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<a href="https://bitcoinworld.co.in/cryptocurrency-market-on-edge-as-ftx-faces-potential-3-billion-sell-off/" title="Cryptocurrency Market on Edge as FTX Faces Potential $3 Billion Sell-Off" rel="noopener noreferrer nofollow"></a> 
The cryptocurrency market is bracing itself for a potential seismic event, with analysts warning of an impending $3 billion sell-off that could shake the industry. The cause of this potential upheaval is the looming liquidation of FTX’s substantial cryptocurrency holdings, as the exchange seeks to repay creditors following its bankruptcy filing last November. 
Recent court filings have unveiled the extent of FTX’s assets, which now stand at approximately $7 billion. Among these holdings are $1.16 billion worth of Solana ($SOL) tokens and $560 million in Bitcoin ($BTC). The documents also shed light on the substantial payments made to senior executives, including founder Sam Bankman-Fried. 
FTX’s current assets include $1.5 billion in cash, in addition to the $1.1 billion it possessed in November. Moreover, the exchange holds $3.4 billion in cryptocurrencies, as of the end of August, without even factoring in its collection of over 1,300 lesser-known tokens, including MAPS and serum (SRM). 
To address its debt, FTX has petitioned a New York court for approval to liquidate its cryptocurrency assets, a move that could potentially trigger a $3 billion market sell-off. 
The repercussions of FTX’s asset liquidation could be profound, especially considering recent developments in the cryptocurrency space. The Grayscale Bitcoin Trust (GBTC) has made strides in its quest to become a spot Bitcoin exchange-traded fund (ETF) following a legal victory over the U.S. Securities and Exchange Commission (SEC). Additionally, ARK Invest announced plans to launch the first spot Ethereum ETF, aimed at amplifying investments in Ethereum, the second-largest cryptocurrency. 
Surprisingly, the market has shown limited reaction to these significant developments. Ethereum’s price, for instance, has failed to surge substantially in response to the ETF announcements, leaving some observers puzzled. 
The Grayscale Ethereum Trust (ETHE) is currently nearing its annual peak, despite Ethereum’s value experiencing a 20% drop and remaining within a tight trading range. This phenomenon is attributed to a substantial concentration of investors who are breaking even at current price levels. 
Ethereum has found strong support at the $1,600 mark, with approximately 5.1 million ETH being purchased at this level. Conversely, the high $1,600s have become a resistance point, as 6.5 million ETH have accumulated in this range. 
In an unexpected turn of events, Visa’s decision to utilize Solana for settlements briefly boosted the cryptocurrency’s price. Nevertheless, the broader cryptocurrency market remains on edge as it awaits the outcome of FTX’s asset liquidation and the potential ramifications it could bring. 
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The post <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in/cryptocurrency-market-on-edge-as-ftx-faces-potential-3-billion-sell-off/">Cryptocurrency Market on Edge as FTX Faces Potential $3 Billion Sell-Off</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Cryptocurrency Market on Edge as FTX Faces Potential $3 Billion Sell-Off

ItsBitcoinWorld

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