The crypto market is going through a rocky phase, with many people bracing for a big drop linked to FTX, a major crypto exchange. In recent hours, lots of people have placed bets that the coins FTX plans to sell will lose value. This crucial decision will happen on September 13th, the same day when the Consumer Price Index (CPI) data is released.
Whale Analysis wrote on X, “The altcoin market is going down as people are anticipating a huge upcoming dump from the FTX. A lot of shorts have been piled up in the past few hours, especially in those coins that #FTX will liquidate.”
FTX is waiting for court permission to sell off $3.4 billion in cryptocurrencies. This has got altcoins like Solana and FTT on edge, as they might be affected. FTX is also trying to get back money it paid to famous sports figures and LayerZero through legal means as part of its plan to fix its money problems.
Experts at IntoTheBlock say that the FTX liquidation could slow down the recent progress of Ethereum and Solana. “Despite positive news about Visa and a potential spot ETH ETF, FTX’s impending $3B liquidation could be dictating market movement.”
FTX will make a formal request to the courts seeking permission to liquidate their remaining cryptocurrency assets. These assets comprise a diverse range of cryptocurrencies, including approximately $685 million worth of SOL (currently locked), $529 million in FTT, $268 million in BTC, $90 million in ETH, $67 million in APT, $42 million in DOGE, $39 million in MATIC, $31 million in TON, and $29 million in XRP.
The uncertainty surrounding Solana has led to a 8.1% drop in its price over the last day, with SOL currently valued at around $17.99. This is quite different from many other assets, which have mostly remained stable or seen small declines.
FTX had earlier suggested on August 24th that Mike Novogratz’s Galaxy Digital Capital Management oversee the sale of recovered crypto assets. According to the plan, FTX can sell up to $100 million in tokens per week, with the possibility to increase it to $200 million for specific tokens.