Bitcoin drops below $ 25,000 for the first time in 3 months

On Monday, the flagship cryptocurrency briefly fell below $ 25,000 for the first time in three months. This happened amid rumors that the notorious FTX exchange plans to start selling digital assets in bankruptcy proceedings, Bloomberg journalists reported.

The price of BTC $56,278.68 Bitcoin -1.35% Market capitalization $1.11 trillion VOL. 24 hours $2.77 billion dropped by 3.3% to $ 24,958, the lowest since June 15. The previous drop came after BlackRock filed an application to register a spot bitcoin ETF. The U.S. Securities and Exchange Commission (SEC) has postponed a decision on BlackRock’s application, as well as similar applications from other companies, but the SEC will have to return to this issue after a court ruling that called the Commission’s refusal unlawful.

«We've seen the dollar strengthen for 8 weeks in a row, which puts downward pressure on the bitcoin price. There is also continued frustration with BTC regulation, and we have a court ruling on a number of FTX crypto assets such as Solana that could lead to an oversupply of sales,» said James Butterfill, head of research at CoinShares.

The cryptocurrency rate of the Ukrainian developer Solana has been falling for the fourth trading session in a row, having dropped by 10% during this time. The market’s decline was fueled by reports of the upcoming sale of the assets of the bankrupt FTX cryptocurrency exchange and its subsidiaries. As it turned out, FTX currently owns almost $ 1.2 billion in SOL, the Solana network’s own token, as well as $ 560 million in BTC and $ 192 million in ETH.

Last month, the crypto exchange went to court for permission to sell or transfer digital assets. A hearing on the matter is scheduled for September 13. It is possible that the court will grant the crypto exchange’s request on the same day, analysts said. In August, the FTX administration requested court approval to appoint Galaxy Digital as an investment manager to oversee token holdings, which will allow it to regulate the crypto exchange’s sales and reduce their impact on the cryptocurrency market.