KEYTAKEAWAYS
- Bitcoin volatility near lowest level in years
- FTX compensation plan officially launched
- Argentina’s president Milei faces fraud allegations over Libra token
TABLE OF CONTENTS
CONTENT
BITCOIN VOLATILITY NEAR LOWEST LEVEL IN YEARS
Since late November last year, Bitcoin’s trading price has remained between $91,000 and $109,000, showing very little fluctuation. In other words, Bitcoin’s volatility has dropped significantly. According to data from Glassnode, the two-week actual volatility (a measure of how much an asset has fluctuated over the past two weeks, annualized) has dropped to 32%, one of its lowest levels in recent years.
(Source: Coinglass)
Additionally, the implied one-month volatility (the market’s expectation of volatility over the next four weeks) has fallen below 50% annualized, also one of the lowest levels in years.
Analysis:
Bitcoin’s volatility has greatly narrowed, suggesting that the market is in a consolidation phase and investors are waiting for new signals. Although the drop in volatility might indicate a calmer market, it also suggests that Bitcoin could experience a significant move soon, whether a breakout or a correction.
This could bring back market activity. In this environment, investors should carefully monitor macroeconomic changes and technical developments in the crypto market to catch potential opportunities.
FTX COMPENSATION PLAN OFFICIALLY LAUNCHED
FTX has announced that starting at 10:00 AM Eastern Time on February 18, 2025, it will begin compensating creditors. This will be the first and final payout for creditors, and the compensation process is as follows:
1.Creditor Eligibility: The compensation is primarily for creditors with claims under $50,000.
2.Compensation Amount: Creditors will receive 100% of their claimed amount, up to a maximum of $50,000. Additionally, they will receive 9% annual interest from November 11, 2022, to the initial payout date as extra compensation.
3.After Payment Effects: Once payments are completed, the related debts will be fully discharged, marking the end of these specific liabilities.
Analysis:
The launch of FTX’s compensation plan is an important step for the company to restore its reputation and pay off its debts. The payout to smaller creditors will help ease anxiety in the market and among claimants.
While the scale of this plan is relatively small, it could provide support for the overall liquidation process and boost market confidence for future developments.
ARGENTINA’S PRESIDENT JAVIER MILEI FACES FRAUD ALLEGATIONS OVER LIBRA TOKEN SCANDAL
According to The Block, lawyers in Argentina have filed a lawsuit against President Javier Milei, accusing him of fraud due to his involvement in the LIBRA token project. The scandal erupted over the weekend after the token’s value dropped by 95% following Milei’s initial promotion.
Analysis:
As the President of Argentina, Milei’s words and actions have a significant impact on the market. If he promoted the LIBRA token publicly without sufficiently warning investors of the risks, it could be seen as misleading. If he or his team profited from this promotion, it could be considered a violation of financial market fairness principles.
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