Crypto Fear Returns as FTX Moves to Dump More Tokens; Is Bitcoin Price at Risk?

Speculation has emerged that the crypto market could be at risk of another significant selling pressure amid the movement of millions of dollars by bankrupt FTX entities to liquid platforms for a potential liquidation.

Market tracker Spot On Chain recently disclosed via social media platform X that wallets associated with FTX and Alameda have moved eight tokens to centralized exchanges Coinbase, Binance, and FalconX. Per the disclosure, the moved tokens are worth $3.32 million, which occurred within the last 24 hours.

#FTX and #Alameda moved out $3.32M worth of 8 tokens ~5hrs ago:

• 1K $ETH ($2.3M) to #Coinbase
• 4.43M $ALPHA ($411K) to #Binance

and $609K in $POWR, $SNT, $OXT, $RLC, $NMR, $NEXO to #Coinbase & #FalconX.

Overall, they unloaded $15.1M in 21 assets to CEX in the past week 👇… pic.twitter.com/n3geZiqKjB

— Spot On Chain (@spotonchain) February 6, 2024

Notably, Ethereum (ETH) tokens accounted for the largest share of the assets the bankrupt entities have recently moved for liquidation. Specifically, it transferred 1,000 units of ETH, valued at $2.3 million, to Coinbase. Similarly, FTX sent 4.43 million ALPHA tokens worth $411,000 to Binance.

Other cryptocurrencies, collectively valued at $609,000, moved for potential sell-offs, including Powerledger (POWR), Status (SNT), Orchid (OXT), iExec (RLC), Numeraire (NMR), and Nexo (NEXO).

Furthermore, the market tracker highlighted that FTX entities had transferred 21 crypto assets worth over $15.1 million to centralized exchanges between January 31 and February 6. The cumulative monetary value of the unloaded ETH tokens so far stands at $7.24 million, followed closely by Toncoin at $1.03 million.

This recent update has sparked concerns, particularly following FTX’s recent sell-offs, in which analysts suggested that it pushed Bitcoin’s price into the $38K region last month. The sell-offs concerned FTX’s liquidation of billions of dollars in Grayscale trusts.

Moreover, FTX has moved to sell its stake in Anthropic, an AI company valued at $18 billion. Considering FTX’s 7.84% stake in the company, this reflects a $1.4 billion value for potential liquidation.

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