Keep an Eye on Bitcoins Next Move Key Dates for FTXs 16 Billion Payout
Bitcoin is currently experiencing a bear market, but there is a possibility of a bullish turnaround if it manages to stay above the $38,000 mark and if the Federal Reserve decides to cut rates later this year. Additionally, a significant increase in stablecoin liquidity in the fourth quarter of 2024 could have a major positive impact on the crypto market. If this happens, Bitcoin could potentially reach a value of over $120,000, while Ethereum could surpass $12,000.
Bitcoin’s recent decline has led to concerns about its future, with the fear and greed index currently sitting at a low of 28. However, there is still hope for a market recovery, especially if Bitcoin manages to hold above the $38,000 level.
The recent breakdown in Bitcoin’s price suggests that lower price targets may be possible. However, in order for the cryptocurrency to return to its previous consolidation range, it would need to close back within that range on a weekly basis, which seems unlikely based on the current situation. Nevertheless, there is a possibility of a bullish divergence if the weekly RSI reaches the lows of August/September 2022 and another red weekly candle appears.
Bitcoin has also seen a consistent closure below the 200-day Moving Average (MA) for the past five days, something that hasn’t happened since October of the previous year. If Bitcoin manages to reclaim the 200-day MA as a support level, it could increase the chances of a bullish recovery in the fourth quarter.
The recent bearish pressure on Bitcoin can be attributed to factors such as increased selling by whales, the German government offloading over $85 million in Bitcoin, low demand for US-based Bitcoin ETFs, and miners selling BTC to cover costs.
Investors are now looking to the US Federal Reserve for economic guidance, with expectations of a rate cut later this year and the potential impact of the general election on the crypto market.
A major event that could significantly impact the crypto market is the distribution of over $16 billion in stablecoin liquidity by FTX. This liquidity boost is a result of FTX’s plan to reimburse its creditors, and it could potentially lead to substantial market growth in late 2024 and early 2025.
Key dates to watch are August 16, when FTX customers will vote on the distribution plan, and October 7, when Judge Dorsey will decide on its approval. If approved, the reimbursement process will begin in the fourth quarter of 2024 and continue into the first quarter of 2025.
This influx of funds coincides with other positive market factors, such as potential rate cuts, new accounting rules, and the results of the US election. Ash Crypto believes that this $16 billion injection will act as a powerful catalyst for higher crypto prices. Bitcoin could potentially exceed $120,000, Ethereum could climb above $12,000, and many altcoins could experience significant growth. Now is the time for investors to stay informed and prepared for the potential market surge.