Market update

Cointree Crypto Market Update - September 25th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$92,945, moving +4.36% at the time of writing. Meanwhile, Ethereum ends at AU$3,824 moving +11.32% week-on-week. On the Altcoin side, Solana pumps +13.47%, Cardano +15.62%, and XRP -0.41%.

🗞 What’s happening in the news?

🦘 Crypto Regulation Finally Strengthens in Australia — A Step Forward for the Industry

Australia is finally taking significant steps toward tightening crypto regulation, ensuring that cryptocurrency firms operate within a safer and more transparent environment.

In a major development, the Australian Securities and Investments Commission (ASIC) has announced that it will now require cryptocurrency exchanges to obtain financial services licenses, expanding the regulation beyond digital currency exchanges. This long-awaited move is being hailed as a positive change for Australian crypto users, exchanges, and the broader financial landscape.

ASIC Commissioner Alan Kirkland emphasised that this shift is crucial to maintaining market integrity and building consumer trust.

“ASIC believes that licensing and its subsequent protections will mitigate risk while bolstering consumer confidence and market integrity — two elements that are crucial in encouraging innovation in the financial system,” he stated.

With updated regulatory guidance expected soon, exchanges will need to meet stricter requirements, potentially reshaping the crypto landscape in Australia.

This new regulation signals a maturing market, which should comfort crypto users who have been wary of past incidents of fraud or market manipulation. As Australia prepares to roll out these changes, expect to see more stability, making this the perfect time for both seasoned investors and newcomers to feel confident in their engagement with crypto assets.

🇨🇳 Could China’s Stock Market Moves Spark a Crypto Boost?

China's recent economic stimulus package made waves in the global stock market but left the crypto market relatively untouched — for now.

The People's Bank of China’s (PBoC) actions to reduce interest rates and boost domestic lending have sparked optimism in traditional markets, with the Shanghai Composite Index soaring 4% this week. However, cryptocurrencies have remained in a holding pattern, with Bitcoin and Ether prices largely stagnant.

But does this mean crypto is immune to China's influence? Not necessarily. According to analysts at QCP Capital, recent monetary easing in both China and the U.S. could offer near-term support for cryptocurrencies, particularly Ether.

"Ether implied volatility is also trading 9% higher than Bitcoin, suggesting both upside sentiment and higher expected volatility," QCP noted.

So while crypto might be slow to respond, China’s broader economic policies might still have a ripple effect in the crypto world, especially as more investors look to diversify into digital assets.

👮 FTX Fallout: Caroline Ellison Sentenced to Two Years in Prison

In a major conclusion to one of the most significant fraud cases in crypto history, Caroline Ellison, the former CEO of Alameda Research, has been sentenced to two years in prison for her role in the FTX scandal. The court’s decision comes after Ellison provided key testimony that helped convict her former boyfriend, FTX founder Sam Bankman-Fried, who received a 25-year prison sentence earlier this year.

Ellison’s sentence also includes the forfeiture of approximately AU$17 billion (USD$11 billion), reflecting the massive scale of the fraud that brought down FTX and Alameda. Judge Lewis A.

Kaplan acknowledged Ellison’s cooperation with authorities, stating, "You were vulnerable, and you were exploited... you are genuinely remorseful."

However, the severity of the crime made leniency difficult, with the judge emphasising that this was one of the largest financial frauds in U.S. history.

Ellison’s testimony was instrumental in exposing the extent of Bankman-Fried’s fraudulent activities, including bribing foreign officials and misleading investors.

Despite her remorse and cooperation, Ellison’s sentence serves as a reminder of the immense responsibility that comes with managing financial assets, particularly in the crypto world, where billions can be lost in the blink of an eye.