Brutal Drop of Bitcoin and Altcoins: An Unexpected Plunge! 📉
Welcome to the Daily Tribune of Tuesday, October 1, 2024 ☕️
Hello Cointribe! 🚀
Today is Tuesday, October 1, 2024, and like every day from Tuesday to Saturday, we summarize the news from the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Partially sunny 🌤️
24h crypto recap! ⏱
Tether and Stablecoins Facing a Colossal Loss 💸
With the recent drop in interest rates from the Federal Reserve (Fed), Tether and other stablecoin issuers risk losing up to 625 million dollars in annual interest income. The majority of stablecoins reserves, including Tether’s at 80%, are invested in U.S. Treasury bills. However, with the drop in yields on these assets, these companies see their business model weakened.
In 2024, Tether generated 5.2 billion dollars in profits from these bonds, but this source of income is now threatened. To compensate, some companies like Tether are exploring diversification options, investing for example in the Argentine agro-industry. Nevertheless, it remains to be seen whether these strategies will be enough to offset the decline in bond yields, as competition within decentralized finance becomes increasingly pressing.
China on Alert Over Crypto Threat to the Global Economy 🚨
Former Chinese Finance Minister Lou Jiwei recently expressed concerns about the potential impact of cryptocurrencies on global financial stability, particularly after the approval of Bitcoin ETFs in the United States. According to him, price fluctuations of cryptocurrencies could provoke major economic imbalances, increasing risks related to terrorism financing and money laundering.
In China, investment flows in OTC markets have exploded, reaching 23.7 billion dollars in 2024, reinforcing calls for stricter regulation. In light of this situation, the China Securities Regulatory Commission (CSRC) has intensified its efforts to stabilize financial markets while monitoring the rise of Bitcoin ETFs and the potential consequences for the global economy.
Shiba Inu Jumps 42% in a Week 🚀
Shiba Inu, one of the most popular memecoins, saw its value rise by 42% in just one week, increasing its market capitalization from 6 billion dollars to reach 20 billion. This remarkable performance places Shiba Inu at the 14th position among the most important cryptocurrencies. This surge echoes a general resurgence of interest in memecoins, with notable increases for cryptocurrencies such as PEPE, FLOKI, and MOG.
The reasons for this spectacular jump remain unclear, although some traders speculate that the appointment of the new Japanese Prime Minister, Shigeru Ishiba, may have played a role. Specialized trading platforms have also recorded a renewed activity, with trading volumes doubling in a few days. However, the inherent volatility of memecoins remains a major risk, as these increases can be followed by equally rapid corrections.
FTX Customers Will Be Reimbursed Only at 10 to 25% 😟
FTX creditors face a major disappointment: after two years of waiting, they learn that they will recover only 10 to 25% of their lost funds. While many hoped for a full refund, the announced redistribution turns out to be much lower than expected. Another source of frustration is FTX's decision to allocate 230 million dollars from government seizures to shareholders, when these funds should normally have reverted to creditors.
This situation has sparked strong reactions among investors, with some feeling betrayed by how the repayment terms were changed after the plan vote. Meanwhile, the FTT crypto, which lost over 90% of its value after the FTX collapse, saw an inexplicable jump of 60% in 24 hours, highlighting the speculation still present in the ecosystem.
Crypto of the Day: Fantom (FTM)
Fantom is a blockchain that stands out for its DAG (Directed Acyclic Graph) technology which improves speed and scalability compared to traditional blockchains. It promises near-instant transactions with very low fees, positioning itself as a fast and efficient alternative for decentralized applications (DeFi, NFT, etc.). Fantom also innovates with its unique consensus mechanism called Lachesis, which ensures faster and more secure transaction processing without the need for continuous validation by the entire network.
The native crypto of Fantom, FTM, is primarily used to secure the network through staking, pay transaction fees, and participate in the project's governance. It was initially distributed via an ICO (Initial Coin Offering). FTM holders benefit from yields in the form of rewards when they participate in staking. FTM can also be used in various decentralized applications built on the Fantom blockchain, as well as for making payments.
Recent Performances
Current Price: 0.67 € (approximately 0.7478 USD)
24h Change: +8.46%
Market Capitalization: 2.096 billion €
Rank on CoinMarketCap: #46
Brutal Dive: The Crypto Market Loses 10 Billion Dollars in a Few Hours! 📉
The crypto market has undergone another shock with a drop of 10 billion dollars in just a few hours, dragging Bitcoin and altcoins into a downward spiral. The total market capitalization fell below 2.20 trillion dollars, and massive sell-offs exacerbated this pressure. The SUI token was particularly affected, recording a drop of 7%, while Bitcoin fell by 3.3% to trade at 63,500 dollars. Despite this situation, some analysts, like Michaël van de Poppe, believe these lows present buying opportunities ahead of a potential next historical peak.
The trading volume of Bitcoin increased by 2%, hinting at possible further losses. Investors are closely monitoring critical support levels, particularly between 60.5 and 61.3K dollars, which could trigger a recovery. The situation remains fragile, with significant thresholds to watch as traders assess whether this decline is only a temporary phase or the beginning of a more marked trend.
🔗 Read the full analysis here.