Crypto News – Unraveling the Bullish Overhang Effect: FTX Repayments and Crypto Markets

Crypto News – Bullish Overhang Effect: Exploring the Relationship Between FTX Repayments and Crypto Market Trends

Crypto News – A minimum of $14.5 billion in cash will be given by FTX to users who lost money as a result of the exchange going bankrupt. According to May 14 research from K33 analysts Vetle Lunde and Anders Hesleth, these dividends would probably result in a “bullish overhang” for the market. The analysts contrasted the scheduled cash repayments from FTX with the planned crypto-based repayments from Mt. Gox and Gemini, which are “currently valued at $10.6 billion.” 

Not all creditor repayments are bearish.

The analysts

Lunde and Hesleth came to the conclusion that the selling pressure from in-kind recipients would be offset by the buying pressure from cash users.

According to Analysts, Repayment Pressures are Impossible to Predict in Advance

The experts stated that the timing of the repayments might play a crucial role in forecasting their impact on the market, despite the fact that it would be “impossible” to estimate the net purchasing or selling pressure from these repayments in advance. Early June is when Gemini is projected to refund $1.7 billion, while October 2024 is when Mt. Gox is expected to reimburse $8.9 billion.

The analysts stated that most FTX creditors were anticipating repayments to be delivered later this year, although they did caution that there was still some uncertainty surrounding the anticipated repayment date because the court had not yet approved the FTX repayment arrangement.

The different timing of these repayments represents yet another indication of a slow summer in the market and a solid end to the year.

The analysts

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