Next week marks a crucial moment for the cryptocurrency community as the bankrupt FTX exchange begins its repayment process. With a staggering $16 billion set to flow into the accounts of crypto traders, many experts predict that this will create significant buying pressure on both Bitcoin and the broader crypto market.
However, they also suggest that this could be the last opportunity this year for investors who missed the market crash in August.
FTX’s $16 Billion Repayment Set to Begin
The upcoming repayment is a result of the FTX collapse, where many traders suffered substantial losses due to the fraudulent actions of former CEO Sam Bankman-Fried. The company has revised its reorganization plan to allow for full repayment.
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After years of restructuring, the plan now seems to be nearing its conclusion, with the next court hearing scheduled for October 7. If approved by the court, this repayment will have 60 days to distribute to creditors, meaning cash will reach affected traders sometime before December 7.
How Will the Crypto Market Be Affected?
The distribution of $16 billion to FTX creditors in Q4 2024 is likely to be a key catalyst for the cryptocurrency market, especially Bitcoin, Solana, and SOL network cryptocurrencies.
Experts argue that this repayment is unlike the recent distribution from Mt. Gox, which led to selling pressure in the BTC and crypto markets. Instead, this payout will inject a massive amount of cash into traders’ hands, driving significant buying pressure.
Of course, delays or underwhelming distribution could still occur, but in the current subdued sentiment of the crypto market, this event brings the potential for a new price surge.
In particular, with growing excitement, many believe this could lead to “the biggest Bull Run ever.” However, investors should remain cautious and conduct thorough research before making investment decisions in this volatile market.