The cryptocurrency market may be facing an imminent tremor, as one analytics firm recently suggested that a potential $3 billion sell-off is looming, rooted in potential liquidations of FTX's massive cryptocurrency stack to pay creditors. .
A recent court filing has recently revealed that the estate of the once-giant cryptocurrency exchange, which filed for bankruptcy in November after collapsing due to a bank run, has revealed assets totaling approximately $7 billion.
Of these assets, the exchange's holdings include $1.16 billion in Solana tokens ($SOL) and $560 million in Bitcoin ($BTC). The documents also detail billions in payments the company made to top executives, including founder Sam Bankman-Fried.
Filings reveal that the company has secured $1.5 billion in cash, on top of the $1.1 billion it had as of Nov. 11. It has $3.4 billion in cryptocurrencies, valued at the end of August. This is without taking into account its collection of over 1,300 lesser-known tokens, including MAPS and Serum (SRM).
FTX has sought approval from a New York court to liquidate its crypto assets so it can pay its creditors in cash, suggesting the market may be at risk of a $3 billion liquidation as it liquidates these. assets.
FTX's liquidation of its digital assets could significantly impact the cryptocurrency market, even amid a number of notable developments in the cryptocurrency space including Grayscale Bitcoin Trust (GBTC) recently gaining ground in its quest to become a spot Bitcoin exchange-traded fund (ETF). ) after a recent legal victory over the United States Securities and Exchange Commission (SEC).
Additionally, ARK Invest recently revealed plans to launch the inaugural Ethereum ETF, an initiative designed to amplify investments in Ethereum, the crypto world's second titan.
However, the market's apparent indifference to such important news draws attention, according to In the blocksince the price of Ethereum has not increased significantly with the ETF filing announcements, for example.
The firm's report notes that Grayscale Ethereum Trust (ETHE) is approaching its annual peak, at a time when the value of Ethereum fell more than 20% and remains within a narrow range, due to a substantial concentration of investors is breaking even at current price levels.
Ethereum is seeing significant support at the $1,600 mark as around 5.1 million ETH was purchased around this level. On the other hand, the highs of $1,600 have also seen an accumulation of 6.5 million ETH, making it a resistance point.
Contrary to expectations, the introduction of a possible Ethereum spot ETF was not enough to take the market out of this range. However, Visa's recent decision to start using Solana for settlements helped the cryptocurrency's price rise for a brief moment.
Featured image via unpack.
