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Today in cryptocurrency, an economist predicts the overall crypto market will elevate if the US Federal Reserve continues to decrease rates, and the FTX Recovery Trust will disburse $1.6B to creditors in a payout this September. Meanwhile, the European Union is about to incorporate crypto platforms in its newest sanctions against Russia.
Bitcoin and altcoins poised for Fed ‘shock,’ market isn’t prepared: Economist
Participants in the crypto market might be underestimating the intensity with which the US Federal Reserve will pivot its policy stance, per an economist.
“Markets are undervaluing the probability of swift rate reductions in the near future from the Federal Reserve,” economist Timothy Peterson informed Cointelegraph on Friday.
“Historically, there has not been a gradual decrease in rates like what the Fed is currently anticipating,” Peterson remarked, indicating that he foresees “the surprise impact” to emerge and possibly unsettle the market.
“It will propel Bitcoin and altcoins upward significantly, and I anticipate this will occur within the next 3-9 months.”
FTX Recovery Trust to release $1.6B for creditors in September distribution
The FTX Recovery Trust, the organization managing the allocation of assets from the insolvent crypto exchange, revealed a third round of distributions to creditors, valued at approximately $1.6 billion.
In a Friday statement, the distribution is slated for Sept. 30, and creditors can expect to see the funds in their accounts within three business days following the payment date.
The third distribution comprises a 6% payout for Dotcom Customer claims, a 40% allocation for US Customer Entitlement Claims, and a 24% allocation for General Unsecured Claims and Digital Asset Loan Claims. Convenience claims will receive a 120% reimbursement as part of the September distribution.
FTX’s Recovery Trust commenced reimbursing creditors in February with a $1.2 billion distribution, subsequently following it with a $5 billion distribution in May. The trust possesses up to $16.5 billion in assets designated for its creditors and former clients.
EU targets cryptocurrency platforms in latest sanctions package against Russia
The European Union will encompass cryptocurrency platforms in its most recent financial sanctions aimed at Russia, marking the first instance of digital asset services being explicitly targeted.
The provisions, part of the bloc’s 19th sanctions package, forbid all cryptocurrency transactions for Russian citizens and limit dealings with international banks connected to Russia’s alternative payment systems, according to a declaration made by European Commission President Ursula von der Leyen published on Friday.
The package also aims to obstruct transactions with entities operating in Russian special economic zones.
“As evasive measures become increasingly advanced, our sanctions will evolve to stay ahead,” von der Leyen stated. “Thus, for the first time, our restrictive measures will target crypto platforms, and prohibit operations involving cryptocurrencies.”
She continued, “We are identifying international banks linked to Russian alternative payment service systems. Moreover, we are curbing transactions with entities in special economic zones.”
The sanctions are not finalized yet and need endorsement from all 27 EU member nations.
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