FTX Repayments Spark Bitcoin's Bearish Surge

Bitcoin's bearish pressure has intensified as FTX begins repayments for claims below $50,000, signaling a potential shift in market dynamics. The repayment process, which started on February 18, has injected liquidity into the market, but it has also put downward pressure on Bitcoin's price chart. Analysts had anticipated that the repayments would boost buying momentum, but Bitcoin has struggled to gain traction.

FTX has initiated the repayment process, distributing $1.2 billion in the first phase. Around $800 million has already been distributed to approximately 162,000 accounts, covering 35% of the eligible accounts. The repayment plan offers 100% of the claimed amount plus 9% interest annually, calculated from November 11, 2022, when FTX went bankrupt. This method addresses both the initial victims of the collapse and the secondary parties who have since taken on the risk by purchasing these debts.

Many recipients of FTX repayments are expected to reinvest their funds in cryptocurrencies, with some buying Bitcoin or Bitcoin ETFs and others investing in altcoins like Ethereum. However, it remains uncertain if these repayments will significantly impact Bitcoin's price, as BTC price failed to gain any significant buying demand. In recent hours, the price of BTC declined heavily, dropping from a high of $96,730 and aiming for a consolidation at around $94K.

The impact of these payments on the market is still unclear. Some experts think that some of the money might flow back into cryptocurrencies, enhancing liquidity. However, since the repayment plan targets creditors with smaller claims, it may not greatly influence market prices right away. Additionally, many recipients may choose more secure investments over re-entering a market that continues to be volatile.

Currently, Bitcoin is declining unexpectedly following the repayment. The RSI level has reached the selling zone at level 31, suggesting that Bitcoin might continue to trend downward. Buyers are now aiming for a retest of the $92K region to validate further trends. If Bitcoin rebounds above that zone, we might see a consolidation below $95K. On the other hand, a drop below $92K will send the BTC price toward $89K.