After three days of a slow grind downwards, Bitcoin (COIN:BTCUSD) perked up a bit this morning, but the optimism didn’t last. Today’s trading session shows the price going back and forth as if it just can’t make its mind up where it wants to be.
BTC just can’t seem to break through the $100,000 resistance level, having been consolidating below it for the past few months.
Today FTX creditor payouts are set to begin after more than two years of bankruptcy. This is the first batch of payments, and it’s targeting smaller creditors, with claims of $50,000 or less. They will receive full repayment plus an additional 9% interest accrued since November 2022. The total payouts to these creditors is approximately $1.2 billion. Larger creditors start getting their payouts in 2025 Q2.
If they receive their payouts in crypto, and decide to sell, then it could shift the price downwards. However, it is expected that most payouts will be in cash, and if investors then reinvest in the into Bitcoin, it could trigger a price rally.
On the other hand, if a significant portion flows into altcoins then Bitcoin may not benefit from the extra investment.
We’ll just have to wait and see.