Scimitar Capital’s Crypto Sell-Off Causes Market-Wide Drop, $2 Billion in Altcoins Liquidated

Scimitar Capital’s Crypto Sell-Off Causes Market-Wide Drop, $2 Billion in Altcoins Liquidated

Scimitar Capital, a prominent crypto-exclusive trading firm, has confirmed that it has liquidated all of its cryptocurrency holdings to return the capital to its LPs (Limited Partners). Although the exact amount of the liquidation is yet to be determined, it is suspected to be around $2 billion.

The cryptocurrency market experienced a significant downturn, with sharp drops observed across the board, particularly affecting altcoins. This sudden decline in altcoin prices on Saturday is rumored to be a consequence of Scimitar Capital’s decision to liquidate its crypto assets.

In a statement, Scimitar Capital explained, “Our fund has made the strategic decision to liquidate our crypto holdings and return the capital to our esteemed LPs. We believe this move will provide enhanced stability and opportunities.”

Over the past 24 hours, the price of Bitcoin has decreased by approximately 3%, while the overall global crypto market value has dropped by 5.74%, reaching $1.04 trillion. Among the top cryptocurrencies, Cardano (ADA) and Solana (SOL) experienced the most significant losses, each losing over 24% in the past 24 hours.

The situation indicates that the drop in altcoin prices may persist. ADA, SOL, and MATIC could potentially face lingering effects for at least three more weeks due to the impact of the delisting announcement from the Robinhood crypto exchange. Additionally, for other altcoins in the market, the Securities and Exchange Commission (SEC) poses a significant threat, as it remains uncertain which tokens will be targeted next.

Scimitar Capital, a cryptocurrency trading platform, recently announced its strategic decision to liquidate its crypto holdings. This move is widely speculated to be the primary cause behind the sudden and widespread drop in cryptocurrency prices. The company released a statement addressing the matter.

Meanwhile, a Twitter account named Thiccy claimed that Scimitar Capital sold $2 billion worth of altcoins on Friday night, triggering a sell-off across the market. However, the credibility of this crypto platform is yet to be fully verified amid the substantial impact it has generated.

“In the widely rumored crypto sell-off of Scimitar Capital, the fund liquidated $2 billion in altcoins on Friday night.”