The Fate of Cryptocurrencies Will Be Shaped by FTX Repayments and Interest Decision!

Cryptocurrency company FalconX spoke about FTX's repayments and the FED's interest rate cut.

The report recently presented by FalconX included FTX repayments and the possible impact of the FED interest rate decision. Reminding that the FTX front will begin to repay $16.3 billion to its creditors in the coming months, analysts emphasized that this situation may cause serious sales pressure.

Even the German government managed to shake the market with only 3 billion dollars worth of Bitcoin in the last week. Analysts said that investors would be encouraged if the FED preferred to cut interest rates in response to this FED effect:

The prospect of some of the $16.3 billion FTX redemption turning into buying pressure in the coming months, an increasingly positive stance on crypto on both sides of the aisle, and the potential for an interest rate cut in September that will benefit risk assets more generally should encourage the middle.

New investors and liquidity change things

Stating that the interest rate cut will renew confidence in risk assets, the FalconX report wrote that spot Bitcoin ETF flows can also provide strong liquidity.

It was noted that these two factors could act as a buffer against FTX's sell-off:

For example, perhaps more flows will go to exchanges than to professional liquidity providers, or perhaps a more diversified investor base will accommodate selling over time, strengthening the buy side.

Stay tuned for new information