Key Points | Mar. 20, 2024 | Biggest Single Day Loss in Crypto Since FTX
Economist Alex Kruger discussed the four reasons for the market downturn. That and more news in today’s Key Points/
Welcome to BitPinas Key Points: Easily digestible news in concise formats for easy reading. Let’s check the latest crypto news stories in the last 24 hours in the Philippines and abroad.
Table of Contents
Crypto Price Update
Market News
- Bitcoin’s recent price correction intensified on Tuesday, driven by waning interest in U.S.-listed spot exchange-traded funds (ETFs).
- This significant drop marks Bitcoin’s most substantial one-day loss, in percentage terms, since November 9, 2022, when it plummeted over 14%, when FTX announced its bankruptcy.
- This resulted in over $440 million in liquidations for long positions.
Feature Story: Crypto’s Biggest Single Day Loss Since FTX Bankruptcy
According to economist Alex Kruger, there are four reasons of the crash, in the order of importance:
- Too much leverage.
- The market decided that Ethereum ETF will not be happening soon.
- Negative BTC ETF inflows.
- Shitcoin mania in Solana.
The U.S. Federal Reserve will be releasing its rate decision and will update its economic projections. This event is closely watched not just by the crypto community but by the wider global financial markets as well.
Regulation
The likelihood of spot ether ETFs getting approved in May has decreased, notes Bloomberg ETF analyst James Seyffart.
- He is attributing this to the diminished prospects to U.S. regulators’ apparent disinterest in discussions with issuers about these products.
- Seyffart, in a recent X post, predicted that these applications would likely be rejected on May 23rd, a revision from his and colleague Eric Balchunas’s earlier 35% approval odds.
Sam Bankman-Fried’s legal team has issued a strong rebuttal against the Department of Justice’s (DOJ) recent sentencing proposal, labeling it as “disturbing” and a misrepresentation of the FTX founder’s character.
- In their letter, they accuse the DOJ of painting Bankman-Fried as a “depraved super-villain” with an exaggerated narrative focused on ‘loss’.
DeFi and NFT
- Earlier Monday, the Bitcoin Ordinals project NodeMonkes surpassed Bored Ape Yacht Club in market capitalization, reaching 7,300 BTC (about $490 million) as reported by Magic Eden, a cross-chain NFT marketplace. In contrast, Bored Ape Yacht Club’s market cap was 136,500 ETH, equivalent to approximately $483 million, according to NFT Price Floor’s analytics.
Web3 Gaming
- Immutable, Polygon Labs, and King River Capital have launched a $100 million Web3 gaming fund, the Inevitable Games Fund (IGF), targeting high-growth web gaming opportunities for professional and sophisticated investors. King River Capital leads the investment process, leveraging Polygon and Immutable’s GameFi expertise.
- At the Game Developers Conference, Saga, a layer-1 blockchain network, introduced its game publishing division, Saga Origins, and updated its mainnet launch timeline amid ongoing airdrop claims.
Noteworthy
- A Nigerian High Court has ordered Binance Holdings to give the Economic and Financial Crimes Commission (EFCC) detailed records of Nigerian traders on its platform. The order follows Justice Emeka Nwite’s Feb. 29 interim ruling on an ex parte motion by the EFCC, alleging criminal elements in Binance’s Nigerian operations.
Watch: gm! Crypto
It’s Wednesday and time for the premiere of gm! Crypto Podcast! In episode 02, Luis Buenaventura, John Sedano, and Jared Dillinger are discussing the crypto topics of the day:
1. What’s the deal with AI tokens and why are they pumping?
2. Discussion on web3 games
3. Bitcoin: is it too late to get in?
(This is a recorded livestream but some of the hosts will be available and will hang out in the comments section to answer your questions.)
Register and Click GOING here.
This article is published on BitPinas: Key Points | Mar. 20, 2024 | Biggest Single Day Loss in Crypto Since FTX
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