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- FTX plans to liquidate $3.4 billion in its cryptocurrency holdings, which include SOL, ETH, and BTC.
- FTX aims to offload $200 million in crypto assets each week.
- ApeCoin may experience a potential effect on September 17, with 11% of its total tokens set to unlock.
The cryptocurrency market has once again witnessed a notable increase in volatility following the announcement of FTX’s forthcoming sale of its crypto assets, amounting to $3.4 billion. This decision has exerted considerable selling pressure on FTX’s primary holdings, such as Solana (SOL), Ethereum (ETH), and Bitcoin (BTC).
FTX administrators have successfully retrieved around $7 billion in assets, with $3.4 billion of this amount consisting of cryptocurrencies. Recent court filings indicate that a hearing scheduled for Wednesday will assess a proposal to commence token sales as part of the repayment strategy for creditors.
Altcoins at Risk
FTX plans to liquidate at least $3.4 billion in cryptocurrencies to enable the return of fiat currency to its users rather than tokens. This action is anticipated to have a lasting effect on the crypto market throughout the remainder of the year, as highlighted by Matrixport, a crypto services provider.
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Matrixport has noted that FTX intends to sell $200 million worth of crypto assets weekly. Importantly, FTX possesses a significant amount of Solana, valued at nearly $1.2 billion in SOL. Additionally, FTX’s crypto asset portfolio includes $560 million in Bitcoin, the leading cryptocurrency, and $192 million in Ether, the second-largest cryptocurrency.
FTX is not the only significant seller in the current crypto market landscape. Venture capital investors are also under considerable pressure to return funds to their investors, prompting them to become major sellers of altcoins. Markus Thielen, head of research, underscored the influence of these VC funds on market dynamics.
The upcoming unlock of ApeCoin (APE), another cryptocurrency held by VC investors, is set for September 17. This event will represent 11% of the total outstanding APE tokens, potentially further affecting prices following a 4.2% unlock on August 17, which led to a 24% price decline.
From a technical perspective, Bitcoin has formed a death cross, signaling heightened volatility. This phenomenon occurs when the 50-day short-term moving average crosses below the 200-day short-term moving average, which may lead to additional fluctuations in BTC’s price in the near future.
Ethereum has also encountered difficulties, reaching a five-month low on early September 12 and experiencing a 15% decline to $1,533.
BTC and ETH Price Status (Source: CoinMarketCap)
Despite these challenges, as of the time of writing, the crypto market is exhibiting signs of a modest recovery. Bitcoin’s price has increased by approximately 2% to $26,154, Ethereum (ETH) has risen by 1.4% to $1,609, and Solana (SOL) has gained over 4% to $18.34.
