Analytics Firm IntoTheBlock Hints at $3 Billion Sell-Off in Crypto Market
Analytics firm IntoTheBlock has suggested that there may be a significant sell-off in the cryptocurrency market, potentially triggered by a bankrupt crypto firm. IntoTheBlock is a blockchain analytics platform and data provider that specializes in analyzing various cryptocurrencies and blockchain assets.
According to a report by IntoTheBlock, traders are starting to sell their holdings due to the impending liquidation of FTX, an insolvent crypto exchange. FTX’s digital asset portfolio, valued at around $3 billion, is at risk.
Lucas Outumuro from IntoTheBlock stated in a blog post, “A key factor behind the selling is likely to be FTX’s upcoming liquidation of reportedly $3B in crypto holdings. The market may have been spooked by their recent bridging activity.”
Why It Matters
Outumuro highlighted Ethereum (ETH/USD) and Solana (SOL/USD) as significant parts of FTX’s assets. However, the exact timeline for the liquidation remains unknown.
He also mentioned that other large sellers, such as the US government and Mt. Gox claims, might enter the crypto markets before the end of 2023.
FTX recently shared on Twitter that it is transferring its cryptocurrency holdings. The company is moving bridged tokens across different blockchain networks to their respective native blockchains. Specific details about the cryptocurrencies involved and the amount being transferred have not been disclosed yet.