Bitcoin Faces Bearish Pressure as FTX Begins Repayments for Claims Below $50K
Bitcoin Struggles Amid FTX Repayment Surge: What’s Next for BTC?
The Bitcoin market is feeling the pressure as FTX begins its much-awaited repayment process, injecting significant liquidity into the market. While many hoped that these repayments would spark renewed buying momentum for Bitcoin (BTC), the opposite is happening. Bitcoin’s price is struggling to gain ground, and analysts are questioning whether the repayment phase will indeed provide the bullish boost they initially anticipated.
FTX Starts $1.2 Billion Repayment, Impact on Bitcoin’s Price
On February 18, 2025, FTX began distributing funds to its creditors, signaling a move toward recovery after the exchange’s dramatic collapse. The first phase of repayments focuses on those who had lost up to $50,000 in FTX’s bankruptcy, with these creditors set to receive 100% of their claims, along with 9% annual interest calculated from the day of FTX’s bankruptcy—November 11, 2022.
The total amount in this first round of repayments is $1.2 billion, with $800 million already distributed to approximately 162,000 accounts. This covers about 35% of the 460,000 total accounts eligible for claims. The funds are split between the original creditors and secondary parties who have purchased the debts, ensuring that both the initial victims and those who assumed the risk by acquiring debts benefit from the repayments.
In terms of the distribution process, half of the repayments have gone directly to the original account holders, while the other half has been allocated to those who now own the debts. This distribution method highlights the complexity of the FTX collapse and the broad range of individuals involved in the recovery process.
The Market Impact: Will FTX Repayments Boost Bitcoin?
As the repayment phase unfolds, it’s expected that some of the recipients may reinvest their funds in cryptocurrencies, potentially buying Bitcoin or Bitcoin ETFs, or even looking at altcoins like Ethereum. However, the Bitcoin price has failed to show the anticipated buying momentum, and this lack of demand raises questions about the impact of the repayments.
Despite the initial optimism, Bitcoin’s price has been under significant pressure, with the price dropping from a recent high of $96,730 to around $94,000. This decline shows that the influx of funds from FTX creditors may not be enough to spark a major rally. The question remains—will Bitcoin be able to capitalize on the liquidity boost, or will the bearish pressure persist?
What to Expect Next for Bitcoin’s Price
While the FTX repayments provide some liquidity to the market, the overall impact on Bitcoin’s price is still unclear. Experts suggest that some of the returned funds may indeed flow back into cryptocurrencies, potentially improving liquidity. However, since the repayments primarily target smaller claims, it’s unlikely to drastically impact the Bitcoin price in the short term.
Moreover, many recipients may choose to reinvest in safer assets instead of re-entering a volatile market like Bitcoin. This could further dampen any positive effects Bitcoin might have hoped to gain from the repayment process.
At present, Bitcoin is showing signs of weakness. The Relative Strength Index (RSI) has dipped into the selling zone at 31, indicating that Bitcoin may continue its downward trend in the short term.
Bitcoin’s current target is to hold around the $92,000 level. If the price rebounds above this zone, Bitcoin could consolidate around $95,000. However, if it fails to maintain this support, we could see Bitcoin falling further toward the $89,000 mark, signaling more bearish pressure ahead.
Conclusion: Bitcoin’s Market Struggles Amid FTX Repayments
The FTX repayment process is creating some turbulence in the Bitcoin market, with the influx of funds not leading to the buying momentum many had hoped for. While some experts speculate that the repayments could bring liquidity into the cryptocurrency market, the Bitcoin price has shown signs of bearish pressure, making it unclear whether the market will see a sustained rebound.
As Bitcoin struggles to regain momentum, traders and investors will need to closely monitor the $92,000 region for signs of a reversal. With the market in a state of flux, the coming days will be crucial in determining Bitcoin’s next move in the wake of FTX’s repayment phase.
Stay tuned for updates as the situation evolves, and keep an eye on how the cryptocurrency market responds to this significant liquidity injection.
