Ethereum and Solana Traders on Red Alert as FTX Begins $800M Repayments on May 30

In the dim light of late March, Ethereum‘s price danced within a meager 2% range, teetering between $1,750 and $1,820. Yet, like a storm brewing on the horizon, an impending liquidity event threatens to unleash chaos upon the market in April 2025. With FTX preparing to commence creditor repayments on May 30, traders of Ethereum (ETH) and Solana (SOL) brace themselves for the tumultuous waves ahead. 🌊

Ethereum (ETH) Set to Close March 2025 with 18% Losses

Ah, the tale of Ethereum in March 2025—a saga of underperformance, weighed down by the burdens of network upgrades, the whims of Trump’s tariffs, and the watchful eyes of Congress scrutinizing former SEC Commissioner Paul Atkins. What a delightful mess! 😅

As the clock ticks, ETH finds itself languishing around the $1,830 mark, reflecting a disheartening 18% decline from its March 1 opening price of $2,237. Meanwhile, Bitcoin (BTC) remains the calm in the storm, down less than 2% for the month, clinging to a solid $83,400 after starting March at $84,400. What a contrast! 🥴

This stark divergence in performance highlights Ethereum’s vulnerability to bearish winds that blow stronger than the general economic climate.

FTX Payouts from May 30 Could Drain $800 Million in Ethereum and Solana Liquidity

Ethereum’s plight compared to Bitcoin reveals the heavy hand of asset-specific challenges. One such challenge is the looming FTX repayments, set to kick off on May 30. The bankrupt exchange has been busy, moving assets into exchange wallets like a squirrel hoarding nuts for winter, preparing for the inevitable liquidation. 🐿️

On-chain data from Arkham Intelligence unveils that FTX holds a staggering $800 million in assets nestled within the Ethereum and Solana blockchains. What a treasure trove! 💰

As illustrated above, a hefty 61% of these holdings are Solana-based assets, while a mere 39% belong to Ethereum. Since the cataclysmic collapse of FTX in November 2022, Solana, Bitcoin, Ethereum, and XRP have seen their values soar, with SOL leading the charge at an astonishing 650% increase. Talk about a comeback! 🎉

However, court filings confirm that FTX’s repayments will be in USD, necessitating the liquidation of assets to conjure up cash. The anticipation of this forced selling has already cast a shadow over ETH and SOL prices, with further declines looming ominously in April 2025.

FTX will begin repaying its major creditors on May 30 from its $11.4 billion reserve, with some payouts reaching a jaw-dropping 118% per claim. But alas, these repayments are tethered to crypto prices at the time of FTX’s bankruptcy, ignoring the significant gains these assets have made since late 2022. To sweeten the deal, creditors will receive an additional 9% annual interest on their claims. How generous! 🙄

Ethereum and Solana Could Underperform in April 2025

With the FTX liquidation event looming, the price forecasts for Solana and Ethereum suggest a continued bearish trend, likely underperforming against Bitcoin and other major assets. The market has already priced in expectations of substantial sell pressure, and further declines remain probable if liquidation volumes exceed current projections. Unless a miracle occurs and new demand offsets these sales, ETH and SOL may face a rocky start to Q2 2025. Buckle up! 🎢

Read More

• FC Mobile 25 Hero Chronicles event Guide and Tips

• Top gainers and losers

• The White Lotus Season 4 release date, location, and more

• ARC PREDICTION. ARC cryptocurrency

• All Overwatch 2 Totally Normalwatch event challenges and rewards

• What is Venus Vacation Prism? – Dead or Alive Xtreme explained

• The best Monster Hunter Wilds mods and how to install them

• Bridgerton’s Simone Ashley and F1 Star Carlos Sainz Jr. Team Up for L’Oreal Ad in Paris

• Weak Hero Class 1 Ending Explained

• The best VALORANT crosshair codes from pro players

2025-03-31 23:35