FTX may receive approval for selling assets in its next bankruptcy court hearing scheduled for Wednesday.
Lawant pointed out that part of FTX’s crypto stash is venture investment with lockups that prevent selling the assets, and that there would also be limitations to the asset sales, cushioning the market impact. “It is likely that the reaction toward the potential FTX sales was overrated and the market calms down from here,” Lawant said.market participants initially overreacted“The way crypto market makers and traders are front-running the FTX supply shows a complete misunderstanding of how a syndicated sale process works,”Dorman. “This isn’t an every-man-for-himself VC unlock. This is a court-ordered process that Galaxy will sell very slowly and opportunistically,” he added.
The market has rebounded since the initial scare, with BTC returning to $26,000, or roughly the level it was at prior to the Monday sell-off.While the market impact of any FTX crypto sales might be weaker than expected, there are other events looming that could add to the downward pressure on prices.
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