Reuters: Crypto exchange FTX ordered to pay $12.7 billion to customers
This is on top of the $11B Caroline Ellison was forced to surrender recently.
Which of course she doesn't have but that's another story.
FTX has said that its customers will receive 100% recovery on their claims against the company, based on the value of their accounts at the time it filed for bankruptcy.
Ah well that's the rub isn't it.
As we all remember fondly it was the FTX collapse itself that marked the beginning of the end of the 2022 bear market in November. Right when it seemed like Bitcoin had a strong handle on the $20k previous-high support-line the FTX collapse brought it to the ultimate lows of $16k, with many calling for prices as low as $8k and the complete liquidation of Saylor's Microstrategy. Luckily that isn't a future we had to live in, as always tends to be the case at the bottom of the bear when everyone is losing their minds and selling the bottom.
Keeping in mind that the FTX bankruptcy was in fact the BOTTOM of the market it makes perfect sense that now that multiple years have passed and the value of those assets are multiples higher that they would be able to pay back creditors in USD terms as measured by the bottom of the bear. Speculators on social media have gone onto question if FTX was ever really insolvent to begin with in the light of this development, and there is a bit of valid argument that implies the company may have been strong-armed into their current position by higher powers and/or conservative lawyering.
Here's what I don't get:
There's now speculation as to what's going to happen in the market once these unsecured FTX creditors get their money back. For example, we all know damn well FTX didn't have ANY Bitcoin on the books and they were shorting BTC to the maximum. So unless they bought BTC after they went bankrupt... which they didn't... every user that owned BTC on FTX isn't going to be paid in BTC. So this "begs the question" in terms of pump and dumps. When MT GOX creditors got paid everyone worried they would dump... but when FTX creditors get paid they literally can't dump because there is no token to dump in the first place. There's also the question of whether "shitcoiners" have learned their lesson and will buy BTC instead of whatever they were holding when FTX went insolvent.
FTX’s $16 Billion Payout Set to Revive Crypto Market
One user disclosed that they had withdrawn most of their assets prior to FTX’s collapse, leaving only a small sum in Chainlink tokens. Significantly, they mentioned receiving a tax-related email, signaling that the distribution process is nearly complete. The user is now set to receive $289, which they plan to reinvest in Bitcoin, calling it “free money.”
Xremlin highlighted the distinct nature of this payout, noting that it restores money to those already involved in crypto. Many recipients are likely to reinvest, particularly in well-known cryptocurrencies like Bitcoin and Solana, which may drive substantial market demand.
expected to commence within two weeks
Yeah so obviously this is all speculation but it would very much seem as though this money is going to come pouring right back into crypto and potentially fuel a fresh rally and even a newfound alt market. There have been so many signals lately that we are headed into wildly bullish territory but the prices do not reflect this sentiment. This makes sense as we say goodbye to Q3, the worst quarter of the year, and say hello to Q4, the best quarter of the year. Prepare accordingly.
How's the TA lookin?
Whelp we are breaking above the 200 day moving average which is definitively bullish. We are also still printing the inverted head and shoulders that implies we'll be testing $72k resistance before October 12th. I've started day trading again for the first time since April and I'm trying to get an entry point of $61500. Thus far it feels like there's a good chance I'll remain sidelined on that front. Oh well these things happen.
Golden cross imminent
The default moving averages of 25/100 are now fully on a collision course for an epic golden cross at the perfect time. For the next 8 days the 25 day moving average will be dropping off price points of $58k and lower while being replaced at the current price point of $63k-$65k. We can see the light-blue 25 day line bending upwards at breakneck speeds into the slower moving 100-day that's still trading flat as a board. It looks like we could get our bullish cross in less than a week with this type of momentum.
The real alt market starts at $100k+
$100k has been a mythical price point that has seemed unattainable for so long, but it looks like we are about to blow past it within a few months time. As crazy as it sounds... Bitcoin going x2 from here is a $130k price point. How crazy is that? x2 is nothing in crypto and pressure has been building for 6 months within the current downtrend consolidation. Laser eyes are finally going to get their day in the sun.
Conclusion
It's crazy how MT GOX creditors had to wait a decade to get paid back and those payments were made in BTC, but FTX somehow regained solvency and is paying back their creditors in two years with zero BTC in their coffers. How wild is that?
We are about to blow past the $72k resistance barrier as we launch ourselves into the bull market year of 2025, and let's be honest we totally deserve it, as the crab market we just endured was nothing short of hellish purgatory. Congratulations boys and girls: we finally made it. Uptober is Uptobering. Pack up those moonbags.