Bitcoin fell in Asia on Monday morning, trading at around $26,500. Ether also declined but remained above its $1,600 support level. Most of the other top 10 non-stablecoin cryptocurrencies fell, with Toncoin the loser with a decline of over 4%. Bankrupt crypto exchange FTX received court approval last week to sell around $3.4 billion of its crypto holdings, which could increase selling pressure in the crypto market – particularly altcoins – for the rest of the year . U.S. stock futures rose slightly as investors await the Federal Reserve’s interest rate decision this week. Wall Street closed lower on Friday as mixed economic data in the US dampened investor appetite for risk.
Bitcoin and Ether decline; Selling pressure from FTX liquidation
According to CoinMarketCap data, Bitcoin fell 0.18% in the last 24 hours to $26,492.52 as of 7:30 a.m. in Hong Kong and was up 2.60% for the week. The world’s largest cryptocurrency reached $26,840.50 on Friday, its highest price since August 17.
Ether fell 0.87% to $1,619.94 and was flat for the week, up 0.18%.
Most of the other top 10 non-stablecoin cryptocurrencies posted losses in the last 24 hours. The only exception was Binance’s BNB token, which rose 0.66% to $216.23 and was up 1.80% for the week.
Despite the rise in BNB prices, the world’s largest crypto exchange is facing growing regulatory challenges. The company’s US subsidiary, Binance.US, has laid off a third of its staff and saw its chief executive, Brian Shroder, leave the company last week, citing “aggressive attempts by the US Securities and Exchange Commission (SEC) to to paralyze the crypto industry.” The exchange also lost its legal and risk managers last week, according to the Wall Street Journal.
The crypto market is under pressure from the liquidation of FTX, which plans to sell $3.4 billion worth of crypto assets by the end of 2023. The insolvent exchange’s three largest crypto holdings are Solana ($1.162 million) and Bitcoin ($560 million). ) and Ether ($192 million).
FTX announced that it will sell holdings gradually with a weekly cap of $100 million to avoid a negative impact on crypto prices. However, this limit could be expanded to $200 million upon approval by two committees representing FTX customers.
“Sales of this magnitude will have an impact,” blockchain research firm K33 wrote on Friday. “Altcoins with limited liquidity are particularly at risk, which is why it is crucial for altcoin traders to maintain a comprehensive overview of FTX holdings.”
The total crypto market cap fell by 0.73% to $1.05 trillion in the last 24 hours, while trading volume fell by 12.08% to $17.53 billion.