|Before you reading,
Don't miss coins like PEPE again! Click here to find new PEPEs!
- The general cryptocurrency market volatility has once again surged with the news of FTX preparing to sell its upcoming $3.4 billion worth of crypto assets.
- According to recent filings, a court hearing to review a proposal to initiate token sales as part of the repayment plan for lenders will be held on Wednesday.
- The overall crypto market seems apprehensive about the upcoming FTX lender liquidation. However, the market’s response appears to be somewhat unwarranted because FTX cannot liquidate its entire $3.4 billion holdings all at once.
The news that FTX exchange will sell its assets created intense selling pressure on Bitcoin
FTX Exchange’s FUD Intensifies
The general cryptocurrency market volatility has once again surged with the news of FTX preparing to sell its upcoming $3.4 billion worth of crypto assets. This development has placed significant selling pressure on FTX’s substantial holdings of assets such as Solana (SOL), Ethereum (ETH), and Bitcoin (BTC).
FTX executives have already reclaimed approximately $7 billion worth of assets, with $3.4 billion in cryptocurrencies. According to recent filings, a court hearing to review a proposal to initiate token sales as part of the repayment plan for lenders will be held on Wednesday.
|- New 1000x Potential Gems -
Click Here to Buy Safely!
A presentation mentions that FTX holds assets worth around $1.2 billion in SOL, $560 million in Bitcoin, and $192 million in Ethereum, among others.
FTX is reportedly appointing Mike Novogratz’s Galaxy Digital Holdings to manage liquidation operations for its massive token stack.
FUD Surrounding FTX Liquidation
The overall cryptocurrency market seems highly wary of the impending FTX lender liquidation. However, it appears that the market’s response may be somewhat exaggerated because FTX cannot liquidate or dump all of its $3.4 billion worth of crypto assets at once. According to an August application, the crypto exchange can liquidate cryptocurrencies from $50 million to $200 million.
Therefore, there is a major misconception that all of FTX’s crypto assets can be liquidated or dumped on the market. The reality is that all of these tokens will be released linearly on a monthly basis until January 2028.
Additionally, portions of the SOL assets are planned to become accessible on March 1, 2025, from the 7.5 million SOL acquired by Alameda Research from Solana Labs. Another batch of 61,853 SOL is planned to be released on May 17, 2025.
Another reason for the largely negative market sentiment is Bitcoin’s failure to hold critical support regions and showing significant weakness. As recently reported, Bitcoin formed a death cross on the technical chart, signifying the 50-day short-term moving average crossing below the 200-day short-term moving average, which may lead to more volatility in BTC prices in the near term.
September has historically shown a tendency for a bearish trend in the crypto market. Perhaps, a relief rally could start next month.