While Bitcoin is trading in an equilibrium position, the global crypto market capitalization is closer to losing the crucial $1 trillion mark. Meanwhile, the other tokens within the top 10 are also following the star crypto and are trading within a very narrow range, but being lenient towards the south. However, the next couple of days are expected to be very important for Bitcoin and some of the altcoins, which may shed light on the next plan of action.
Bitcoin, which is maintaining a declining trend, is sitting firmly above the $25,000 support level. This was the primary level that initiated the BlackRock-fueled rally to $31,500. Moreover, with the CPI & PPI being announced this week, more volatility is expected. Additionally, the Mt.Gox and Silk Road Bitcoin overhangs continue to loom. Therefore, the reaction of BTC price to all these events could be extremely crucial for the entire crypto space.
As mentioned in the earlier composition, FTX is likely to get approval to liquidate its $3.4 billion worth of crypto, of which over $1 billion is SOL. However, it has to be noted that the majority of SOL is locked and will be vested until 2028. Considering the liquid SOL, Galaxy is incentivised to sell for the best possible price, which implies OTCs and gradual selling. Hence, yet another ‘buy the rumour & sell the news’ event could occur where the SOL price may find a new bottom with the beginning of FTX’s actual selling.
Polkadot is closer to facing a ‘hidden unlock’ event. Back in 2021, it held the first parachain crowd loans and collected a total of $400 million in DOT. The DOT price was valued at around $25 then, and presently it’s around $4. In late October, users will receive their previously locked DOT. While the SOL-FTX saga has been making huge rounds, the scare around the DOT price has been overshadowed.
Collectively, major events are knocking on the crypto space in the next few days, which may kick-start a fresh bearish wave among the majority of the tokens. Meanwhile, if the bulls display some strength, then the markets may begin to recover very soon.