Last night (11 Sep), Bitcoin’s price dropped by 2% below the $25,000 level for the first time since mid-June as the market was concerned of FTX selling its assets.
Bitcoin swung back to almost $26,000 in 12 hours after the drop. The alternate cryptocurrencies that FTX hold, Solana’s SOL also went down more by 10% and later recovered back around $18.
These drops occurred after the reports of the possibility in disposing assets of FTX’s $1.16 billion in SOL and $200 million Bahamas real estate court filing. The market feared FTX would unload more assets in Crypto as it wanted to start to liquidate a $3.4 billion of cryptocurrencies like BTC and ETH through its investment manager, Galaxy Digital (GLXY) last month.
FTX started collapsing in November 2022 due to the liquidity crisis of its own FTT token. The crypto media, CoinDesk published the article of its finding of the FTX affiliated trading firm, Alameda Research that owned by Sam Bankman-Fried or FTX’s CEO himself, has held a large amount of FTT. The competing exchange, Binance threatened to unload its own FTT causing the FTT crash, pulling out of FTX, liquidity crisis and forcing the stop trade.
Later, Binance entered a non-binding agreement to purchase FTX but dropped the acquisition, possibly finding something that prompted the regulator, SEC to investigate at a later date. The lack of rescue forces FTX to file for bankruptcy and lawsuits on its CEO. Its customer has been waiting for FTX to liquidate ever since.
