Key Points:

• FTX is to return $12 billion to creditors, with early payouts expected by December, providing potential liquidity for Bitcoin and other digital assets.
• FTX repayments might boost crypto markets, but gradual distribution could limit immediate impact, stretching out through 2025.

FTX creditors payout may get $12 billion, boosting crypto markets. Galaxy expects early payouts to provide liquidity to traders, aiding Bitcoin’s price.

FTX Creditors Payout Could Boost Crypto Markets by Year-End 2

FTX Creditors Payout Set to Boost Bitcoin Liquidity

It positions FTX to return $12.6 billion to creditors, with some early distributions anticipated by December 2024. That liquidity could find its way into Bitcoin and other digital assets, analysts say, giving the flagging market much-needed support at last. It could even be the spark that gets crypto market activity going again, according to Bloomberg.

Read more: FTX Bankruptcy Plan Guarantees Full Repayment with Interest

Delayed Repayments Pose Limited Impact on Crypto Market

While creditors in FTX are likely to get payouts, this impact might be gradual in the larger crypto market. Larger creditors might see their repayments stretched over the next couple of years-a fact that would soften the expected boost to the market. Yet for experts, this is a long-term liquidity event that may favor traders over time.