FTX Repayments in Cash Could Boost Crypto Prices, Says K33 Research

IconCNT16 May, 2024

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FTX Repayments in Cash Could Boost Crypto Prices, Says K33 Research

FTX's repayment of billions in cash to creditors could provide a "bullish overhang" for crypto prices, according to a new report from K33 Research. The report highlights that unlike Mt. Gox and Gemini, FTX plans to return around $14.5 billion in cash rather than crypto. Unlike previous major crypto exchange collapses, FTX's creditor redemptions may offset sell-side pressure from redemptions of creditors receiving crypto assets in the form of cash. While precise magnitudes of buying and selling pressures are hard to estimate, potential timing of repayment distribution can be approximated. Many creditors anticipate receiving funds from FTX later this year. Previously, K33 Research estimated that Mt. Gox and Gemini have a combined $10.5 billion of potential crypto sell-side pressure overhanging the market. Previously on 15 May: Cryptocurrency exchange FTX's repayment of billions of dollars in cash to creditors could provide a "bullish overhang" for crypto prices, according to a new report from K33 Research.

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