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The Unfolding Financial Saga of FTX Exchange
Shiba Inu price reaction In a startling turn of events, as the financially beleaguered FTX exchange is actively liquidating its remaining assets to convert them into fiat and settle its substantial debts. Lookonchain recently reported that FTX, alongside trading giant Alameda Research, a major contributor to the exchange’s financial turmoil, has initiated the transfer of a significant volume of diverse cryptocurrencies including Shiba Inu.
This is another action to raise enough fiat money to repay the debt to the FTX creditors, with the debt constituting billions of U.S. dollars. FTX became insolvent in early November last year when its co-founder and chief executive, young and promising crypto billionaire Sam Bankman-Fried started using customers’ funds in order to save his sinking crypto trading firm Alameda.
Asset Exodus: Nearly 80 Billion Shiba Inu and More in the Move
In a recent revelation, blockchain investigator @lookonchain disclosed that FTX has transferred close to 80 billion Shiba Inu (SHIBUSD) along with sizable amounts of Ethereum (ETHUSD) and various other cryptocurrencies. This marks a substantial step in the ongoing process of converting crypto holdings into fiat, a crucial move in the effort to repay FTX’s creditors.
Court Approval: FTX Cleared to Sell $744 Million in Grayscale Digital Assets
Bloomberg has reported that the court has granted FTX permission to commence the sale of its stakes in Grayscale’s digital assets, valued at a staggering $744 million as of November. This court-approved move serves as another significant effort to generate sufficient fiat funds to address the substantial debt burdening FTX, running into billions of U.S. dollars.
Cryptocurrency Fire Sale: Preventing Market Disruption
To prevent market upheaval, FTX is strategically selling off massive chunks of its crypto-based assets. The recent transfer included a notable 77.77 billion SHIB and 1,643 ETH, with values reaching $652,000 and $3.43 million, respectively. Additional millions in IMX, GMT, UNI, BAL, LOOKS, and less than a million WOO were also part of this sizable crypto asset liquidation.
Future of Shiba Inu Price: Navigating the Aftermath
Amidst this financial turmoil, the Shiba Inu (SHIB) price has experienced a modest uptick over the past 24 hours. Despite FTX’s sell-off news, the SHIB market has demonstrated resilience, with a near 3% increase over the last two days and a 0.24% rise in the past 24 hours. Notably, a double bottom pattern on the Monthly chart timeline suggests a promising future for SHIB buyers, maintaining a clear higher low market structure.
Analyzing Shiba Inu’s Potential Surge: A Silver Lining Amidst Chaos
Despite the FTX crisis, SHIB buyers seem poised for an upward movement, given the double-bottom pattern observed. With a steadfast higher low market structure in place, there’s optimism for SHIB to reach the price range of 0.00001172 from its current position at 0.00000839. This signals a potential doubling of the recent increase, showcasing resilience in the face of FTX’s tumultuous financial situation.
Conclusion: Navigating the Volatility and Seizing Opportunities
As of now, the administrators of FTX that took over from SBF, whohas been arrested and sentenced for defrauding investors, have managed to recover approximately $7 billion worth of assets, which includes $3.4 billion in cryptocurrencies.
As FTX grapples with financial challenges, the cryptocurrency market experiences ripples of uncertainty. However, amid the chaos, SHIB holders find themselves at a pivotal juncture. The ongoing asset liquidation, though tumultuous, unveils potential opportunities for those navigating the crypto landscape. Whether FTX’s sell-off will cast a long shadow or present a chance for SHIB to flourish remains uncertain, but strategic investors are keenly watching the developments unfold. The saga continues, and the crypto community braces for the next chapter in this unfolding financial narrative.