Fed Chair’s Remarks Move Markets; FTX Opts Against Exchange Relaunch; Celsius Network’s Exit from Bankruptcy

Written by BTSE

February 1, 2024

As the working day gets started across Asia, we observe significant fluctuations across major digital currencies. Bitcoin, after a brief rally towards the $44,000 mark earlier this week, has since lost these gains, falling to below $42,000. Ethereum also experienced a retreat from its earlier gains, losing 3.3% of its value, now trading around $2,200. Solana, after capturing investor attention as it soared past $100 two days ago, lost 7% of its value and looks to head towards the $90 mark. These market movements come in the wake of remarks from US Federal Reserve Chair Jerome Powell and the ripple effect of FTX’s decision not to reopen  its crypto exchange. Let’s take a closer look at these movements:


Bitcoin and Major Cryptos Stumble Following Powell’s Remarks: The crypto market took a hit as Federal Reserve Chair Jerome Powell hinted at delaying interest rate cuts, evidently affecting investor sentiment. Bitcoin dipped to $42,300, while Ethereum and other major cryptocurrencies like ADA, DOT, and SOL also saw declines ranging from 3% to 4%. . This news comes amid a period of uncertainty and speculation about the future direction of monetary policy and its impact on risk assets, including cryptocurrencies. As the market keenly awaits further statements from the Federal Reserve, what might we expect, in response to these anticipated statements? 


FTX Opts Against Relaunching Exchange, Focuses on Repaying Customers: In a notable development, FTX, the cryptocurrency exchange that faced bankruptcy, has announced its decision not to restart its operations. Instead, it will focus solely on fully repaying its customers, a move that reflects the ongoing challenges in the crypto market. However, the repayment plan is based on asset values at the time of FTX’s bankruptcy, potentially complicating matters for claimants. Bitcoin’s price has shown some recovery since FTX’s collapse, but the exchange’s native token, FTT, experienced a 15% drop following this news. How successful will this repayment plan be, and will the outcome influence a crypto market that looks to be recovering from the after effects of FTX’s massive collapse?


Celsius Network’s Exit from Bankruptcy and $3 Billion Creditor Payout: As Celsius Network closes its bankruptcy case, it plans to distribute over $3 billion to its creditors. This distribution includes a stake in the new Ionic Digital Inc. mining operation. The movement marks a significant turnaround for the company, which has faced both legal challenges and a restructuring. With PayPal and Coinbase involved in the distribution process, what implications will this plan have for the future of crypto lending platforms?


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Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.

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