K33: FTX's cash repayment may trigger buying demand, bullish on the year-end market of the cryptocurrency market

According to a report by The Block, research firm K33 Research believes that the repayment plan for the collapsed cryptocurrency exchange FTX may be viewed as a bullish factor, as cash repayments could trigger demand for buying coins by the recipients, further offsetting the selling pressure from the Mt. Gox and Gemini physical repayments.

FTX Cash Repayment May Trigger Buying Demand

According to a report by K33 on Tuesday, the repayment plan of the collapsed cryptocurrency exchange FTX could have a bullish impact on the cryptocurrency market, which is completely different from the physical repayments to Mt. Gox and Gemini creditors.

While Mt. Gox and Gemini repay creditors in physical assets, FTX sells assets to pay creditors in cash. Considering the repayment amounts of these three,

the buying demand from cash recipients may offset the selling pressure from physical repayments.

Repayment Deadlines Affect Coin Prices, Crypto Market May Perform Better by Year-End

K33 pointed out that repayment timelines may still impact the cryptocurrency market. Gemini is expected to repay $1.7 billion in debt in early June, while Mt. Gox is set to repay $8.9 billion in debt by the final deadline in October 2024.

The FTX bankruptcy restructuring team submitted a revised reorganization plan to the Delaware Bankruptcy Court on 5/7, which plans to distribute FTX's bankruptcy assets to global customers and creditors. The total value of assets currently available for distribution by FTX is estimated to be between $14.5 billion and $16.3 billion. If approved by the bankruptcy court, 98% of FTX creditors will receive 118% of their allowed claims within 60 days of the plan taking effect.

FTX creditors can also claim 9% interest, and creditors with claims under $50,000 will receive 118% of their allowed claims within 60 days.

K33 noted that while there is uncertainty about when or if the plan will be approved, it is likely to be repaid by the end of the fourth quarter of 2024.

The differences in repayment timelines once again indicate slow growth in the market in the summer, with a steady performance expected by the end of this year.