The crypto market experienced a massive sell-off over the past 24 hours. Several assets belonging to the investment products of Digital Currency Group (DCG) Grayscale, such as NEAR, Filecoin, Ethereum Classic, etc. recorded an average drop of more than 10%, fueling fears that the firm was selling.
According to Coingecko, the crypto market fell down reporting grew 5.4% to $838 billion. information CoinGlass revealed that $237.86 million was liquidated from the industry. Bitcoin fell 4.3% to $16,710, while Ethereum saw a 7.6% loss to trade at $1,180 as of press time.
Altcoin price faltering
Over the past 24 hours, several DCG-related assets such as Filecoin, Near, Ethereum Classic, Litecoin, Bitcoin Cash, etc. all saw losses. Substantial red candles were also seen in Binance-backed coins such as BNB, Trust Wallet Token, etc. Other altcoins such as Algorand, Cardano, Chainlink, Avalanche, and Solana saw their values decline sharply during the selloff.
While it was unclear why the asset saw a sudden selloff during this period, the crypto market experienced one of its most turbulent weeks in recent memory.
Sam Bankman-Fried, the founder of FTX, was arrested in the Bahamas on the orders of the United States government. The SBF was later denied bail as he was considered a flight risk.
Binance, the largest crypto exchange in the space, also experienced a surge in withdrawals following growing fears over its reserves. BeinCrypto reported that the exchange experienced nearly $5 billion in withdrawals during the height of the run.
Meanwhile, several crypto analysts have speculated that the current selloff could be from Grayscale’s parent company, Digital Currency Group (DCG).
Will Clemente, co-founder of Reflexivity Research, tweeted that many speculators wondered whether the selloff was derived from DCG itself. He added images of the price performance of some of these altcoins to reinforce his point.
Crypto analyst Miles Deutscher said that there was a strong possibility that DCG was dumping. According to him, “bad news is likely to come.”
Another analyst, Carl, Told He “wouldn’t be surprised if this selloff is a desperate attempt to destroy what else it can do before declaring bankruptcy soon.”
The community’s concern over DCG’s financial position has increased following recent events in space. Its crypto lending firm Genesis recently halted customer withdrawals following the collapse of FTX.
Meanwhile, the investment firm also revealed that it has liabilities of $2 billion, most of which is owed to Origin. The growing discount to Grayscale’s Bitcoin Trust (GBTC) shares has further fueled apprehensions.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.
