Dear all,
FTX’s digital assets holdings have become a focal point of attention for traders. Let us bring you the usual NFT and digital market overviews for the first two weeks of September.
🌐 Two Weeks Market Brief
Bitcoin for the past 2 weeks ending 11th September fell -3.67%, Ethereum -6.12% and the rest of the market -4.35%. Continued downward pressure on digital assets persists amid concerns about FTX’s potential liquidation of its holdings.
Court filing shows that FTX held approximately $7B in total assets of which $3.4B are liquid (Figure 1). A pending court ruling, set to be decided on September 13th, will determine whether these assets can be liquidated. Should the liquidation approval be granted, it will undoubtedly have a substantial impact on the entire market, particularly given the prevailing low liquidity across the board. In another news, $ARB experienced a 10% daily crash following reports of token deposits onto exchanges by entities Wintermute Trading and other whales, presumably with the intent to sell.
Figure1: FTX’s liquid holdings as of August 31 pricing / Source: US Bankruptcy Court filing; Case 22-110680JTD
Risk assets are maintaining strong performance with the market expecting dissipating inflation. Fears of long-term yields rising have also abated to an extent. However, the primary macroeconomic concern has switched focus to the escalation in crude oil prices, posing a potential challenge for risk assets. Worries about a Japanese central bank adopting a more hawkish stance have driven Japanese bond yields to record highs, adding another layer of concern. Upcoming events to watch include the release of US CPI data scheduled to tomorrow.
NFT Market Overview
Volumes in the Ethereum market are still low but higher than two weeks ago, sitting at 4,369 ETH. Not a significant change in the blue chip index.
Source: nftgo.io
Here are top 5 collections based on trading volume over the past 7 days: