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$1.9 billion in FTX repayments could soon enter the crypto market, providing a bullish outlook for crypto prices. This follows an announcement by the estate of the defunct exchange regarding the resolution of undisputed claims, clearing the way for the next repayments.
The Market Awaits Next FTX Payouts Of $1.9 Billion
In a press release, FTX announced that it has received authority from the Bankruptcy Court to reduce the disputed claims reserve by $1.9 billion, providing a green light for the next repayments. The defunct exchange will release this cash for distribution to holders of allowed claims. This is bullish for the crypto market as these holders could inject this cash into crypto assets.
According to the press release, the next distribution is expected to commence on or about September 30 later this year. Before then, the record date for the next distribution will be August 15 for holders of allowed claims. It is worth noting that this marks the third FTX repayment that the crypto market has witnessed.
The first FTX repayment of $1.2 billion was in February earlier this year, while the second was in May when the Bankruptcy Estate distributed $5 billion. This next distribution will be made by FTX’s Distribution Service Providers, including BitGo, Kraken, and Payoneer. Popular FTX creditor Sunil Kavuri also commented on this development.
In an X post, Sunil stated that the distribution will be made to FTX claims that are above $50,000. Meanwhile, repayments will be made to claims below $50,000 that have been allowed since the record date. Class 6 General Unsecured Claims will also receive a portion of the $1.9 billion repayment.
May Payout Coincides With Crypto Prices Rally
Notably, the May FTX repayment coincided with the crypto market rally that month, when the Bitcoin price reached a new all-time high (ATH), while altcoins also hit new local highs during that period. As such, this next payout could again spark another rally for the BTC and other digital assets.
Moreover, the September repayment also coincides with when analysts like Titan of Crypto predict that Bitcoin could reach a new ATH. In an X post, Titan of Crypto shared an analysis that showed BTC could hit the $144,000 target in September. In the meantime, he suggested that a retest of the inverse Head-and-Shoulders pattern could happen before then.
Meanwhile, the September FTX repayment would also coincide with the period when the Federal Reserve is meant to make its first rate cut this year, another bullish factor for the crypto market. As such, these developments could together spark a parabolic uptrend for the Bitcoin price and altcoins. Standard Chartered and Bitwise have both predicted that BTC could reach as high as $200,000 by the end of the year.
Featured image from Adobe Stock, chart from Tradingview.com
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Ready to dive into the world of offensive security? This course gives you the Black Hat hacker’s perspective, teaching you attack techniques to defend against malicious activity. Learn to hack Android and Windows systems, create undetectable malware and ransomware, and even master spoofing techniques. Start your first hack in just one hour!
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