DLC Bitcoin Slips Below $25K Amid FTX Crypto Sale Concerns -

Bitcoin Slips Below $25K Amid FTX Crypto Sale Concerns

In a tumultuous turn of events, cryptocurrency markets witnessed a sharp decline as concerns loomed over the potential selling pressure emanating from bankrupt cryptocurrency exchange FTX. The market downturn unfolded on Monday, as Bitcoin (BTC) slipped more than 2%, briefly plummeting below the psychologically significant $25,000 threshold, a level it hadn’t seen since mid-June. While it has since rebounded somewhat, trading around $25,140, it remains 2.6% lower over the past 24 hours. Ether (ETH), the second-largest cryptocurrency by market capitalization, faced a 3.2% decline, trading at $1,560.

Altcoins Bear the Brunt of FTX Worries

The real brunt of the market turmoil was borne by alternative cryptocurrencies, commonly referred to as altcoins. Among them, Solana’s SOL experienced a staggering 8% decline, while Toncoin’s TON and layer 2 Arbitrum’s ARB followed suit with similar losses. Ripple’s XRP wasn’t spared either, suffering a 5% loss.

This downward spiral coincided with market participants digesting the possibility of FTX gaining approval from the bankruptcy court to sell assets from its colossal $3.4 billion cryptocurrency holdings. Singapore-based digital asset services provider Matrixport voiced concerns, predicting an imminent “altcoin crash” as FTX potentially initiates token sales as early as this week.

SOL faced the most significant pressure, given that FTX holds a substantial $1.16 billion worth of this token, representing nearly 16% of its outstanding supply, as reported by CoinDesk earlier on Monday. The situation is further exacerbated by FTX’s holdings of $560 million in Bitcoin and hundreds of millions in lesser-known, illiquid micro-cap tokens, with digital asset investment firm Galaxy tapped to assist with the sales.

Ethereum and Solana Price Outlook

Matrixport’s market report suggests that FTX’s crypto sales could continue to weigh on altcoin prices for the remainder of the year. Solana (SOL) notably broke down from the $19 level with increased trading volume, prompting concerns and the possibility of further declines to support levels at $15 and, subsequently, $10.

Ethereum (ETH) also faces the prospect of further declines, with Matrixport suggesting that the protocol’s “revenue growth disappoints.” This assessment has led to caution, with the break below $1,650 raising concerns. The report even entertains the idea of ETH dropping to $1,000 if it falls below $1,500.

As cryptocurrency markets grapple with the uncertainties surrounding FTX’s asset sale and the potential impact on altcoins, traders and investors find themselves navigating a challenging landscape, marked by heightened volatility and shifting sentiment. The coming weeks will likely bring further clarity on how these developments will shape the crypto market’s trajectory.

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