FTX’s $3.4 Billion Crypto Sale Could Trigger Altcoin Crash, Warns Matrixport
Crypto services provider Matrixport is warning that an altcoin crash may be on the horizon due to a $3.4 billion sale of crypto holdings by bankrupt exchange FTX. FTX plans to sell up to $200 million worth of its crypto holdings each week to free up cash for creditors. Adding to the selling pressure, FTX creditors may also begin offloading $685 million in holdings of Solana (SOL). Matrixport predicts that this massive sell-off will create an overhang for altcoins for the remainder of the year. Venture capital funds focused on the crypto industry are also under immense pressure to return cash to investors, making them crucial sellers of altcoins.
ApeCoin Unlock and Bleak Outlook for SOL
Matrixport states that a $50 million unlock of ApeCoin (APE) is scheduled for this weekend. This unlock will allow insiders to sell 11% of outstanding tokens, potentially impacting the token’s price. Furthermore, the outlook for Solana (SOL) is looking bleak, with the token having fallen 11.4% in the past week. Matrixport identifies $15 and $10 as significant target levels for SOL. The report also highlights concerning signs for Bitcoin and Ethereum, with Ethereum’s price potentially dropping below $1,500 and Bitcoin experiencing a downward trend in bearish market sentiment.
Hot Take: Altcoin Crash Looms as FTX and VC Funds Sell Off Crypto Holdings
Crypto services provider Matrixport warns that an altcoin crash is imminent as bankrupt exchange FTX plans to sell $3.4 billion worth of crypto holdings. This sell-off, combined with selling pressure from FTX creditors and venture capital funds returning cash to investors, is expected to create an overhang for altcoins throughout the rest of the year. Additionally, an unlock of ApeCoin tokens and a bleak outlook for Solana contribute to the bearish sentiment. Bitcoin and Ethereum also face challenges, with Ethereum potentially dropping below $1,500 and Bitcoin experiencing a downward trend. Investors should remain cautious amidst these market conditions.
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