Embattled cryptocurrency exchange FTX has declared bankruptcy in the latest saga in the crypto world. The company saw a mass exodus of holders of its native coin, FTT, after news emerged that its finances, including that of its sister trading company Alameda Research, was on shaky ground. Alameda itself is being accused of using client funds from FTX to trade billions of dollars, while leveraging FTT as collateral. Almost half of Alameda’s capital was being held in FTT. Faced with a liquidity crunch, FTX has declared bankruptcy, with at least US$1 billion worth of client funds missing. The drama has wiped tens of billions from the cryptocurrency markets, with fears of spillover hitting the markets. BTC has dipped below $16,000 as of writing.
Beijing Announces Plans to Boost Property Sector
Beijing has announced a shift in policy focus, stepping away from its strict zero-covid policies to tackle another issue: its flailing property market. Indicating that Beijing might be moving towards shoring up its economic growth, China’s capital has announced a 16-point plan to rescue its property sector. This includes resolving the liquidity crisis among developers, to loosening down-payment requirements for homebuyers. Macro data has not been positive for China, with the country’s economy battered by continued Covid lockdowns and global inflation.
The US Midterms Well Under Way
The US midterm elections are well underway, with democrats retaining control of the US senate with a 50-49 split. Even if it comes to a die, the tie-breaking vote of vice-president Kamala Harris ensures that president Joe Biden will be able to continue influencing who sits in the federal courts and his administration. Meanwhile, the House of Representatives is leaning Republican, which will make it difficult for Biden to pass laws in the remaining 2 years of his term. A government divided will spur investors, who are taking government gridlock as positive news, especially with lowered spending on new policies.