Story Highlights
FTX’s $16 billion reimbursement to crypto traders could trigger significant buying pressure.
On October 7, the Delaware Chapter 11 ruling was essential to repaying the debt.
Reinvesting FTX funds into Bitcoin and altcoins could drive market growth.
Next week marks a big moment for the cryptocurrency community as bankrupt derivatives exchange FTX begins paying down its debts. Analysts expect huge buying pressure on both Bitcoin and altcoins as $16 billion flows into crypto traders’ accounts.
For those who missed out on the lows of the August market crash, this could be a golden opportunity to invest in cryptocurrencies.
$16 billion FTX repayment is about to begin
The upcoming repayment is a result of the FTX collapse, where many traders suffered significant losses due to the fraudulent activities of former CEO Sam Bankman-Fried. In response, the company revised its restructuring plan, opening the door to a possible full repayment.
These much-anticipated repayments are expected to take place after one of three “omnibus hearings” to be held in 2024. These hearings, scheduled for October 22, November 20, and December 12, will help organize the various claimants to make the repayments.
If the Delaware government approves the Chapter 11 plan on October 7, then compensation for victims could be paid out by the end of the year. However, for FTX customers who have not yet submitted their claims, it will be too late! The deadline to submit documents is September 29, 2023.
Cryptocurrency set to see $16 billion inflow
As excitement builds, many believe this could lead to the biggest bull run ever. Because a large portion of the $16 billion will flow back into the market. This payout is unique because it returns funds to individuals who have already invested in cryptocurrencies.
However, many recipients are likely to reinvest their funds, especially in popular cryptocurrencies like Bitcoin and Solana. This reinvestment could drive growth as we head into the end of the year.
