Dogecoin Price Under Pressure Amid FTX Creditor Liquidation

• With $3.4 billion worth of crypto holdings, the upcoming FTX creditor liquidation has majorly shaken the crypto market.
• Dogecoin (DOGE) price got some boost on Tuesday, as Elon Musk’s new biography release has a mention of the memecoin.

The world’s largest memecoin – Dogecoin – has been on investors’ radar over the last week with the DOGE price up 2.8% in the last 24 hours and trading at $0.62.

However, investors are hinting to maintain caution at this stage due to upcoming FTX creditor liquidation. The administrators of FTX have successfully retrieved approximately $7 billion in assets, including $3.4 billion in cryptocurrencies. A court hearing scheduled for Wednesday will evaluate a proposal to initiate the sale of tokens with the aim of repaying creditors, as indicated in recent filings.

According to a presentation, FTX possesses approximately $1.2 billion worth of SOL, the native token of the Solana network. Their asset inventory further encompasses $560 million in Bitcoin, the most prominent cryptocurrency, as well as $192 million in Ether, the second-largest cryptocurrency. Additionally, they hold $67 million in Aptos (APT) and $42 million in Dogecoin (DOGE), among various other assets.

Nonetheless, FTX’s legal documents indicate that the exchange is poised to gradually divest a maximum of $100 million in digital assets each week. This approach could mitigate the potential bearish impact on the market, presenting a more gradual decline in asset prices compared to a sudden and extensive liquidation of all its assets.

FTX is in the process of considering the appointment of the asset management division of billionaire Michael Novogratz’s Galaxy Digital Holdings Ltd. to assist in managing the substantial array of tokens held by the ailing exchange.

Elon Musk’s Biography Release Pumps Dogecoin

After some selling pressure on Monday, Dogecoin (DOGE) has once again gained the lost ground. As said, the DOGE price is up by 2.8% trading at $0.062 with a market cap of $8.7 billion.

Upon the emergence of previously undisclosed information regarding Elon Musk’s involvement with Dogecoin, the cryptocurrency saw a surge in bullish activity.

This development was not unexpected, as Musk has consistently expressed his strong backing for DOGE through his social media presence, primarily on Twitter, which has frequently propelled the coin’s value upward.

The anticipation for Walter Isaacson’s book, which is set to unveil Musk’s role in the Dogecoin ecosystem, is palpable. Its publication is scheduled for September 12th, and enthusiasts are eagerly awaiting further insights it may provide.

A small part of the book reads, “Perhaps, he said half-jokingly, it could have a payment system using Dogecoin, the semi-serious cryptocurrency whose development he had been quietly funding.”

Historically, September has consistently demonstrated a pattern of being the least favorable month for digital assets. Over the past decade, Bitcoin has, on average, experienced a decline of 6.2% during this month, as per data compiled by Bloomberg.

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