Crypto Daybook Americas: LIBRA Fallout Hits Markets, SOL in Focus as FTX Repayments Begin

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The crypto markets are navigating a turbulent start to the week, with geopolitical tensions, regulatory scrutiny, and major network upgrades shaping investor sentiment. While bitcoin remains range-bound near $96,000, broader market dynamics point to growing caution — driven by the fallout from Argentina’s LIBRA memecoin controversy and uncertainty surrounding FTX’s long-awaited creditor repayments.

Market Overview: Bearish Sentiment Takes Hold

Bitcoin dipped slightly by 0.7% over the past 24 hours, trading at $95,802.76 as of 4 p.m. ET on Monday. Despite holding above the critical $95K level, momentum has stalled. The CoinDesk 20 Index reflects broader weakness, down 2.23% to 3,161.95 — highlighting that altcoins are bearing the brunt of recent selling pressure.

Ether led the downturn, falling 2.88% to $2,698.31. However, this price action contrasts with strong institutional interest: U.S.-listed spot ether ETFs have seen a cumulative net inflow of **$393 million** this month. Meanwhile, spot bitcoin ETFs recorded a net outflow of $376 million — a striking shift in capital allocation that underscores changing market priorities.

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LIBRA Fallout: Political Turmoil Rattles Crypto Confidence

The collapse of Argentina’s LIBRA memecoin has sent shockwaves across global crypto markets. Promoted by President Javier Milei as part of an economic liberalization push, the token surged briefly before crashing — with early insiders reportedly pocketing $87 million. Accusations of fraud and calls for impeachment have followed, casting a shadow over government-backed digital asset initiatives.

Though Milei denies wrongdoing, the incident has fueled skepticism about political figures leveraging crypto for populist agendas. The backlash contributed to bearish sentiment across Solana-based tokens, particularly affecting projects perceived as speculative or community-driven without strong fundamentals.

Jupiter (JUP), Solana’s leading decentralized exchange, saw its token drop more than 12% amid allegations — later denied — of involvement in the LIBRA debacle. Despite announcing a new buyback program using 50% of protocol fees to accumulate USDC for future JUP repurchases, confidence remains fragile.

FTX Repayments Begin: $16 Billion Liquidity Event Unfolds

A pivotal moment arrived today as FTX Digital Markets, the Bahamas-based subsidiary of the collapsed exchange, began distributing repayments to creditors. The total payout program is expected to disburse approximately $16 billion, primarily through stablecoin transfers.

Initial distributions target claimants with balances under $50,000, who will receive roughly 119% of their adjudicated claim value, including 9% annual interest accrued since November 2022. This group represents over 80% of total creditors and marks a significant step toward restoring trust in crypto’s legal and financial infrastructure.

While some analysts argue the immediate market impact may be muted — calling the initial payments “too small to move the needle” — others highlight potential ripple effects. Given FTX’s historical investments in the Solana (SOL) ecosystem, there’s speculation that recovered funds could flow back into SOL and affiliated projects, reigniting developer activity and investor interest.

Ethereum Pectra Upgrade Looms: Testing Begins on Holesky

Ethereum is gearing up for one of its most anticipated upgrades in 2025: Pectra. Scheduled to enter testing on the Holesky testnet at epoch 115968 (February 24), Pectra aims to enhance scalability, security, and user experience.

Key features include:

These changes could significantly lower barriers to entry for retail users and streamline dApp interactions. With ether ETF inflows accelerating ahead of the upgrade, markets appear to be pricing in positive outcomes.

FAQ: Ethereum Pectra Upgrade

Q: What is the Pectra upgrade?
A: Pectra is a major Ethereum network upgrade focused on improving scalability, security, and usability — including support for paying gas in non-ETH tokens.

Q: When does Pectra go live?
A: Testing begins February 24 on the Holesky testnet. Mainnet deployment is expected in Q2 2025 pending successful trials.

Q: How might Pectra affect ETH price?
A: Historically, Ethereum upgrades have preceded price rallies due to increased developer activity and investor anticipation.

Macro Forces at Play: Rate Cuts Fade, Geopolitics Heat Up

Broader macro conditions remain a headwind. U.S. inflation surprises and rising trade war risks have diminished expectations for Federal Reserve rate cuts in 2025. This tightening backdrop pressured risk assets across equities and crypto.

Investor sentiment reflects this unease. A recent survey by the American Association of Individual Investors found bearishness at a two-year high, with 47.3% expecting stock declines over the next six months.

Meanwhile, high-level U.S.-Russia talks in Riyadh — focusing on Ukraine and bilateral relations — add another layer of uncertainty. Crypto markets often react strongly to geopolitical shifts, especially when they influence energy prices or global liquidity flows.

Key Dates Ahead: What to Watch This Week

Stay alert for these upcoming catalysts:

👉 Stay ahead with real-time insights on major crypto events and market-moving upgrades.

FAQ: FTX Repayment Process

Q: Who gets paid first in the FTX repayment plan?
A: Creditors with claims under $50,000 are prioritized, receiving ~119% of their claim value including interest.

Q: Are all creditors getting full repayment?
A: Most unsecured creditors are expected to receive between 119% and 132% of their claims depending on asset class and timing.

Q: Could FTX funds boost Solana?
A: Yes — given FTX’s past backing of SOL-based projects, reinvestment into the ecosystem is a plausible scenario.

On-Chain & Derivatives Insights

Derivatives data suggests caution prevails:

Tether (USDT) dominance appears to be forming a bullish double bottom after bouncing from March 2024 lows — typically a sign of stabilizing market conditions during corrections.

Final Thoughts: Contrarian Signals Emerge

Despite prevailing pessimism, contrarian indicators suggest potential upside ahead. Institutional capital is rotating into ether, major network upgrades are imminent, and FTX’s resolution marks progress in maturing crypto’s financial framework.

Retail bearishness often precedes rallies — and with bitcoin coiling within a tight $91K–$109K range since November, a breakout may be imminent.

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