Crypto markets slumped Monday amid concern FTX will unload some of its $3.4 billion of crypto assets.
FTX may receive approval for selling assets in its next bankruptcy court hearing scheduled for Wednesday.
Lawant pointed out that part of FTX’s crypto stash is venture investment with lockups that prevent selling the assets, and that there would also be limitations to the asset sales, cushioning the market impact. “It is likely that the reaction toward the potential FTX sales was overrated and the market calms down from here,” Lawant said.market participants initially overreacted“The way crypto market makers and traders are front-running the FTX supply shows a complete misunderstanding of how a syndicated sale process works,”Dorman. “This isn’t an every-man-for-himself VC unlock. This is a court-ordered process that Galaxy will sell very slowly and opportunistically,” he added.
The market has rebounded since the initial scare, with BTC returning to $26,000, or roughly the level it was at prior to the Monday sell-off.While the market impact of any FTX crypto sales might be weaker than expected, there are other events looming that could add to the downward pressure on prices.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As FTX News Causes Crypto Crash Fears, Investors Pivot To New Cryptocurrency Bitcoin BSCDefunct crypto exchange FTX is rumored to be set to begin liquidating assets on September 13 this week. With the exchange’s large holdings of big caps
Read more »
Bitcoin Drops Below $25K With Altcoins Bracing for Deeper Crash from FTX Crypto SaleAlternative cryptocurrencies could take a hit as FTX looks to shed its $3.4 billion stash of digital assets, crypto services provider Matrixport noted.
Read more »
Bitcoin price falls as market ponders possible FTX crypto salesBitcoin is caught in bearish territory amidst the anticipated liquidation of FTX's remaining crypto asset holdings.
Read more »
Bitcoin Price-Volatility Correlation Turns Negative Again as Crypto Traders Eye FTX LiquidationsThe shift from positive correlation comes amid concerns the looming $3 billion FTX liquidations will crater the crypto market.
Read more »
Crypto exchange Bullish among bidders for bankrupt FTXCrypto exchange Bullish is among several parties making a bid for defunct trading platform FTX, according to sources.
Read more »
India, Nigeria, Thailand top Chainalysis’ 2023 Global Crypto Adoption IndexIndia tops the ranks for grassroots crypto adoption, according to Chainalysis’ 2023 crypto adoption index.
Read more »