Analysts at K33 Research say the planned cash repayment to FTX creditors could trigger a wave of bullish “buying pressure” in the crypto market.
FTX plans to pay out at least $14.5 billion in cash to users who lost money in the exchange's bankruptcy. These payments are likely to create a “bullish overhang” in the market, K33 analysts Vettle Runde and Anders Hessle said in a May 14 note.
“Not all creditor repayments are bearish,” the analysts said, contrasting FTX's cash repayment schedule with crypto-based repayments from Mt.Gox and Gemini, with the latter The combined value of these two items is “currently equivalent to $10.6 billion.''
Runde and Jesles concluded that buying pressure from cash recipients would neutralize selling pressure from physical recipients.
Analysts note that it is “impossible” to determine in advance the net buying or selling pressure from such repayments, and the timing of repayments could be a key factor in predicting the impact on the market. He said there is.
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Gemini's $1.7 billion repayment is scheduled for early June, while Mt Gox's $8.9 billion is scheduled to be repaid by an October 2024 deadline.
Analysts noted that there is still uncertainty about the expected repayment date as the court has not yet approved the FTX repayment proposal, but most FTX creditors expect repayment to occur in the second half of this year. He said that
“The difference in the timing of these repayments represents another sign of a slow summer end and solid year end for the market.”
On May 8, FTX may repay up to $16.3 billion to creditors, with creditors with claims of less than $50,000 receiving up to 118% recovery using November 2022 cryptocurrency prices. announced that it would be subject to
Some industry experts expressed dissatisfaction with the proposal, saying not all creditors would receive repayments at par with current market prices.
BitGo CEO Mike Belshe said in a May 8 post on Stop pretending you're getting your money back.”
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