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Investors are bracing themselves for a crypto crash as FTX gets the green light to sell its crypto holdings.
Investors are bracing themselves for a crypto crash as FTX gets the green light to sell its crypto holdings. Bitcoin makes up a significant share of the bankrupt crypto exchange’s list of assets, next to Solana.
FTX Sell-Off Gets Approval
FTX requested the U.S. Bankruptcy Court for the District of Delaware permission to sell, stake, and hedge its crypto assets. On Wednesday, Judge John Dorsey approved that FTX can sell its holdings, capped at $100 million worth of tokens per week.
FTX owns $1.16 billion in Solana (SOL), $560 million in Bitcoin (BTC), $192 million in Ethereum (ETH), and $137 million in Aptos (APT), among others.
Although FTX customers raised concerns regarding the potential consequences of the sell-off like the possibility of a crypto market crash and FTX’s ownership of the said holdings, they were overruled.
Will the Market Make a Counter Move?
Despite Wednesday’s court ruling, the crypto market has not shown signs of a serious downtrend. In fact, high-cap assets are making single-digit climbs on the weekly charts, reversing the losses they made over the last two weeks.
Solana 1-week price action, 15 Sep 2023, CoinMarketCap
The Solana price movement has been particularly optimistic. SOL has been on a relatively stable upward trajectory since September 12. It can be interpreted as reversing the coin’s 23.55% decline over the last thirty days. But investors might also be preparing for a strong bull run.
SOL’s counter move to the news can’t be ruled out, given the unlock schedule of FTX’s holdings and derivatives market positioning.
The news has yet to exert significant selling pressure in the market.
For example, the Bitcoin price has also been on the rise since September 12, touching above $26,600 at the time of writing.
Bitcoin price action for the last seven days, 15 Sep 2023, CoinMarketCap
BTC Downtrend will be Short-term, But Investors Seek Refuge in Bitcoin BSC for Profits
There are multiple reasons why the FTX sell-off won’t translate into a catastrophic crypto crash for Bitcoin. For example, FTX is not just preparing to liquidate its assets, but also stake and hedge them as part of mitigating the risks.
Equally compelling is the ongoing rumor that Tesla may soon start accepting Bitcoin payments. In 2021, Elon Musk announced that Tesla would integrate Bitcoin payments once miners opt for roughly 50% clean energy sources “with positive future trend”.
Sustainable Energy Sources Rise >50%
👉Falling emissions plus a dramatically rising hash rate can only mean one thing; Bitcoin mining is consuming more sustainable energy in its mix. pic.twitter.com/AGXrKWDWuI
— Jamie Coutts CMT (@Jamie1Coutts) September 14, 2023
According to a recent tweet by analyst Jamie Coutts, the percentage of energy used for Bitcoin mining coming from renewable sources exceeded 50%.
Bitcoin-halving, scheduled for 2024, is another factor that will give resilience to the Bitcoin price.Despite that, investors are opting for new cryptocurrencies like Bitcoin BSC (BTCBSC) to offset the risks of the looming crypto crash. Built on BNB Smart Chain, the trending “2.0 coin” takes inspiration from Bitcoin’s tokenomics.
Within a few days of going live, the ongoing Bitcoin BSC presale has sailed past the $2M milestone to the pleasant shock of the market. The growing hype around the presale, however, is understandable.
2.0 Coins Have the Spotlight this Year
The buzz around “2.0 coins” is peaking in the cryptocurrency space, kindled by projects like BTC20 and BTC2.0.
For example, BTC2.0 took the market by storm with an astonishing ~80-fold jump earlier this year. Investors who made an initial investment of $1000 in the coin were sitting on top of $80,000 in a few days.
That’s more than a year’s salary for many people. So it makes sense why investors are rushing to secure Bitcoin BTC coins before the presale ends.
BTC20, described as the equivalent of Bitcoin on the Ethereum network, also witnessed a 600% surge shortly after its launch.
More 2.0 coins are entering the market with unique value propositions. The latest to capture widespread attention is Bitcoin BTC due to its compelling stake-to-earn system.
Passive Rewards for Stakers
Bitcoin BSC is a stake-to-earn crypto. Unlike Bitcoin, you don’t have to mine Bitcoin BSC using energy-intensive mechanisms to earn rewards.
Instead, you can opt for passive income by simply staking your Bitcoin BSC tokens into the protocol. Every time a new block is confirmed on the blockchain, stakers are rewarded.
Staking is accessible to presale investors too. Since the APY reduces with more investors joining in, early investors get a significant edge. The staking reward system follows a block schedule similar to Bitcoin’s.
Can Bitcoin BSC Jump from $1 to $30,000 Like Bitcoin?
To say Bitcoin BSC will jump from $1 to $30,000 like Bitcoin is too optimistic.
But even if it manages to replicate a small percentage of Bitcoin’s performance, early investors will get generous returns.
There is a popular misconception that cryptocurrencies don’t yield exponential returns like they used to. True, high-cap cryptos like Bitcoin and Ethereum can’t jump multifold up the charts like they once did. They have little room for growth now.
New cryptocurrencies like Bitcoin BTC, on the other hand, have the potential to kindle explosive price action. The key lies in seizing the opportunity early.
The Bitcoin BTC presale is now live for a fixed price of $0.99 for early Investors interested in the project. It supports purchases in ETH, USDT, and BNB.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.