5 Biggest Crypto Market Movers – Blackrock’s $24B Holdings, Hamster Airdrop, Farcana in Focus

Crypto Market Analysis

On Sept 26, the global crypto market capitalization hit $2.19 trillion, having increased by $230 billion since the US Fed announced a 50bps interest rate cut on Sept 18.

With the likes of Bitcoin (BTC), Ethereum (ETH) trending at new monthly peak price, this analysis examines 5 major news events moving the crypto markets this week.

1. BlackRock’s Latest BTC and ETH Purchases Bring Total Crypto Holdings to $23.9 Billion

BlackRock, the world’s largest asset manager, has made headlines once again by increasing its exposure to digital assets, specifically Bitcoin (BTC) and Ethereum (ETH).

The firm added 529 BTC and 2,420 ETH to its holdings, bringing its total cryptocurrency reserves to 359,606 BTC, and 350,000 ETH, worth $23.9 billion.

This aggressive accumulation of digital assets comes amid growing institutional  interest in cryptocurrencies as long-term hedges as the US Fed swung dovish with a 50bps rate cut on Sept 18.

The latest inflows into BlackRock’s iShares Bitcoin Trust (IBIT) set a new record, with $99 million pouring in within 24 hours. These purchases signal a significant shift in institutional attitudes toward Bitcoin.

Despite concerns about traditional financial risks, BlackRock’s decision to expand its BTC and ETH portfolio demonstrates its belief that these digital assets can serve as viable alternatives to equities and bonds.

This increase in holdings also coincides with significant movements of Bitcoin from Mt. Gox, raising concerns about potential selling pressure on the market. Yet, BlackRock’s ongoing acquisitions suggest that institutional players are taking a longer-term view of cryptocurrency as a stable asset class.

BlackRock’s latest purchase further affirms the narrative that institutional investors are re-directing more capital towards crypto following the US Fed rate cut.

If the US Fed stays dovish in Q4, Blackrock’s recent move could attract more institutional investors into the crypto space, boosting both liquidity and market confidence in the coming weeks.

2. FTX Fraudster Caroline Ellison Gets 2-Year Sentence, To Forfeit $11 Billion

In a major legal development, former Alameda Research CEO Caroline Ellison was sentenced to two years in prison and ordered to forfeit $11 billion for her role in the collapse of FTX, the now-bankrupt cryptocurrency exchange.

Ellison, a key figure in the case against FTX founder Sam Bankman-Fried, cooperated extensively with federal prosecutors, providing crucial information that led to his conviction.

Ellison’s sentencing came after she struck a plea deal in December 2022, following FTX’s implosion in November. Alameda Research, FTX’s affiliated hedge fund, had misappropriated customer funds, resulting in one of the largest financial frauds in U.S. history.

While Ellison received a relatively lenient 2-year sentence in light of her cooperation, Judge Lewis Kaplan emphasized the need for her punishment to serve as a deterrent for future bad actors.

The $11 billion forfeiture represents one of the largest recoveries in financial fraud cases, underscoring the severity of the crimes committed.

In terms of market impact, this sentencing signals a stronger regulatory crackdown on fraudulent activities within the crypto space. It may also push exchanges and investors to adopt more stringent compliance measures, thereby fostering a safer environment for institutional and retail participants.

3. ByBit Bull Traders Drive Farcana (FAR) to Top 2 in Trading Volume

Following the US Federal Reserve’s 50bps interest rate cut on Sept 18, investor confidence in risk assets, particularly cryptocurrencies, has surged. With the market anticipating a dovish stance from the Fed, crypto traders have been quick to jump into promising newly-launched projects ahead of a potential Q4 bull cycle.

One of the standout performers in this landscape is Farcana (FAR), which broke trading volume records on ByBit on Sept 25 as traders swooped in.

Farcana is a bitcoin shooter game, combining elements of gaming with decentralized finance (DeFi) services to create an ecosystem that offers both entertainment and economic incentives.

On Wednesday Sept 25, Farcana’s native token FAR emerged among Top 2 most-traded assets on ByBit, after it announced a staking program, offering competitive rewards.

This staking program appears to have been the primary driver of the token’s surge in trading volume, propelling $FAR to the second spot in ByBit’s trading charts. Users can earn up to 60% in rewards, with varying APRs, depending on the staking duration.

The platform allows users to monitor their total rewards in real-time, with APRs that vary based on the length of their staking commitment. This flexible staking model has created an attractive proposition for both short-term traders looking to capitalize on quick gains and long-term holders seeking sustainable returns.

At the time of publication on Sept 26, the price of the FAR token had climbed to $0.0084, gaining more than 20% within 24 hours of the staking rewards announcement. With plans to expand its presence on more exchanges in the coming months, Farcana remains one to watch in the weeks ahead.

4. Hamster Kombat (HMSTR) Airdrop Allocates 60 Billion Tokens

Vice President Kamala Harris made her first public remarks on cryptocurrency during a speech at The Economic Club of Pittsburgh.

Addressing the importance of emerging technologies, Harris stated that her administration, if elected, would invest heavily in blockchain, artificial intelligence, and quantum computing, ensuring that the U.S. remains a global leader in innovation.

“We will invest in biomanufacturing, aerospace, remain dominant in AI and quantum computing, blockchain, and other emerging technologies,”

Democrats Presidential Candidate, US VP, Kamala Harris.

Harris also highlighted the necessity of expanding clean energy innovation and ensuring that the next generation of technological breakthroughs happens on American soil.

Although Harris’s mention of blockchain was brief, it marks a significant shift in the U.S. political landscape. The current administration under President Biden has adopted a relatively crypto-hostile stance, implementing regulatory crackdowns on several fronts.

Harris’s remarks signal that her administration may take a more favorable approach to digital assets, which could result in less regulatory friction for blockchain-based industries and cryptocurrencies.

Harris’s comments are particularly notable as pro-crypto lobbying efforts have intensified ahead of the 2024 election. Hundreds of millions of dollars have been funneled into political campaigns with the aim of securing a more crypto-friendly regulatory environment.

Her statement, though cautiously optimistic, could reassure investors and developers in the blockchain space that the U.S. will not fall behind global competitors like China in the race for technological dominance.

If followed through, these initiatives could create a more stable regulatory framework, encouraging institutional participation in digital assets and potentially driving the next wave of crypto adoption.