Bitcoin is caught in bearish territory amidst the anticipated liquidation of FTX's remaining crypto asset holdings.
that the potential FTX sell-off, when combined with other indicators that are already relatively bearish, could amplify downside pressure on bitcoin. He pointed to on-chain data that showed declining bitcoin trading volume for both spot and derivative activity.to having fallen below $10 billion for the first time since November 2020.
Another factor adding downside pressure is a possible divestment from crypto hedge funds,"who still seem to be a bit overextended based on our analyses," Dragosch said. He said a decrease in macro liquidity, largely attributed to the tightening of central bank monetary policies, was also adding a downside factor, with a continuous shrinkage in stablecoin market caps indicating there is less"dry powder" available for investing in crypto assets like bitcoin.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried. © 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As FTX News Causes Crypto Crash Fears, Investors Pivot To New Cryptocurrency Bitcoin BSCDefunct crypto exchange FTX is rumored to be set to begin liquidating assets on September 13 this week. With the exchange’s large holdings of big caps
Read more »
Bitcoin Drops Below $25K With Altcoins Bracing for Deeper Crash from FTX Crypto SaleAlternative cryptocurrencies could take a hit as FTX looks to shed its $3.4 billion stash of digital assets, crypto services provider Matrixport noted.
Read more »
The Bitcoin ETF Trade Is Increasingly About Bitcoin ItselfA court setback for the SEC has narrowed the discount on Grayscale Bitcoin Trust shares, making the price of the underlying asset more important.
Read more »
Solana price crash and FTX hearing: A complete rundownSolana price has crashed on several occasions in the past week as traders await a ruling on FTX exchange’s plan to convert its crypto assets to fiat.
Read more »
Solana falls 6% amid fears of FTX dump — but there's a catchCrypto investors have been spooked by an upcoming FTX token sale, which will see some $1.5 billion worth of Solana-affiliated tokens sold. However, the proposed plan for the sale of FTX’s assets makes a major dump seem unlikely.
Read more »
Bitcoin UTXOs echoing March 2020 'black swan' crash — New researchBitcoin is back in March 2020 mode, one BTC price on-chain metric shows.
Read more »