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

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

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

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

While talking to Republic, Parth Chaturvedi, Investments Le, 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, 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 bulls and bears in market. Currently, Bitcoin faces resistance at $26,500, and if price retreats from its current position, it will find support at $25,300.” 

On or hand, Sudeep Saxena, Co-Founder, CoinGabbar accredited Texas power crisis for decline in BTC prices. Saxena said, “ BTC price is declining due to 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 wear, jeopardising network's hash rate. AntPool, a major contributor with 22.27 per cent of hash power, is also impacted.”

Shivam Thakral, CEO, BuyUcoin, said, “ next market mover is FTX’s liquidation of over $3 billion in crypto assets which is pending court approval. If court gives green signal for liquidation of assets by FTX, it may impact crypto market prices especially those of Solana and FTT.  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 weekend. ETH was tring in red as its founder, Vitalik Buterin’s X account was hacked. Out of major cryptos, Solana led 24-hour losses due to FTX news; company h most holdings in SOL. 

At time of writing this news, Bitcoin is tring at $25,768.03 with a 0.15 per cent decline in last 24 hours while Ereum also registered a 0.7 per cent decline and currently tring 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 or hand, Tron, Cardano, Bitcoin Cash, and Stellar recorded some gains in last 24 hours. 

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