The leading cryptocurrency fell below $25,000 on Monday, marking its first break of this support level since mid-June.
The leading cryptocurrency fell below $25,000 on Monday, marking its first break of this level.
The recent crash in the cryptocurrency market hits both to Bitcoin (BTC) as to Ethereum (ETH). BTC experiences a slight drop and stands at $25,800, after facing a lot of volatility. Meanwhile, ETH lost close to 2% in the last 24 hours and is trading below 1,600 Dollars. Overall, the market will fall market capitalization by almost 1% in the last day.
The leading cryptocurrency fell below $25,000 on Monday, marking its first break of this support level since mid-June. Furthermore, numerous “altcoins” as Ripple (XRP), Dogecoin (DOGE), Cardano (ADA) and especially Solarium (SOL) have experienced significant reductions in value, with Solana falling up to 8% this Monday.
Cryptos: The cause of this? FTX.
The already shaky cryptocurrency platform, previously led by Sam Bankman-Friedrevealed yesterday its considerable cryptocurrency holdings, which amount to $3.4 billion, including payments to executives such as SBF or Gary Wang for a total of US$2,200 million. Notable holdings include 1,162 million SOL tokens, 560 million BTC, $192 million in ETHas well as more than 100 million in XRP and Tether (USDT) along with other tokens lower capitalization.
The problem is that on Wednesday, September 13, Delaware Bankruptcy Court will make a decision on approving the liquidation of these assets. According to the plan proposed by the team of John J. Ray III, the company’s new CEO in charge of overseeing the restructuring process, FTX could sell up to $100 million worth of tokens per weekan amount that could increase to 200 million dollars. This could generate considerable selling pressure in the market.
Matrixport experts warn that “altcoins” could suffer for the rest of the year if this sale goes through. In particular, ETH and SUN They would be the most affected cryptocurrencies due to FTX’s high exposure to them. Specifically, Solana would be the most affectedwith strategists pointing to a “worrying” drop after the news, which could lead to additional declines to $15 and $10.
“Technically, the breaking of the $1,650 makes us extremely cautious about ETH here, and we could even foresee a scenario where prices fall materially lower by the end of the year. A decline below $1,500 could give rise to the idea that ETH could drop to $1,000,” these experts warn.
One analyst highlights that weekly trading volumes on centralized exchanges are at their lowest point since the end of 2020, with a cumulative weekly volume of $9 billion. The ratio of spot to futures volume has increased slightly in recent weeks, reaching the same level observed in April of this year. Low activity in futures tends to correlate with lower volatility.
“When analyzing the supply of Bitcoin, the proportion of long-term holders exceeds 75% of the total supply. The long-term holder refers to the part of the BTC supply that has not changed hands for more than 155 days Currently, 75.66% of the total supply, equivalent to 14.74 million BTC, is in the hands of long-term incumbents. Only 2.50 million BTC are held by short-term holdersthe lowest figure since 2011,” he explains.
Source: Ambito
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