Cryptocurrencies have started the week in the red, amidst growing negative sentiments. A brewing faceoff between the CEOs of Binance and FTX have triggered a massive selloff in the crypto market. At the time of writing, the total crypto market cap fell about 1.46% to $1.04 trillion and its trading volume was down by 0.47% to $70.04 billion.
Binance CEO Changpeng Zhou (CZ) announced that his company plans to liquidate all its substantial FTX token FTT holdings. This seemed to be a response to reports revealing that Alameda Research has significant exposure to unlocked FTT - Almeda research is owned by Sam Bankman-Fried (SBF), the CEO of FTX. Following the news, $FTT is down by more than 10%. Here’s all you need to know on this rift.
Elsewhere, equity markets finished last week on a moderate upswing as the tech-heavy Nasdaq, S&P 500 and Dow Jones Industrial Average (DJIA) closed Friday up more than a percentage point. This was in sync with a 4.7% gain that day for bitcoin.
What you need to know
This coming week, crypto traders will be focused on Tuesday's midterm elections in the U.S., which might have major implications for regulatory policy or economic decisions. Then on Thursday, the U.S. Labor Department is due to report the latest reading of the Consumer Price Index (CPI), expected to show that the main inflation rate staying at 8% or higher in October – still not too far from a four-decade high, and indicating just how much work the Federal Reserve has to do to cool off the economy and bring the figure back down.
We also expect the crypto market correlation with the NASDAQ Composite Index to continue this week. In the absence of new macro indicators, the markets will be eyeing comments from FOMC members for clues on what to expect in December.
Today, the Crypto Fear & Greed Index stands at 33/100, firmly within the “fear” bracket.