A widely followed crypto analyst is breaking down the latest developments in the FTX bankruptcy and their implications for the broader markets.
Crypto trader Michal van de Poppetellshis 666,900 followers on the social media platform X that FTX’s approval to sell $3.4 billion in crypto assets, approximately a third of which is Solana (SOL), combined with the latest consumer price index (CPI) numbers, shouldn’t affect the crypto markets very much.
“FTX gets approval to sell $3.4 billion in crypto assets & CPI data comes in worse than expected
Markets aren’t falling down that much, and not much should be happening from it.
The Solana, which corresponds to $1.2 billion of the assets of FTX, is mostly staked and can’t be sold.
Now, what’s next?”
According to the trader, while FTX can sell up to $200 million of its assets every week, most of the Solana assets can’t be sold.
“The major fact is that we should be seeing a case of Solana being sold off massively, but as an anticipation, Solana was already sold off entirely in the past week and could result in a ‘sell the rumor, buy the news’ type of thing.
Most of the Solana assets can’t be sold. Only 7 million of SOL, which are mostly sold already.”
Van de Poppe also looks at the most recent CPI data.
“CPI came in. Headline CPI came in at 3.7%, while 3.6% was expected and that shows a rally in the data, inflation peaking up.
Core CPI, however, that one came in at 4.3%, while 4.3% was expected. This is a substantial drop and tackles the potential of another rate hike. Most likely we won’t see that in the upcoming meeting on Wednesday.”
The analyst says the markets have barely responded.
Looking specifically at the king crypto, the analyst says that Bitcoin (BTC) needs to break above $26,300 to confirm a bullish trajectory.
“Interesting days, but Bitcoin is currently consolidating around $26,100 and fighting a potential breakout at resistance after sweeping $25,000.
Remember, breakout above $26,300 is vital for bullish continuation and support should hold at $25,300-25,600.”
Overall, Van de PoppesaysBTC traders are still early in the game.
“You’re not failing at investing in Bitcoin and crypto.
You’re just early.”
BTC is worth $26,700 at time of writing.
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This article was originally reported on The Daily Hodl.