logo
  

CPI Relief Offsets The FTX Turbulence In Crypto Sphere

crypto dec17 10nov22 lt

The unprecedented chaos and carnage in the cryptocurrency market that emanated with the FTX fiasco abated following the release of CPI numbers from the U.S. The higher-than-expected fall in the inflation readings is expected to goad the Fed into toning down its aggressive monetary policy stance and slow or pause on the rate hikes, a measure seen as a positive for risk assets including cryptos.

Data released just a while ago showed CPI for the month of October falling to 7.7 percent, from 8.2 percent in September and expectations of 8.0 percent. Core inflation, which excludes the volatile food and energy prices and is the Fed's more preferred inflation gauge too fell to 6.3 percent. Markets had expected it to fall to 6.5 percent from 6.6 percent in the previous month.

Earlier, expectations of a quick end to the FTX fiasco faded as Binance, which had agreed to help the beleaguered cryptocurrency exchange backtracked from the offer. Binance tweeted that "As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com".

Meanwhile there are reports that Justin Sun, another crypto player is trying to step in and help FTX. The turbulence that ensued following the volte-face by Binance saw overall crypto market cap fall to as low as $787 billion. Market cap has since recovered to $882 billion, versus $878 billion a day earlier amidst the CPI-driven euphoria.

Bitcoin dropped to as low as $15,682.69, before recovering to its current level of $17,540, implying an overnight gain of 0.20 percent.

Ethereum is currently trading at $1,290.49, up 7.41 percent on an overnight basis. Ether had plunged to as low as $1,083.29 within the 24-hour span.

FTX Token (FTT) which slipped to the 73rd rank overall traded between $4.87 and $2.06 in the past 24 hours. It is currently trading at $3.37, down 30 percent on an overnight basis and 86 percent in the past week.

12th ranked Solana (SOL) dropped 10.8 percent overnight and 48 percent in the past week and is currently trading at $16.49.

3rd ranked Tether (USDT) the most valuable stablecoin briefly lost its peg to the US Dollar and traded between $0.9993 and $0.9815 in the past 24 hours. 5th ranked USD Coin (USDC) traded between $1.01 and $0.9992 whereas 6th ranked Binance USD (BUSD) traded between $1.01 and $0.9995 during the same period. USDT is currently trading at $0.9961 whereas USDC and BUSD are currently trading at $1.00.

Also, 57th ranked USDD (USDD) is currently trading at $0.9775 after losing its dollar peg amidst whale selloffs. The stablecoin ranged between $0.9881 and $0.9669 in the past 24 hours.

54th ranked Maker (MKR) gained 25 percent overnight. 10th ranked Polygon (MATIC) and 35th ranked Terra Classic (LUNC) also gained more than 11 percent in the past 24 hours.

The past 24 hours were eventful for the crypto industry with claims, counter claims, allegations and assurances. Reports that FTX used $4 billion including customer funds to keep Alameda afloat has shaken the crypto industry. Binance's follow up on its Proof of Reserves pledge by sharing a page with details of its wallet addresses and on-chain activity came in as a welcome development.

The trail of events comprising both FTX.com's feared balance sheet deficit and the trust deficit it created have vehemently renewed the calls for regulatory clarity for the nascent crypto industry.

For More Cryptocurrency News, visit rttnews.com

For comments and feedback contact: editorial@rttnews.com

Follow RTT