What Will Propel Crypto Market Rally in 2024-2025?
The post What Will Propel Crypto Market Rally in 2024-2025? appeared first on Coinpedia Fintech News
In a downtrend, Crypto analyst Wise Advise in his X post has highlighted a significant event that he believes will be the most substantial bullish catalyst for the crypto market in 2024-25. While discussions often center around potential impacts from Trump’s victory in presidential elections, highly anticipated Federal Reserve rate cuts, and new FASB regulations, he argues that a different factor will positively influence crypto during this cycle.
While Mt Gox has turned the market upside down analyst’s bullish theory on FTX fund distribution will be a interesting call for investors who are restless with the prolonged crypto downturn.
Here’s what you need to know about this intriguing situation!
FTX Fund Distribution
Wise Advice identified the key event as FTX’s planned distribution of over $16 billion to its creditors, which is expected to take place between Q4 2024 and Q1 2025. He notes that most claims on FTX assets were made when the market was at its lows. However, stablecoins like USDC and USDT will be distributed at their full 1:1 value.
Impact on the Market
Given the current bullish trend in the market, the redistribution of such a substantial amount of money is likely to have a positive impact. Wise Advice points out that most of the FTX creditors are already involved in the crypto space, which means that this $16 billion is likely to be reinvested into the market. This influx of liquidity could drive Bitcoin and other altcoins to new highs. Notably, Dogecoin (DOGE) is highlighted as a coin that could benefit significantly from this redistribution.
Comparisons to Other Events
Moreover, the analyst minimizes the potential impacts of other events that are often cited as significant, such as the Mt. Gox fund distributions and government crypto sales. He refers to these events as mere “noise” compared to the impending distribution from FTX, which he believes will be the real game-changer for the crypto market.
What Next?
Despite the current downturn, the possibility of a cycle top for the 2024 crypto bull run cannot be entirely dismissed. Historical patterns from previous major bull cycles suggest that the rally is far from over. Some analysts argue that the 2024 cycle mirrors the 2017 cycle, which saw several 25-30 percent pullbacks before peaking at around $20,000.
Read Also: Crypto News Today: House Set to Challenge Biden’s Veto on SAB 121
The crypto market’s future is uncertain. What are your predictions for the impact of this $16 billion distribution?
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