Bitcoin, Ethereum, Dogecoin Drop As Beleaguered FTX Looks To Offload Billions In Tokens: Analyst Foresees Extreme Ethereum Crash, Predicts ETH Dropping More Than 70%

Major cryptocurrencies saw a sharp decline on Sunday as traders grew concerned about the potential selling pressure arising from the bankruptcy of exchange FTX.

What Happened: FTX’s legal team is preparing for a hectic week ahead as they seek regulatory approval to liquidate a substantial $3.4 billion in crypto assets. The exchange aims to appoint Galaxy Digital, under the leadership of Mike Novogratz, as the investment manager responsible for overseeing the sale.

According to the proposed plan, FTX would have the opportunity to sell up to $100 million worth of tokens per week, with the potential to increase this limit to $200 million for individual tokens. January 2023 estimates placed FTX’s crypto holdings consisting of approximately $685 million in locked Solana tokens, $529 million in FTT tokens, $268 million in Bitcoin, $90 million in Ethereum, as well as various other assets such as Aptos ($67 million), Dogecoin ($42 million), Polygon ($39 million), XRP ($29 million), and stablecoins. Furthermore, an additional $1.2 billion was held in crypto on third-party exchanges.

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Blockchain data reveals that during Monday’s crypto market sell-off, notable firms Jump Trading, Wintermute, and Abraxas Capital deposited significant amounts of Bitcoin, Ether, and Arbitrum’s ARB token into various crypto exchanges. 

According to Arkham Intelligence, a blockchain analytics firm, asset manager Abraxas Capital made two transactions to Bitfinex, transferring a total of 14,130 ETH, which is estimated to be worth around $22.5 million. Additionally, Jump Trading, a major market maker, sent a substantial amount of nearly 236 BTC, totaling approximately $5.9 million, to Binance in a single transaction, as reported by Arkham.

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Currently, the global crypto market capitalization stands at $1.01 trillion, a 2.29% decrease in the last day.

Stocks opened the week on a positive note as investors took advantage of the recent dip in tech shares, leading to a rise in the market. The Nasdaq Composite surged by 1.14%, while the S&P 500 saw a gain of 0.67%. 

See More: Best Crypto Day Trading Strategies

Analyst Notes: Crypto trader Benjamin Cowen predicts a potential downward trend for Ethereum (ETH). He emphasizes the possibility of a future decline for Ethereum, suggesting the price could fall to the range of $400-$800. 

“There’s a good chance that [there will] be a lower low, and it might not be a much lower low, maybe it just goes down to just below $800. It could go lower. It could go to $600 or $500 or $400, but that is in the cards for Ethereum.”

Crypto Tony reiterates his prediction on Bitcoin: From $25,000 to $28,500 and then back to $20,000.

Pseudonymous analyst DonAlt noted a deterioration in vibes recently. This ongoing situation may lead to a rise in bearish sentiment among people.

“The more this grinds the more people will become bearish though so we’ve got at least that going for us. That coupled with altcoins nuking is starting to get me hopeful. Not enough yet, but I like it 10x better than in the last 10 weeks,” the analyst said.

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