Following its 2023 crash, FTX has had its repayment plan approved, with one analyst suggesting the move could lead to $2.4 billion entering the crypto market in the fourth quarter of this year. Indeed, the plan is expected to have a notable impact on the digital assets sector. Specifically, generating significant funds to re-enter the market this year.
FTX’s reorganization plan has been long awaited by the industry. On Monday, U.S. District Judge John Dorsey approved the estate of the now-defunct cryptocurrency exchange to follow through on its repayment plan. In addition, this plan will result in the redistribution of $16 billion in recovered assets to creditors.
Also Read: FTX Wallet Unlocks Millions: Is a Solana Sale Imminent?
FTX Repayment Plan Could Be Massive for Crypto, Analyst Suggests
The fall of FTX remains one of the pivotal moments in crypto. He saw the plummeting legacy of one of the dominant force brands the industry had relied on. Additionally, it eroded the trust that many had developed in the cryptocurrency industry. However, a lot has changed in a year, as the market seems bigger than ever.
IN 2024, two crypto-based ETFs have been approved. Additionally, Bitcoin hit an all-time high price of $73,000 in March. All this has meant an important place that the crypto leader has secured within a growing sector. According to one analyst, it couldn’t have come at a better time.
With the official approval of the FTX repayment plan, one analyst predicted that it could allow over $2.4 billion in funds to enter the crypto market in the fourth quarter. Indeed, analysts at K33 suggested that this move could be huge for BTC as it enters the final month of the year.
Also Read: FTX and Alameda Research to Pay $12.7 Billion in CFTC Settlement
The plan states that credits with approved applications for less than $50,000 will begin to be repaid in 60 days. Therefore, repayments to creditors are expected to occur at the end of the fourth quarter of 2024. Furthermore, larger claims are expected to take much longer to settle. A resolution to these claims is unlikely to come before mid-2025.
Analysts say $3.9 billion in debt was purchased by credit funds. It is therefore unlikely that they will re-enter the market. However, there is still a significant number of potential funds that could be injected into cryptocurrencies. This specific figure exceeds the aforementioned total of $2.4 billion.
