FTX Repayment Boost? Crypto Market Eyes $1.6B Liquidity Injection
Crypto Market Awaits Potential Upside from FTX Repayments
The crypto market is closely watching as the estate of the defunct crypto exchange FTX prepares to distribute billions of dollars to creditors. This move is anticipated to inject much-needed liquidity, potentially driving prices higher.
FTX Set to Distribute $1.6 Billion
According to a press release, the FTX Recovery Trust will distribute approximately $1.6 billion to creditors on September 30 as part of the Chapter 11 Plan of Reorganization. This distribution will target holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have met the pre-distribution requirements.
This marks the third repayment by FTX, following prior distributions in February and May. Eligible creditors will receive their funds through Kraken, Bitgo, or Payoneer. The Recovery Trust will announce subsequent record and payment dates in the future.
The $1.6 billion influx could provide a significant boost to crypto prices, especially as the market navigates a sideways trading pattern, even after the Fed's recent rate cut.
Creditor Breakdown
“FTX Creditor Champion” Sunil shared details on X, stating that:
- Claims exceeding $50,000 will receive 6%.
- U.S. claims will receive 40%.
- Claims below $50,000 will receive 120%.
This is in addition to the $1.9 billion from the disputed reserve.
FTX will pay $1.6bn on 30th Sept to
Claims >$50k
6%: (78% Total so far)US Claims
40% (95% Total so far)Claims <$50k
120%This is in addition to the $1.9bn from the disputed reserve
— Sunil (FTX Creditor Champion) (@sunil_trades) September 19, 2025
Market Experiences Slight Downturn
Despite the upcoming FTX repayment, the crypto market has experienced a slight downturn. TradingView data indicates that the total crypto market capitalization has decreased by nearly 2% in the last 24 hours, falling below the $4 trillion threshold.
Bitcoin is also experiencing a pullback, trading around $15,300 and facing the possibility of dropping below the $15,000 mark.
Crypto analyst Titan of Crypto noted that Bitcoin needs to reclaim the Tenkan level around $15,500, which is currently acting as resistance.
#Bitcoin Weekly Outlook 🔍
Just like last week, #BTC still needs to reclaim the Tenkan 🔴, which is currently acting as resistance on the weekly timeframe. pic.twitter.com/wrrGVe8KnU
— Titan of Crypto (@Washigorira) September 19, 2025
Bitcoin also faces resistance on the daily timeframe, remaining below the bearish fair value gap around $17,000. A daily close above this level could signal further upside.