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Bitcoin price continues to struggle this week. It has gone nowhere in the past two months as many investors remained in the sidelines and the 2024 gains took a breather. BTC price may have a crucial catalyst as the FTX repayments kick-off. So, how high will the coin get when these distributions start?
FTX Repayments May Boost Bitcoin Price
Bitcoin price has reacted mildly to some notable catalysts in the past few months. For example, it has not made moves after Donald Trump unveiled tariffs, which may have a big impact on the global economy.
BTC price has also wavered after the Federal Reserve pointed to higher interest rates for longer and after the US released strong consumer inflation data.
Now, crypto traders are focusing on the upcoming FTX repayments, which will start on Tuesday to be a catalyst. Data show that the FTX Estate will distribute over $11 billion to the creditors and past customers.
The FTX repayments ends a dark chapter for a company that dominated the crypto industry a few years ago. Some cryptocurrency traders believe that these distributions will boost Bitcoin price. One social media user said:
“FTX’s repayment process is a game-changer. With $12 billion on the move, creditors might reinvest in crypto, triggering fresh demand for BTC and altcoins.”
The idea is that many recipients of these funds will move them back to the crypto market. Some will buy Bitcoin directly while others will buy spot BTC ETFs. Other FTX creditors will buy altcoins like Ethereum.
While more liquidity is good, there are odds that the FTX repayments will not move Bitcoin price. For one, it is unclear whether most of these creditors will buy the coin. Also, these distributions have already been priced in by market participants.
Bitcoin Price Analysis: Cup and Handle and Bullish Flag Patterns
The weekly chart suggests that the BTC price will ultimately have a breakout in the coming weeks. That’s because the coin has already completed forming a cup and handle (C&H) pattern that formed between November 2021 and November 2024. This pattern has a rounded bottom and some consolidation at the top and is usually a continuation sign.
Bitcoin has also formed another highly bullish pattern known as a bullish flag. The ongoing consolidation is part of this pattern. The coin has also remained above the 100-week Exponential Moving Average (EMA), signaling that the uptrend is still intact.
BTC Price Targets
The first Bitcoin price forecast is $108,100, the upper side of the bullish flag pattern. A volume-supported move above that level will point to more gains, possibly to $122k. This target was derived from calculating the cup’s depth and then extrapolating it from the upper part of the cup.
The other Bitcoin price target is $90,500. A drop below that level would signal a potential crash to $68,910, the upper side of the cup.
Frequently Asked Questions (FAQs)
FTX distributions should, in theory, boost the BTC price as some of the creditors shift some of that cash back to the crypto market. However, in practice, there is a likelihood that these repayments will not have a big impact on the coin.
The FTX repayments are set to start on February 18 through Kraken and BitGo. The total amount to be paid is about $11 billion.
Bitcoin has formed a bullish flag and a cup-and-handle pattern pointing to more upside in the coming months. It may jump to $122k in this cycle.
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crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
