Bitcoin is currently rising after falling below $25,000 on Monday, with many investors preparing for FTX Properties to sell billions of dollars of the crypto asset to the market.
The most popular cryptocurrency rebounded after falling as low as $24,900 on Tuesday morning, rising nearly 1.6% to about $26,100. Ethereum, the second-most popular cryptocurrency, rose less than 1% to around $1,600.
Underlying the decline was investor anxiety over possible actions by the FTX bankruptcy estate, which is responsible for more than $3.4 billion in cryptocurrencies. The estate is keen to sell it to recoup as much as possible for the company’s creditors. Last month, the company, led by its new chief executive, bankruptcy expert John J. Ray III, asked the court overseeing its case for permission to hire Mike Novogratz Galaxy Digital Capital Management to help them get started selling, staking, and hedging crypto assets.
Under the plan FTX filed with the bankruptcy court, the company will be allowed to sell up to $100 million in tokens per week, with that number potentially rising to $200 million for specific tokens. The plan still must be approved by the bankruptcy court.
As of January, the company held an estimated $268 million worth of Bitcoin, According to decryption, and unloading cargo too quickly could drive down prices. However, smaller cryptocurrencies such as Solana and Polygon, which has an estimated $685 million and $39 million worth of cryptocurrencies respectively, may suffer more from the selloff.
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