Bitcoin Rockets Higher, ETH ETFs Log Record Inflows, and Dogecoin Continues to Pump on Musk’s Appointment
Welcome to our Weekly Market Update. Explore weekly crypto price movements, read a quick digest of notable market news, and dive into a crypto topic — this week we learn more about blockchain and derivatives trading.
Takeaways
Bitcoin Spikes Above $93K, Fueling High Liquidations Amid Extreme Volatility
Bitcoin (BTC) experienced a surge above $93,000 this week, hitting an all-time before pulling back $90,000 by Thursday afternoon. The upward price swing resulted in more than $700 million in futures liquidations, impacting both bullish and bearish traders. When bitcoin surpassed $90,000 earlier this week, it wiped $380 million from short positions and $290 million from long positions.
The trading volatility also hit altcoins like DOGE, BNB, and AVAX, which were lifted by excitement surrounding bitcoin. Futures liquidations impacted major tokens, with SOL and APT each recording over $25 million in losses as risk appetite returned to the market. Some analysts note that while Trump’s election win has driven bullish sentiment, there is correction risk as bitcoin approaches the $90,000 level, with predictions pointing to a slower climb in the last leg toward $100,000.
FTX Files $1.76 Billion Lawsuit Against Binance and CZ Over Alleged Fraudulent Transactions
FTX has initiated a lawsuit against Binance and its founder, Changpeng Zhao, seeking to recover $1.76 billion. The complaint claims the sum was fraudulently transferred during a 2021 share repurchase agreement between the two exchanges. According to the filing, Binance initially acquired a 20% stake in FTX in 2019 through a deal involving over one million BNB tokens. And in 2021, FTX agreed to repurchase this stake, paying Binance with $1.76 billion worth of tokens.
The lawsuit alleges that FTX’s sister company, Alameda Research, was already insolvent at the time of the repurchase and used customer funds to carry out the transaction. It also claims that Zhao issued “misleading” statements about FTX’s finances and claims it was the reason for the mass sell-off of tokens in November 2022. The event triggered a liquidity crisis at FTX and led to its eventual collapse.
This lawsuit is one of more than 20 recent claims filed by FTX against individuals and entities, including SkyBridge Capital’s Anthony Scaramucci and Deltec Bank chairman Jean Chalopin.
What is Blockchain and Financial Derivatives?
The blockchain is increasingly demonstrating its potential to transform traditional systems in a way that can improve operational efficiency, expand optionality, and reduce costs. Nowhere is this more apparent than in the financial services industry, with cryptocurrency markets and blockchain-enabled financial products gradually gaining traction over their conventional counterparts. As more on-chain synthetic assets continue to be developed, the range of derivatives being offered on blockchain platforms appears limitless.
Onward and Upward,
Team Gemini
Program Support Specialist at U.S. Department of State
1wPlease advise how are the 2024 U.S. election results impacting crypto currency investing? What are the benefits vs. risks of short term and long-term crypto investing? Also, what is the definition of "on-chain synthetic assets"?