The Bankrupt FTX Exchange Plans $3.4 Billion Crypto Selloff
FTX, an bankrupt cryptocurrency exchange, is seeking court approval for a massive $3.4 billion crypto selloff scheduled for September 13. The announcement of this planned liquidation has already caused a downturn in the market, indicating potential bearish trends for Wednesday. FTX holds a significant amount of Solana and other cryptocurrencies in its portfolio.
Will FTX’s Selloff Impact the Crypto Market?
FTX, facing bankruptcy, has filed a motion outlining its strategy to liquidate its cryptocurrency assets to settle debts with creditors. The court hearing, set for September 13, has attracted attention from creditors and token holders. If approved, the liquidation could recover up to $3.4 billion. FTX plans to sell off $100-$200 million in digital assets per week, minimizing the immediate downward pressure on asset prices.
What’s Next for SOL Price?
Solana has been experiencing a correction within the price range of $19.1 to $17.3. The bears have taken advantage of rallies, selling off when the price approaches the 20-day EMA. Currently, SOL price trades at $17.6, indicating a 4% decline from yesterday. The bears may push the price below the support level of $17.1, potentially dropping it to $15.3. However, if the bulls manage to drive the price above the 20-day EMA, it could target the next resistance level near $20.
Hot Take: FTX’s Liquidation May Affect the Market
The planned liquidation of FTX’s crypto assets could have an impact on the market, as the announcement has already caused a downturn. While the phased approach to selling off assets may minimize immediate downward pressure, the weekly selloff in the millions could still have a bearish effect. The recovery of up to $3.4 billion through the liquidation could also have broader implications for the crypto market. Traders and investors will closely monitor the court hearing and the subsequent market reaction to determine the true impact of FTX’s selloff.
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