The cryptocurrency market is now in turmoil as it prepares for a significant event linked to FTX, one of the top crypto exchanges. Investors and traders are waiting for the outcome of FTX’s major sell-off, which could send shockwaves across the market. This critical decision is scheduled for September 13th, along with the release of the Consumer Price Index (CPI) statistics.
Whale Analysis, a well-known cryptocurrency research group, has expressed alarm about the upcoming FTX drop. “The altcoin market is experiencing a downturn as anticipation grows for FTX’s impending liquidation,” they wrote. Short positions have increased, particularly in currencies linked to #FTX’s imminent sell-off.”
FTX is currently seeking judicial clearance to liquidate $3.4 billion in cryptocurrency. This development has created uncertainty over cryptocurrencies like Solana (SOL) and FTT, prompting concerns about future market ramifications. In addition, as part of its effort to resolve financial issues, FTX is aggressively seeking legal alternatives to recoup cash granted to high-profile sports figures and LayerZero.
According to IntoTheBlock experts, the FTX liquidation event may impact Ethereum and Solana’s rising trend. “Despite positive developments like Visa’s involvement and the prospect of a spot ETH ETF,” they warn, “FTX’s impending $3 billion liquidation may wield considerable influence over market dynamics.”
FTX wants to formally request court authorization to liquidate its remaining Bitcoin holdings as part of its effort to overcome financial difficulties. These assets include about $685 million in SOL (currently locked), $529 million in FTT, $268 million in BTC, $90 million in ETH, $67 million in APT, $42 million in DOGE, 39 million in MATIC, 31 million in TONNE, and $29 million in XRP.
Solana’s uncertainty has caused its price to fall 8.1% in the last 24 hours, with SOL selling at about $17.99. In comparison, many other assets have remained relatively stable or witnessed slight decreases.
On August 24th, FTX requested that Mike Novogratz’s Galaxy Digital Capital Management handle the sale of recovered crypto assets. FTX may dump up to $100 million in tokens per week, with the ability to enhance this figure to $200 million for select tickets, according to the plan.
While the crypto market waits for the conclusion of FTX’s large liquidation, it remains to be seen how this event will affect the broader digital currency ecosystem in the coming days.
