an 8% drop in Monero’s price following the announcement. Meanwhile, investment outflows from the Fidelity Ethereum Fund reached an all-time high of over $25 million, reflecting pressures on the Ether ETF market, while spot Bitcoin ETFs also recorded significant outflows amidst a decline in Bitcoin’s price amid rising tensions in the Middle East. As geopolitical tensions escalated, Bitcoin’s price fell more than 3%, countering the surge in traditional safe-haven assets like gold, which rose amid market uncertainty. Analysts highlighted that Bitcoin’s behaviour during such crises calls into question its status as a safe-haven asset, suggesting that it may act more like a risk asset than a store of value.
Source: https://cointelegraph.com
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