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Reading: Billions of Dollars Coming Soon to Cryptocurrency Markets
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EdaFace Newsfeed > Latest News > Crypto News > Billions of Dollars Coming Soon to Cryptocurrency Markets
Crypto News

Billions of Dollars Coming Soon to Cryptocurrency Markets

vitalclick
Last updated: October 10, 2024 1:05 am
4 months ago
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There will be a significant capital inflow in the crypto market in the coming months. FTX’s creditors are expected to be paid over $6.8 billion. This increase will occur following the repayment plan approved by the court.

Approved Repayment PlanMarket Activity and Expectations

Approved Repayment Plan

The exchange, which is officially bankrupt, said it had $12.6 billion to pay back to customers. It is estimated that this amount could rise up to $16.5 billion when more assets are liquidated. Initial distributions are expected to be around $1.1 billion and will provide a significant impact on the crypto market, particularly Bitcoin. $62,122It is expected to provide much needed support to .

While FTX creditors will benefit from this payment plan, the process continues to gain momentum. Galaxy Digital Holdings Research President Alex Thorn stated that these payments could bring liquidity back to the market. This situation may trigger price movements of major cryptocurrencies.

The court officially approved the bankruptcy plan and set a clear timeline for repayment. According to the approved plan, small receivables will be paid in December and larger receivables will be paid in the first half of next year.

Market Activity and Expectations

This structured payment plan provides for the gradual return of FTX creditors’ funds. It is anticipated that the entire process may take up to three years to resolve all claims. The controlled release of funds aims to prevent sudden fluctuations while limiting potential market impact.

Benjamin Celermajer: “Some of this flow returning to crypto could provide a potential price catalyst for illiquid markets.”

Research firm K33 estimates demand from FTX reinvestors at approximately $2.4 billion. However, they warn that because payments are made in waves, the impact on the crypto market may be limited and spread throughout the next year.

While immediate changes are not expected, the gradual entry of funds into the market could stabilize and lift market valuations in the coming months. The total amount to be paid over a few months will be 6.8 billion dollars.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.

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