Bitcoin resists after U.S. authorizes FTX´s crypto liquidation

(Sharecast News) - The cryptocurrency market is resisting. Bitcoin (BTC) rises moderately in the last 24 hours and remains above $26,200, while Ethereum (ETH) hovers around $1,620. The truth is that the reigning cryptocurrency and all the other altcoins have managed to maintain their gains after the Delaware Bankruptcy Court gave FTX permission to liquidate its cryptoasset holdings, valued at $3.4 billion, yesterday, on Wednesday. The plan of the bankrupt cryptocurrency exchange is to sell up to a maximum of $200 million per week in the market, which raised some fears among investors as they understood that the prices of digital assets could be seriously affected.

For the time being, the reaction has been much less pronounced than expected. In fact, tokens seriously exposed to FTX, such as Solana (SOL) and cryptos native to the eponymous blockchain, are not suffering. SOL has actually risen around 5% in the last 24 hours and its figure is holding fairly steady since the plunge suffered after the company's intentions were revealed earlier in the week.

These movements seem to support some experts´ beliefs, who pointed out that the initial market reaction may have been exaggerated, especially given the harsh punishment suffered by altcoins. Similarly, other analysts remarked that the real selling pressure could be seen in Bitcoin, but it would be more related to Mt. Gox sales than FTX liquidations.

Be that as it may, this week marks one month since Bitcoin sharply lost $29,000. Since then, the reigning cryptocurrency has been hovering between 25,000 and 26,000 points, with the occasional dip below this range, and waiting for a future approval of spot ETFs from BlackRock and a dozen other companies to give the price a boost.

And that seems to be what's left for BTC: waiting. "Bitcoin's technicals are sliding. Price is trading around support at $26,000, but I doubt it is a hard floor," noted Charlie Morris, chief investment officer at ByteTree Asset Management. For its part, QCP Capital expects an "imminent final decline to close out the quarter at the lows."

According to Morris, the major cryptocurrency's decline is evident and it will continue to move between $20,000 and $30,000 until the halving next April. "We just have to wait for better times," he sentenced.

On the other hand, the reigning cryptocurrency does not seem to find comfort in inflation data either. August's upward reading, even with the decline in the core rate, gives the Federal Reserve (Fed) no reason to loosen its stance and not only not rule out further rate hikes, but even suggest an easing of monetary policy. This scenario, that of a looser Fed, has been seen by some analysts as a possible catalyst for Bitcoin, following several negative news for the cryptocurrency industry.

In other market news, Ripple (XRP), Cardano (ADA) and Dogecoin (DOGE) rise moderately in the last 24 hours.