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Crypto Price Today: The cryptocurrency market experienced significant movements. The latest developments, including the approval of FTX’s liquidation plan, shifting focus by Worldcoin, and a new Ethereum proposal, played a crucial role in shaping the market landscape. Let’s analyze the price changes and market impact of these events.
On October 7, 2024, the US Bankruptcy Judge John Dorsey approved the plan for the failed crypto exchange FTX to wind down its operations. This decision was made in the District Court of Delaware, signaling a new chapter for FTX and its depositors.
The approved plan allows FTX to repay approximately $16 billion. This would cover 98% of the users, giving them nearly 119% of their account value. The repayment will include the principal amount plus interest for non-governmental creditors. The approval marks a critical milestone for FTX’s long road to recovery.
The court’s decision boosted market sentiment temporarily. The announcement brought a sense of relief among investors who were previously worried about losing their funds. However, the impact was short-lived. Key cryptocurrencies like Bitcoin and Ethereum showed a brief uptick but later faced price corrections due to broader market pressures.
FTX’s liquidation plan is a significant development, but it also highlights the vulnerabilities of crypto exchanges. The FTX collapse was likened to the “Lehman moment” for the crypto industry, creating a ripple effect that led to increased scrutiny and tighter regulations.
Bitcoin (BTC) started the day at $62,666, reflecting a slight dip of 1.18% over the last 24 hours. Over the past week, Bitcoin has dropped 1.46%, showcasing a lack of momentum. The FTX news provided a minor boost to Bitcoin, pushing it momentarily above the $63,000 mark. However, it faced resistance and corrected back below $63,000 as investor confidence weakened.
Bitcoin’s chart shows a descending triangle pattern, which typically signals a bearish trend. The key support level stands at $62,000, while the resistance level is at $63,500. If Bitcoin breaks below the support level, it could slide further, possibly testing the $60,000 mark. On the other hand, a break above $63,500 could signal a bullish reversal.
Ethereum (ETH) also struggled today. It started at $2,439.87, down 2.19% over the last 24 hours. The price fell by 7.17% over the past week. Ethereum’s price action was influenced by the broader market downturn, despite positive news on a new Ethereum Improvement Proposal (EIP-7781).
Ethereum developers introduced EIP-7781 to reduce block times by 33%, from 12 seconds to eight seconds. This proposal aims to increase Ethereum’s data capacity by 50%. The improved throughput could benefit decentralized exchanges like Uniswap v3, making them more efficient.
Despite the positive outlook, Ethereum’s price failed to capitalize on this development. The broader market downturn overshadowed the benefits of the proposal. However, if implemented successfully, EIP-7781 could reduce transaction fees and improve overall network efficiency.
Worldcoin, co-founded by OpenAI CEO Sam Altman, has decided to shift its focus away from Europe. Instead, it will concentrate on markets in Asia and Latin America. Worldcoin faced hurdles in Europe, including temporary suspensions in Spain and Portugal. The project is now looking at markets like Japan, Malaysia, and Argentina for better growth opportunities.
This shift indicates a strategic move by Worldcoin to target regions with more favorable regulations. The move may also signal the growing influence of Asian and Latin American markets in the crypto space.
Worldcoin’s announcement did not have a direct impact on major cryptocurrencies like Bitcoin and Ethereum. However, it created positive sentiment around altcoins focused on digital identity and emerging technologies. Smaller tokens related to Worldcoin’s ecosystem saw minor gains.
Polkadot (DOT): Polkadot started at $4.18, down 1.58% in the last 24 hours. Over the past week, it has declined by 7.61%. Polkadot is facing a tough resistance level at $4.30 and could fall further if it doesn’t break this level.
Solana (SOL): Solana’s price dipped by 2.93%, closing at $144.91. Over the last week, it dropped by 6.26%. Solana is consolidating around the $140 mark. A breakout above $150 could push it higher, while a drop below $140 may lead to further declines.
Ripple (XRP): Ripple dropped 1.11% in the last 24 hours, closing at $0.53. XRP has been one of the biggest losers, falling 14.60% in the past week. The price is struggling to maintain support at $0.50. If it breaks, XRP could see a sharp decline.
Shiba Inu (SHIB): Shiba Inu faced a significant drop of 4.39%, closing at $0.00001763. Despite a strong community, SHIB has been unable to maintain its value. Further declines could test its support at $0.000016.
The biggest gainer of the day was First Neiro On Ethereum (NEIRO), which surged by 19.46%, trading at $0.001711. Other notable gainers included Sui (SUI), which gained 9.77%, and Bitget Token (BGB), which rose by 7.92%.
On the losing side, FTX Token (FTT) saw a massive drop of 9.59%, trading at $2.42. The decline was expected due to the negative sentiment around FTX’s liquidation plan. Other losers included Bonk (BONK), which fell by 8.41%, and Popcat (SOL), which declined by 7.80%.
Today’s market activity was dominated by the fallout from FTX’s liquidation plan, Worldcoin’s regional shift, and Ethereum’s new proposal. While some positive developments emerged, the broader market sentiment remained bearish. Bitcoin and Ethereum continued their downtrend, facing strong resistance levels. Investors should keep a close eye on support and resistance levels to navigate the volatile market conditions.
