Bitcoin, the world's largest digital currency, briefly fell below $25,000 on Monday for the first time in three months. The slump saw the cryptocurrency dip as much as 3.3% to $24,958, its lowest level since June 15. This occurrence coincides with the ongoing speculation that FTX, which is currently undergoing bankruptcy proceedings, may commence sales of its digital assets.
FTX holds one of the largest stakes in Solana, another prominent cryptocurrency which has seen a decline for four consecutive trading sessions. The cumulative drop over this period amounts to approximately 10%. FTX had sought court approval last month to either sell or transfer its digital assets. A hearing regarding this matter is slated for Sunday.
It's noteworthy that Bitcoin's dip to its lowest point since June 15 comes in the wake of BlackRock Inc (NYSE:BLK).'s application to become the first entity to offer a US exchange-traded fund that invests directly in Bitcoin. However, the US Securities and Exchange Commission has deferred making a decision on BlackRock's filing, along with several others.
The recent downward trend in cryptocurrencies aligns with an eight-week streak of dollar strengthening. This trend has exerted additional downward pressure on Bitcoin and other digital currencies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.