Bitcoin Faces $120,000 Target Amid FTX Creditor Payouts

Economist and trader Alex Krüger has expressed optimism about Bitcoin's (BTC) near-term prospects, predicting that the cryptocurrency is poised for significant gains in the coming weeks. Krüger, who has a substantial following on the social media platform X, anticipates that Bitcoin could reach $120,000 by June. This bullish outlook is primarily driven by the anticipated distribution of approximately $5 billion to creditors of the defunct crypto exchange FTX at the end of May. Krüger believes that these funds, largely held by major claimants, will re-enter the crypto market, thereby fueling a bullish trend for Bitcoin.

However, Krüger also cautions that the market could turn bearish in early July due to uncertainties surrounding tariff disputes. He notes that the 90-day tariff pause, set to expire on July 9th, could serve as a significant bearish catalyst. Market anxiety over tariffs is likely to escalate in the weeks leading up to this deadline, potentially impacting Bitcoin's price trajectory.

In contrast to Krüger's optimistic view, crypto analyst Justin Bennett presents a more pessimistic outlook. Bennett suggests that Bitcoin could drop below $100,000 after failing to decisively break through its last resistance level at around $110,000. Bennett's analysis indicates that he shorted Bitcoin at $111,269 and is looking to add to his position if the price falls below $106,000, with a target of $96,000 to $97,000.

At the time of writing, Bitcoin is trading at $107,435, down from its recent all-time high of just under $112,000. This price movement reflects the ongoing volatility and uncertainty in the crypto market, influenced by various factors including regulatory developments, market sentiment, and macroeconomic conditions.