Many people say that FTX's compensation is a positive for the market, believing that these funds will likely flow back. This statement is not wrong, but the initiation of compensation is likely negative for the market. The reason is simple: where does the compensation fund come from? It requires selling the frozen FTX assets to convert them into USD to compensate the victims. A large number of sell orders signifies what this means, no further explanation needed. Therefore, in the early stages, it is definitely negative. The higher the compensation funds, the greater the negative impact. The extent to which funds can flow back later depends on whether these former victims still have confidence in the cryptocurrency market.

This is just my personal opinion and not investment advice.