% 0.16
BTC Dominance:
% 0.09
Market Cap:
$2.37 T
% 0.16
Fear & Greed:
60 / 100
$ 64.967
BTC Dominance:
% 54.2
Market Cap:
$2.37 T

Billionaire CEO Reveals Event That Could Inject Billions Into Crypto Market

Crypto Market, Crypto, Bull

According to a crypto company CEO, an upcoming event could see billions of dollars enter the market.

Coin Bureau CEO Nic Puckrin recently highlighted a largely overlooked potential catalyst in the crypto market. This catalyst involves crypto enthusiasts receiving $14 billion in fiat currency and potentially re-investing it back into crypto.

It’s been nearly two years since the collapse of FTX, and the landscape has changed significantly since then. The primary development is the bankrupt company’s plan to repay 118% of all creditor claims in fiat, a staggering amount of $14.5 billion. This money, according to the analyst, will go to individuals who were already invested in crypto.

While some FTX creditors may choose to hold onto their fiat, Puckrin believes a significant portion will want to reinvest that money back into the markets. This could be particularly beneficial right now as it could help counteract the Mt Gox payments.

When combined with the Gemini crypto payouts, the total crypto sent to creditors reaches $10.6 billion. However, when FTX fiat payouts are included, there will have been a net $3.9 billion cash surplus paid out.

K33 examined the net liquidity impact of various scenarios, including three scenarios where Mt. Gox/Gemini sells and two scenarios where FTX creditors buy. The results range from a net negative of $2.3 billion to a positive of $1.19 billion.

Puckrin suggests that these estimates could be very conservative. He envisions a scenario where at least 50% of the FTX fiat war chest goes back into BTC. This would result in at least $1.9 billion in net positive liquidity even if Gox/Gemini buyers sell off 50% of their holdings. In the best-case scenario, this could lead to over $4 billion in net buying.

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However, Puckrin also points out that timing is crucial. With Gemini targeting June and Mt. Gox’s final payment date in October, FTX creditors are gearing up for late Q4 payments. Therefore, it may take some time for the net liquidity to be affected by the buying of FTX creditor investors.

Despite this, Puckrin remains optimistic, stating, “It’s nice to see that there might be some forces counteracting the selling pressure.”

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