Prominent trader KOL Ash Crypto expressed his optimism in a recent post, stating that he believes the repayment by FTX 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.
In recent times, Bitcoin (BTC) has been experiencing continuous declines. This morning, it once again plunged close to $54,260, almost wiping out the rebound from the past two weekends. Mt. Gox’s repayment launch and suspicions of German and US governments cashing out large amounts of Bitcoin and transferring them to exchanges are considered the main reasons for the recent selling pressure.
Andrew Kang, co-founder of Mechanism Capital, estimates that Bitcoin could potentially fall to a minimum of $40,000 and would need to go through several months of oscillation and downward trends (recovery period) before a possible rebound.
However, against the backdrop of negative market expectations, a well-known trader has pointed out a positive factor that could drive the cryptocurrency market to new highs, which is the repayment by FTX.
FTX’s repayment could inject $16 billion liquidity into the cryptocurrency market
Ash Crypto, a cryptocurrency trader with nearly 1.17 million followers on Twitter, stated in a tweet on the 7th that FTX is expected to end the voting for its restructuring plan by creditors on August 16th, and a judge will decide whether to approve the repayment plan on October 7th.
If the court ultimately approves, FTX will repay its creditors within two months, with the estimated repayment period possibly occurring in the fourth quarter of 2024 to the first quarter of 2025. Ash Crypto believes that this will be a perfect combination with interest rate cuts, the implementation of US FASB accounting rules, and the US presidential election, becoming a key catalyst for an upward trend in the cryptocurrency market. He predicts that Bitcoin will reach $120,000 as a result.
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