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Crypto exchange FTX had on Wednesday received court approval to sell its $3.4 billion worth of crypto holdings including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH).This could be a bearish development for the crypto market as the sale of such a big portfolio could lead to further liquidation in the market.
Also Read: EU Parliament Approves DAC8 Crypto Tax Rule; Here’s What It Means
Solana (SOL) And Bitcoin (BTC) Price To Dip?
Hence, the development could likely be a bearish event for the top cryptocurrencies in the $3.4 billion worth of crypto holdings that includes Solana (SOL), Bitcoin (BTC), and Ethereum (ETH). Already, the FTX sale announcement led to a sharp drop in SOL price from $18.50 to $18 in a matter of minutes. Earlier, CoinGape reported that the FTX Derivatives Exchange has just received the green light from a Federal Judge to liquidate its crypto holdings.
Recent filings from the exchange showed that the portfolio also included assets in XRP, Wrapped Bitcoin (WBTC), and Aptos (APT). Increased liquidity of these assets could mean that traders could feel the Fear, Uncertainty, and Doubt (FUD) around price stability. However, Solana (SOL) price stood strong against the FUD related resistance after news came out that SOL holds the majority of the portfolio.
Majority Of FTX Solana Staked
According to popular crypto influencer Michaël van de Poppe, Solana, which corresponds to $1.2 billion of the assets of FTX, is mostly staked and cannot be sold. Hence, this could prevent from real time price impact on the cryptocurrency. Recently, Tron founder Justin Sun said he wishes to buy out the FTX tokens.
Contemplating an offer for FTX's holding tokens and assets to reduce their selling impact on the crypto community. Let's unite to bolster our crypto ecosystem!🙏
— H.E. Justin Sun 孙宇晨 (@justinsuntron) September 11, 2023
Also Read: XRP Attorney: Crypto In U.S. Is More Of A Court Battle Until 2025
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