Bitcoin prices is barely unchanged since the beginning of the week, but prices were experiencing strong ups and downs. Prices added marginal 0.2% and are moving around $26,000 per coin.
FTX submitted a revised order to the bankruptcy court on September 13 outlining proposed guidelines for selling and transferring its substantial digital asset holdings. According to this filings assets sales of Bitcoin and Ethereum would be limited to $50 million weekly for the first couple of weeks, rising to $100 million weekly after that. FTX has $1.2 billion in Solana (SOL) or 35% of the overall holdings, Bitcoin - at $560 million or 16%, and Ethereum – at $190 million or 5.5%. The court session is scheduled for September 13. Bitcoin and altcoins prices deteriorated on the news of the swift liquidation of FTX assets. SOL prices went down by 5%, Bitcoin went down by 3.6%, and Etherum fell by 5.9% this Monday.
This news overshadowed positive expectation from a U.S. SEC’s Chairman Gary Gensler testimony. Although he didn’t spoke about spot Bitcoin ETF during his speech reiterating that cryptocurrencies should be considered as a security, he also fended off criticism from the Republican members of the Senate Banking Committee that he had pushed through new securities rules without giving sufficient time for public comment or analyses of economic impact. This is a clear support from policymakers towards crypto industry, although Gensler turned down all accusations.
Large crypto market makers like Abraxas Capital, Wintermute and Jump Trading deposited millions of BTC, ETH and ARB to crypto exchanges as crypto sell-off intensified on Monday. This move supported the market, and hold Bitcoin prices above $25,000-26,000 per coin. In case of a breakthrough of this important level Bitcoin prices may roll down by 20% to $19,000-21,000 per coin. Altcoins may suffer even worse.
Most importantly is that Bitcoin prices are consolidating above the crucial support level. Technically, prices may continue to dive pushed by the FTX assets sell-off. Any news about spot Bitcoin ETF approval may help, but it would not lead to a full-scale market recovery. So, another downside in the market is likely. The market is very fragile now. Market makers may help to support it at the current levels, but this could not last long. Only something really positive may hold Bitcoin prices from deteriorating towards $20,000 per coin.