FTX Repayments Set to Flood Market with $5B: What’s Next for Bitcoin and Ethereum? | Bitcoinist.com
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure
It has been three years since the collapse of the FTX crypto exchange in 2022, which resulted in the loss of billions of dollars in investor and creditor deposits. As bankruptcy proceedings have recently concluded, creditors have received a repayment plan. With repayments already commencing, another significant round of billion-dollar repayments is anticipated for creditors, which may impact the market.
The Potential Market Impact of FTX Crypto Disbursements
Crypto analyst Axel recently shared on X (formerly Twitter) an essential update for the crypto market: FTX is set to process $5 billion in payouts to creditors at the end of the month. Notably, these payments will be made in stablecoins.
Related Reading: XRP Maintains Midline Support That Could Lead to a Breakout; Why $2.9 Might Be Next
This is significant as the stablecoin payments differ from previous disbursements, as there won’t be assets to flood the market. Consequently, this capital could either return to the market, but the extent of a price increase would hinge on where these funds are channeled post-distribution.
The distributions are expected to occur on May 30, potentially creating substantial buying pressure in the market. As the crypto analyst notes, the timing for this distribution is particularly favorable. This is primarily due to Bitcoin’s current price lingering near all-time highs, while the Ethereum price continues to ascend.
Source: X
Given the $5 billion in distribution, the crypto analyst anticipates that investors won’t let the funds sit unutilized in their wallets. Rather than withdrawing and departing the market, these investors, who are familiar with the crypto space, are likely to reinvest their funds.
“Most of them remained in crypto despite the FTX collapse, and now that they’re retrieving their funds, they will likely reinvest that liquidity back into the market,” Axel stated. If these investors return, it could potentially ignite a rally in the market.
Additionally, the crypto analyst has suggested potential market targets if this rotation takes place. For the Bitcoin price, expectations indicate that such an influx of liquidity could push the leading cryptocurrency above $120,000, potentially triggering the next altcoin season. “Keep an eye on May 30,” the crypto analyst remarked. “It feels like the beginning of the next phase.”
BTC moves toward $107,000 again | Source: BTCUSD on TradingView.com
Featured image from Dall.E, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Source link
#FTX #Repayments #Dump #Market #Bitcoin #Ethereum #React #Bitcoinist.com
