Bitcoin Hits a 3-Month Low as FTX Seeks to Liquidate Its Crypto Holdings
Although Bitcoin is up 1.1% in the last 24 hours, it has dropped to levels it traded in June this year. According to data from CoinGecko, the coin is valued at $25,802 as of this writing. BTC isn’t the only top crypto asset on a downtrend.
Ethereum is currently changing hands for $1,595 for the first time since February. Other altcoins that haven’t escaped a sell-off include Apecoin, which is down to $1.16 from $6.09 in January, and SUI, which trades at $0.44 after declining from $1.17 hit in May. Moreover, Ripple has shed off all the gains it posted when the court declared the token a non-security on July 13.
Meanwhile, the latest price drop in Bitcoin is primarily fueled by the bankrupt crypto exchange FTX’s move to seek regulatory approval that would see the liquidation of over $3.3 billion in various cryptocurrencies like SOL, ETH, APT, and BTC. Per the court document filed on Monday, FTX is looking to cash out $1.15 billion worth of SOL, $570 million in BTC, $196.5 million in ETH and $136 million in APT.
Solana Founder Reacts to FTX’s Latest Move
While responding to the news, Solana founder Anatoly Yakovenko acknowledged that SOL’s price will be affected significantly if the court gives the green for FTX estate to sell its crypto holdings. However, he said his team will continue building the Solana ecosystem amid the drawbacks.
Last week, Yakovenko pleaded with FTX to reconsider its plans to dump its holdings, arguing that the move would cause the crypto market to dip deeper.
Not so long ago, BTC and other cryptocurrencies were soaring thanks to the multiple Bitcoin spot ETF applications filed by heavyweights in the traditional financial (TradFi) sector, such as asset managers BlackRock, WisdomTree, Invesco, and Valkyrie Investments.
Many crypto investors and traders were hopeful that the United States Securities and Exchange Commission (SEC) would approve the most awaited digital asset product for TradFi players within the shortest time possible. However, the commission has appeared to be reluctant to announce its decision regarding Bitcoin spot ETF, causing low liquidity in the cryptocurrency market.
All said, Bitcoin continues to trade above the level ($17,354) it began the year with. Still, it is far below the all-time high price of $69,067 achieved in November 2021.
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