Crypto Daybook Americas: Effects of LIBRA Crisis on Cryptocurrency Market Amid FTX Payments

Your day-ahead look for Feb. 18, 2025

While Bitcoin (BTC) has seen little change recently, dipping by just 0.7%, the overall market mood remains bearish due to the LIBRA token issues, which have raised accusations of fraud and calls for the impeachment of Argentina’s President Javier Milei.

The CoinDesk 20 Index recorded a decline of about 2.3%. The direction of the market will likely depend on the outcomes of the U.S.-Russia negotiations currently taking place in Riyadh, which aim to resolve the conflict in Ukraine and rebuild diplomatic relations.

In addition to these concerns, FTX Digital Markets will begin repaying creditors today, with a total repayment plan amounting to around $16 billion. The payments will primarily be made in stablecoins, beginning with those owed under $50,000, who will receive approximately 119% of their claims plus 9% interest interest accrued since November 2022.

Opinions are mixed regarding the impact of these repayments, with some analysts suggesting they are insufficient to influence the market significantly, while others believe they may stimulate activity in the Solana ecosystem, given FTX’s historical investments there.

Ether is attracting attention, as recent inflows into U.S.-listed spot ETFs for this cryptocurrency have totaled $393 million this month, contrasted with a net outflow of $376 million for Bitcoin ETFs. These movements coincide with the upcoming testing of Ethereum’s Pectra upgrade, promising better scalability and security.

Investors generally remain cautious due to various global economic factors, leading to a significant level of pessimism. Recent surveys indicate that bearish sentiment among individual investors is at its highest point in two years.

However, this bearish trend may also signal a potential contrarian opportunity, particularly as institutional risk appetite diminishes amid ongoing trade tensions and uncertain monetary policy outcomes.

What to Watch

• Crypto:
  • FTX Digital Markets will start reimbursing creditors.
  • Upcoming launches and updates from key blockchain platforms.
• Macro:
  • Key speeches and events from the Federal Reserve.

Market Movements:

• Bitcoin (BTC) down 0.69% to $95,802.76.
• Ethereum (ETH) down 2.88% to $2,698.31.

Bitcoin Stats:

• BTC Dominance: 61.17 (-0.85%).
• Hashrate: 790 EH/s.