- The crypto market is bearish as FTX considers token sales to repay creditors.
- The exchange holds $7 billion in assets, including $1.2 billion in SOL, $560 million in Bitcoin, and $192 million in Ether.
On a challenging day for the crypto market on September 11, the past month has been equally grim, characterized by bearish sentiment and lackluster price performance across most cryptocurrencies.
The digital asset market experienced heightened volatility as traders closely monitored the potential cryptocurrency disposals by the defunct FTX exchange through its ongoing bankruptcy proceedings.
The exchange’s administrators have successfully recovered approximately $7 billion in assets, which includes a substantial $3.4 billion in cryptocurrencies. A pivotal court hearing scheduled for Wednesday aims to evaluate a proposal for initiating the sale of tokens to repay creditors, as per recent filings.
Notably, FTX’s inventory reveals holdings of nearly $1.2 billion in SOL, the native token of the Solana network, alongside $560 million in Bitcoin and $192 million in Ether.
According to Bloomberg, the exchange is actively pursuing the appointment of the asset management division of billionaire Michael Novogratz’s Galaxy Digital Holdings Ltd. to oversee this significant pool of tokens.
Reports suggest that the weekly limit for crypto disposals may vary from $50 million to potentially reaching $200 million, as outlined in an August filing.
The news surrounding the impending FTX creditor liquidation has led to a pronounced decline across the entire crypto market, with its total valuation currently standing at $1.03 trillion. Bitcoin, mirroring this trend, was trading at approximately $25,750 at the time of this report.
Adding to the market’s woes, September historically tends to be a challenging month for digital assets, further contributing to the prevailing bearish sentiment.
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