FTX Dynamic Tracking: Can the 12 billion repayment ignite the fire of Bitcoin's rise?
The bankrupt crypto giant FTX is brewing a drama of creditor repayment of more than 12 billion US dollars. As soon as the news came out, the cryptocurrency market seemed to smell the breath of change. Although FTX's actual debt is about 11.2 billion US dollars, this number will rise after adding interest. Crypto enthusiasts are looking forward to it, hoping that some funds can flow back to the digital asset field.
Can the first 1.1 billion US dollars of debt repayment inject new vitality into the crypto market?
Alex Thorn of Galaxy Digital believes that this fund may bring a long-awaited boost to Bitcoin. Traders are eager for new momentum in the market, although the top 100 tokens have fallen by 3% recently, and October is usually the peak season for cryptocurrencies. Does this indicate that the rebound momentum is facing challenges? Some experts hold this view.
Benjamin Celermajer of Magnet Capital pointed out that the flow of these funds may cause market volatility because they will flow into the hands of well-known traders and become a potential price catalyst.
FTX still has a long way to go to repay its debt
Debt repayment is not something that can be done overnight, and FTX needs to set up a trust and hire a professional company to manage it. Small creditors may receive funds in December, but large debt repayments may extend into next year, and some claims may even take three years to resolve.
K33 Research predicts that $2.4 billion of this may return to the crypto market, but the impact may be slow to show because the debt repayment will last for a year.
Market Outlook
Bitcoin is currently holding steady at the $62,000 mark. Despite the recent market volatility, traders are still looking forward to the funds to help Bitcoin. Earlier this year, demand for Bitcoin exchange-traded funds helped its price climb to $74,000. If some of FTX's funds return to the market, it may stimulate new interest and push up prices.
In the coming months, let us watch how FTX's debt repayment affects the market. Can this huge debt repayment bring new life to the stagnant crypto market? Only time will tell.
