From crypto shorts squeezing to SEC greenlighting the FTX relaunch, here is a 2-minute breakdown of everything important happened in crypto today.
TGIF! CoinMarketCap is here to keep you updated on today’s top crypto stories!
First, a quick rundown of top news we’re gonna cover:
- BlackRock files for Ethereum ETF, boosting ETH prices
- ETF news sparks $200M ETH short squeeze
- SEC greenlights the FTX relaunch under new management
- Major crypto firm grilled by SEC over a suspected billion-dollar Terra deal
- Celsius bankruptcy plan approved, creditors may recover some funds
- Gaming giant partners with blockchain firm for mainstream Web3 gaming
Let’s dive in!
BlackRock's ETH ETF Plan Confirmed
In a new submission, BlackRock’s plan to launch an Ethereum ETF via a Nasdaq listing was disclosed. This huge development came out of the blue, with no prior indication from the asset manager giant.
It was a Twitter (now X) user who first uncovered the news, spotting that BlackRock's Ethereum Trust got registered as a new entity in Delaware yesterday. This stealth registration revealed BlackRock's Ethereum ambitions before its Nasdaq filing went public.
Traders were caught off guard, reacting rapidly to push Ethereum prices up. BlackRock making a move into Ether suggests Wall Street sees long-term value beyond just Bitcoin.
With competition lining up for SEC approval of the first ETH ETF, this filing cements BlackRock's intent to lead the charge. Read the full story!
Millions Liquidated in Short Squeeze
News about a BlackRock Ethereum ETF prompted a frenzy in crypto markets. Prices suddenly pumped, squeezing over $200 million in shorts.
Traders betting against the market were absolutely demolished.
The carnage highlighted the immense risks of shorting an asset that the market is favoring. With so much leverage in play, prices can swing violently on big news and trigger cascading liquidations.
The lesson is clear - don't bet heavily against crypto. News can ignite a short-squeeze inferno, burning bearish traders in the process. The ETF news was rocket fuel on an already blazing market. But how many got liquidated in ETH? Read the full story!
And that brings us to our Word of the Day!
It’s ‘Short Squeeze’!
So what exactly is a short squeeze?
Let me break it down real quick.
A short trade is when you bet an asset's price will drop. But if the price suddenly pumps instead, short sellers gotta buy back their positions fast before they lose their shirts.
All this panic buying creates more upward pressure on the price. Next thing you know, a response loop of liquidations pushes the price higher and higher.
So news of the BlackRock Ethereum ETF triggered a massive short squeeze in crypto. Traders shorting Bitcoin and Ethereum got crushed by the rapid price pumps.
The moral of the story - shorting is super risky in a volatile market like crypto. You can get wiped out really fast if prices run away from you. Not for the weak stomached! Some more details on how it works!
Now back to our daily stories!
SEC Greenlights FTX Relaunch
The head of the SEC says he's open to scandal-ridden FTX rising from the ashes under new leadership. But only if they keep their nose clean! Talk about an extreme makeover opportunity.
The new FTX has big shoes to fill after the last disaster. They'll need a spotless track record and a wholesome moral compass if they want a chance. Of course, rebuilding public trust after such an epic collapse will be an uphill battle.
But the SEC chief seems willing to give them a shot if they can prove themselves reformed. Read the full story here!
Crypto Firm's Terra Dealings
A major crypto trading firm just got grilled by the SEC over its suspected billion-dollar deal with the now-defunct Terra project.
When asked about it, the CEO pleaded the Fifth! That's not shady at all, right?
The firm allegedly scored LUNA tokens on the cheap to prop up the failed UST stablecoin. If true, that's quite the fast one they pulled on investors.
The SEC seems to think something smells fishy. But with the CEO staying silent, it may take some serious investigating to unravel this messy relationship.
Even after more than a year of meltdown, the Terra telenovela continues! More details on the firm in question!
Celsius Bankruptcy Plan Approved
Failed crypto lender Celsius' bankruptcy plan finally got the green light from a judge this week. Some creditors may now get their frozen funds back, along with equity in the reborn Celsius. Of course, the company's criminal founder is still facing charges. That could make for some awkward shareholder meetings!
The mess left behind by Celsius' crash will take a long time to clean up. With legal battles still looming, plus a pending fraud trial, this is far from over. But at least creditors now have a path to recover losses from the wreckage. Still, the road ahead for all involved looks rocky as Celsius tries to rise from the ashes. Find out how the firm plans to reimburse its creditors and how much will they receive!
Gaming Giant Goes Web3
A huge game publisher is joining forces with a blockchain firm to bring "Web3 gaming" mainstream. We've seen others dip their toes in crypto gaming, but this partnership aims to make blockchain elements seamless for players.
Teamwork makes the dream work, right?
They talk big about introducing "digital ownership" to gamers through this collaboration. But details remain mysterious so far. I bet you must have played a game or two of this publisher! Read more!
That wraps up the key headlines today. Stay tuned for more crypto insights!
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