Renowned trader KOL Ash Crypto stated in a recent post that he is optimistic about the FTX repayment, which will inject liquidity of $16 billion stablecoins into the cryptocurrency market. He predicts that Bitcoin will reach $120,000 and Ethereum will surpass $12,000.
The recent decline of Bitcoin (BTC) continued as it fell to nearly $54,260 this morning, erasing almost all of the rebound from the past two weekends. The market attributes the recent selling pressure to the restart of Mt. Gox repayment and suspicions of German and US governments cashing out large amounts of Bitcoin and transferring them to exchanges.
Andrew Kang, co-founder of Mechanism Capital, estimates that Bitcoin could possibly drop to a minimum of $40,000 and will need several months of oscillation or downward trend (recovery period) before it can rebound.
However, amidst the market filled with negative expectations, a prominent trader mentioned that he has observed a bullish factor that could drive the cryptocurrency market to new highs, which is the FTX repayment.
FTX repayment could inject $16 billion of liquidity into the crypto market
Cryptocurrency trader Ash Crypto, who has nearly 1.17 million followers on Twitter, tweeted yesterday (7th) that FTX repayment is expected to inject liquidity of $16 billion into the crypto market.
Ash Crypto explained that FTX is expected to conclude the vote of the creditors on the restructuring plan on August 16th, and the judge will decide whether to approve the repayment plan on October 7th. If the court ultimately approves, FTX will repay the creditors within two months. The estimated repayment time is likely to occur in the fourth quarter of 2024 or the first quarter of 2025. He believes that this will be a perfect match with other bullish factors such as interest rate cuts, the implementation of US FASB accounting rules, and the US presidential election, becoming a key catalyst for an upward movement in the cryptocurrency market. He predicts that Bitcoin will reach $120,000 as a result.
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