The native cryptocurrency of the FTX exchange, the FTT token, has registered a remarkable upswing in its market value, following the recent sell out of GBTC shares. In a span of just 24 hours, FTT’s price has ascended by over 10%, hitting a new price point of $2.83.
Market Reaction to GBTC Shares Sale
As the crypto community digests the news of FTX’s disposal of GBTC shares, the FTT token has seen a significant rise. Market data from CoinMarketCap indicates a surge in trading volumes, which have ballooned by nearly 270%, amounting to $62.5 million in trades.
FTT’s Price Performance and FTX’s Strategic Moves
FTT’s price movements are often closely tied to FTX’s strategic decisions. The recent growth can be attributed to FTX’s sale of approximately $1 billion worth of spot Bitcoin (BTC) ETF shares to Grayscale Investments. Since the initiation of the crypto investment fund in January 2024, there has been a reported sale of 22.3 million GBTC shares, a move likely connected to ongoing bankruptcy proceedings.
This transaction may relieve some of the pressure on Bitcoin’s rate, as it explains the significant capital outflows from Grayscale. Historically, FTT has shown sensitivity to FTX’s actions, with a notable 24% increase in January following user complaints about the indemnity plan, and nearly a 30% rise in December 2023 after FTX announced a bankruptcy agreement with its Bahamian subsidiary.
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