Crypto market records correction on speculations of FTX liquidating its crypto holdings

Crypto market overview: During the weekend, the cryptocurrency market showed a sideways trend with a slight downward influence. According to market data, the worldwide cryptocurrency market capitalisation has declined by 0.9 per cent but still maintains a value surpassing $1 trillion.

The crypto fear and greed index continues to be in the fear zone with a score of 40/100 for the second consecutive day. 

Crypto Fear and Greed Index | Image credit: Alterantive.me

While talking to Republic, Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said, “Investor sentiments seem too low as FTX may soon be able to liquidate its crypto holdings worth $3.4 billion. If this happens, the market may witness a selling pressure which may dampen price action, especially for ETH and SOL.” 

Edul Patel, Co-Founder & CEO, Mudrex, said, “Bitcoin briefly breached $26,000 on Friday before encountering resistance amid bearish sentiments. This signifies a battle between the bulls and bears in the market. Currently, Bitcoin faces resistance at $26,500, and if the price retreats from its current position, it will find support at $25,300.” 

On the other hand, Sudeep Saxena, Co-Founder, CoinGabbar accredited the Texas power crisis for the decline in BTC prices. Saxena said, “ The BTC price is declining due to the Texas power crisis, which has stalled Bitcoin's recovery around $25,500 to $26,000 for three weeks. Texas, a key Bitcoin mining hub, is facing power shutdowns due to severe weather, jeopardising the network's hash rate. AntPool, a major contributor with 22.27 per cent of hash power, is also impacted.”

Shivam Thakral, CEO, BuyUcoin, said, “The next market mover is FTX’s liquidation of over $3 billion in crypto assets which is pending court approval. If the court gives the green signal for the liquidation of assets by FTX, it may impact the crypto market prices especially those of Solana and FTT.  The markets are expected to remain choppy due to uncertain macroeconomic factors.”

Prices listed were last checked at 10:30 am today according to Coinmarketcap.com

Crypto market in last 24 hours

BTC remained rangebound over the weekend. ETH was trading in red as its founder, Vitalik Buterin’s X account was hacked. Out of the major cryptos, Solana led the 24-hour losses due to the FTX news; the company had the most holdings in SOL. 

At the time of writing this news, Bitcoin is trading at $25,768.03 with a 0.15 per cent decline in the last 24 hours while Ethereum also registered a 0.7 per cent decline and currently trading at $1,610.97. XRP, Dogecoin, and Solana also registered a decline yesterday with Solana falling down by 0.71 per cent taking its weekly losses to more than 8 per cent. 

On the other hand, Tron, Cardano, Bitcoin Cash, and Stellar recorded some gains in the last 24 hours. 

Markets are now looking forward to near-term triggers, like the release of US inflation data this week, which will set the course for upcoming interest rate policy.