Cryptocurrencies are still stuck in a correction phase, but a series of supply events worth billions of dollars could further delay a meaningful recovery.
“If the unlocking of nearly $2 billion in tokens continues at a rapid pace over the next 10 weeks, the altcoin market could fall,” crypto analysis firm 10x Research said in a report on Wednesday.
Large-scale token unlocks in cryptocurrencies are typically bearish events that increase supply by distributing assets previously locked in vesting contracts to early investors such as team members, organizations, and venture capitalists. increase.
Over the next two months, Aptos {{APT}} will receive approximately $97 million, Starkware {{STRK}} will receive approximately $79 million, Arbitrum {{ARB}} will receive approximately $94 million, and Immutable X's {{IMX}} will receive approximately $97 million. $53 million, $330 million. Avalanche's {{AVAX}}, Optimism {{OP}}'s $64 million, PRIME's $28 million, Sui {{SUI}}'s approximately $1 billion, Ethena According to data compiled in the report, (ENA), $171 million of Altlayer's ALT and $135 million of XAI tokens will be added to circulation.
“Venture capital investors may be under pressure to lock in recent gains, and positive momentum could cap the upside performance of tokens, especially as unlocking becomes available. ” states the report.
Altcoins are not the only ones facing selling pressure
More than $11 billion worth of Bitcoin {{BTC}} will be distributed to creditors of cryptocurrency exchange Gemini's Earn Program and long-defunct cryptocurrency market Mt. Gox, analysts at K33 Research say. Werte Runde warned. Tuesday's report.
read more: Mt Gox’s impending $9 billion payout could weigh on Bitcoin prices, K33 Research warns
“The next few months are shaping up to be a wave of good old-fashioned crypto FUD,” Lunde said, referring to the popular crypto FUD. crypto acronyms Because of fear, anxiety, and doubt.
Amid upcoming supply events, one market participant suggested that FTX repayments could provide some relief.
Arthur Chong, founder and chief investment officer of Defiance Capital, said that approximately $14 billion to $16 billion in U.S. dollars could be paid to creditors, pending bankruptcy court approval. He said there is a possibility that a significant portion of the proceeds will flow back into the virtual currency market.
“At least $3 billion to $5 billion of crypto-native liquidity is expected to be injected into the market,” Cheong said in the article. X Post Wednesday.
Ugly behavior in crypto on Wednesday
At late US time, the entire CoinDesk 20 index was down 3.4% over the past 24 hours, with Bitcoin down 2.5% to $61,500 and Ether {{ETH}} down 3.6%. Bitcoin Cash {{BCH}} and Solana {{SOL}} were the worst performers in the index, each declining more than 7%.
