The cryptocurrency landscape saw a sea of red on Monday, September 11, with traders on edge about the potential implications of a series of forthcoming events, notably the FTX’s potential $3 billion liquidation and the impending release of the CPI data, both scheduled for September 13.
Market Statistics
Recent statistics from QuantifyCrypto reveal a downtrend across the top 50 cryptocurrency projects. The overall market cap of cryptocurrencies plunged by over $10 billion, marking an accumulated decline of nearly 2% over the previous 24-hour period.
FTX Liquidation: What’s the Story?
FTX reportedly holds $3.4 billion in crypto assets, set to be sold off in increments ranging from $100-$200 million each week. However, this action hinges on a decision from the Delaware Bankruptcy Court, which was due on September 13.
A recent tweet from Aaron Bennett (@AaronDBennett) listed FTX’s crypto holdings ready for liquidation:
- $685 million in Solana (SOL)
- $529 million in FTX token (FTT)
- $268 million in Bitcoin (BTC)
- $90 million in Ethereum (ETH)
- $67 million in Aptos (APT)
- $42 million in Dogecoin (DOGE)
- $39 million in Polygon (MATIC)
- $35 million in BitDAO (BIT)
- $29 million in XRP token (XRP)
On September 13th, #FTX will probably get the courts approval to sell these coins:— Aaron Bennett (@AaronDBennett) September 10, 2023
$685 million of $SOL
$529 million of $FTT
$268 million of #btc
$90 million of #eth
$67 million of $APT
$42 million of #doge
$39 million of $matic
$35 million of $BIT
$29 million of $XRP… pic.twitter.com/RdzXHQzUO2
Will Cryptocurrencies Crash? U.S. CPI Data to Watch For
Coinciding with the anticipated court ruling on the FTX’s potential asset sell-off is the release of August’s U.S. CPI data. This data is a pivotal factor in guiding the Federal Reserve’s decisions on interest rates, thereby influencing both the crypto and stock markets.
An expected CPI rise to 3.6% (up from the previous month’s 3.2%) suggests that the cryptocurrency market might already be adjusting for another potential hike in interest rates. Yet, it’s noteworthy that while the year-on-year August CPI is projected to jump by 40 basis points over July’s figures, the Federal Reserve typically leans on the Core CPI data for its decision-making process. Given the forecasted decline in August’s Core CPI to 4.3% (down from July’s 4.7%), the market largely anticipates no hikes in the interest rates come September 20.
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