In a major development in the cryptocurrency world, FTX, a major cryptocurrency exchange, has been given the green light by the bankruptcy court to divest $3.4 billion worth of crypto assets, including $1.2 billion worth of Solana (SOL). The purpose of this sale is to satisfy the exchange’s creditors and mark a significant turn of events in the crypto market. Here are the details…
FTX receives approval for crypto sales
FTX’s move comes on the heels of surprising inflation data from the United States, which revealed a higher-than-expected increase in consumer prices. The repercussions of this inflationary shock have led to concerns and debate about the future economic landscape.
Cryptocurrency analyst Michaël van de Poppe offered his views on the emerging situation. According to him, the liquidation of FTX’s assets may not create shock waves in the cryptocurrency market because most of the Solana tokens are staked and not ready for sale. It also suggests that Solana may have already gone through a “sell the rumor, buy the news” scenario as its price has witnessed a significant decline in recent weeks.
How did CPI data affect cryptocurrencies?
Van de Poppe also turned his attention to worrying inflation data, highlighting that the headline Consumer Price Index (CPI) rose 3.7% year-on-year in August, beating the consensus forecast of 3.6%. However, core CPI, which excludes food and energy prices, remained stable at 4.3%, in line with expectations.
The cryptocurrency analyst argued that these inflation numbers could potentially impact the Fed’s upcoming decision on interest rates, with a scheduled meeting just around the corner. He also pointed out that the yield on US Treasury bonds fell by 1% following the inflation data. Van de Poppe suggested that if the producer price index (PPI) report, which will be announced on Thursday, falls below expectations, it could further contribute to the decline in yields.
Critical levels have been determined for BTC
Shifting his focus to Bitcoin (BTC), Van de Poppe emphasized that the cryptocurrency is currently in a consolidation phase hovering around $26,100. It is currently undergoing a tight resistance test at the $26.3K level. The analyst emphasized that breaking above this resistance level is very important for Bitcoin’s upward trajectory, but it should maintain its support in the range of $ 25.3-25.6 thousand.
As the crypto market navigates these turbulent waters, FTX’s asset liquidation and the macroeconomic indicators highlighted by Van de Poppe provide critical reference points. Now all eyes are on how these developments will shape the future of cryptocurrencies in an environment of economic uncertainty.
