Cryptocurrency exchange FTX has received bankruptcy court approval to sell $3.4 billion worth of crypto assets, $1.2 billion of which is in Solana (SOL), to pay its creditors.
The move comes after the latest inflation data from the US showed a higher-than-expected rise in consumer prices, raising concerns about the economic outlook.
Van de Poppe: “The Impact of FTX Liquidations on the Cryptocurrency Market is Minimal”
According to cryptocurrency analyst Michaël van de Poppe, the liquidation of FTX's assets may not have a significant impact on the crypto market because most of the Solana tokens are staked and cannot be sold. He also suggested that Solana may have already experienced a “sell the rumor, buy the news” scenario, as its price has dropped significantly in recent weeks.
Van de Poppe also commented on inflation data showing that headline CPI in August increased by 3.7% on an annual basis, exceeding the consensus forecast of 3.6%. However, core CPI, which does not include food and energy prices, remained unchanged in line with expectations at 4.3%.
The analyst argued that this data may reduce the possibility of a new interest rate increase by the FED, which is scheduled to meet next Wednesday. He also noted that US Treasury bond yields fell by 1% following the inflation data.
The analyst added that yields could continue to fall if the producer price index (PPI) comes in lower than expected on Thursday.
“The $26,300 Level is Important in Bitcoin”
As for Bitcoin (BTC), van de Poppe said it is currently consolidating near $26,100 and testing a resistance level at $26.3K. He noted that a break above this level is very important for the continuation of the rise, and a support level of 25.3-25.6K dollars should be maintained.
*This is not investment advice.