The long -awaited FTX credit payments are To start today, February 18 after more than two years of bankruptcy. This payment, which is the first batch, aims to target small creditors. Nevertheless, payment could have some effects on the cryptography industry, especially if creditors receive payments in crypto.
A Crypto, excavo analyst, has shared his point of view On tradingView, highlighting potential liquidity changes that could follow the payments of FTX creditors and wider implications for Bitcoin and Altcoins.
Twenty FTX payments: How does that affect the cryptography market?
The FTX confirmed that the creditors’ reimbursements will start on February 18, starting with those of the convenience class category of creditors with complaints of $ 50,000 or less. These creditors will receive a full reimbursement plus an additional annual interest of 9% accumulated since November 2022, totaling approximately $ 1.2 billion in payments.
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For creditors with larger complaints exceeding $ 50,000, distributions will start at T2 2025, the FTX providing for $ 7 billion as part of a A larger payment of $ 16 billion in total. As Noted by ExcavoThe importance of these payments extends beyond individual investors, because the redistribution of these funds could reshape liquidity on the cryptography market.
If creditors receive crypto payments and decide to sell, this could create downward pressure on the market. However, most of the reimbursements are expected in cash, and it is now allowed to see how investors will reinvest them on the market. The first thought is that most of these reimbursements will return to Bitcoin, which would trigger a Bitcoin price rally.
However, with billions to enter the market, an important part could run into altcoinsEspecially if ETHEREUM ETHEREUM to mark out receive regulatory approval later in 2025. This aligned with speculation that an altcoin wave could lead capital to other altcoins Like Cardano, Dogecoin, XRP and especially Solana. The analysis of Eccavo noted that the lack of rotation of liquidity in the Altcoins has left many underestimated, but this could change if a substantial part of FTX reimbursements is redirected to the wider cryptographic market and not bitcoin.
Will Bitcoin compete or rally in response to FTX reimbursements?
THE Total FTX reimbursement Creditors are expected to exceed $ 16 billion, most of them being cash reimbursements. The injection of billions of dollars could cause new purchase pressure if it is reinvested on the market. You might say that this is the general consensus among bullish investors.
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For example, some members of the Crypto community of Reddit noted that they were impatient to reinvest their FTX payments in the crypto industry. “Everything degenerates directly into the crypto”, ” A Reddit user commented.
With Bitcoin at the forefront recent entries on the market, the majority of payment might as well go back in Bitcoin. Crypto excavo analyst thinks the opposite, noting that most FTX reimbursements that flow will enter the Altcoin market.
At the time of writing this document, Bitcoin is negotiated at $ 95,300, down 0.75% in the last 24 hours.
Felash star image, tradingView.com graphic
