Crypto Market Faces Challenges Amid FTX Exchange Liquidation and September Slump
Crypto News – In what proved to be a tumultuous day for the cryptocurrency market on September 11, the preceding month has been equally disheartening. It has been marked by a pervasive pessimistic outlook and unimpressive price performance across the majority of digital currencies.
The digital asset landscape has been marred by heightened volatility as traders closely monitored the potential disposal of cryptocurrencies held by the now-defunct FTX exchange through its ongoing bankruptcy proceedings.
The administrators of the exchange have managed to successfully recover approximately $7 billion in assets, a substantial portion of which, about $3.4 billion, comprises cryptocurrencies. A pivotal court hearing scheduled for Wednesday seeks to evaluate a proposal to initiate the sale of these tokens in order to repay the creditors, as detailed in recent filings.
Notably, FTX’s inventory reveals substantial holdings of nearly $1.2 billion in SOL, the native token of the Solana network, along with $560 million in Bitcoin and $192 million in Ether.
According to Bloomberg, the exchange is actively pursuing the appointment of the asset management division of billionaire Michael Novogratz’s Galaxy Digital Holdings Ltd. to oversee this significant pool of tokens.
Reports indicate that the weekly limit for cryptocurrency disposals may range from $50 million to potentially as high as $200 million, as outlined in an August filing.
The news surrounding the impending FTX creditor liquidation has precipitated a notable downturn across the entire cryptocurrency market, with its total valuation currently resting at $1.03 trillion. Bitcoin, mirroring this trend, was trading at approximately $25,750 at the time of this report.
Adding to the market’s challenges, September has historically proven to be a trying month for digital assets, further contributing to the prevalent bearish sentiment.
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