{"id":461327,"date":"2024-09-21T17:39:58","date_gmt":"2024-09-21T17:39:58","guid":{"rendered":"https:\/\/www.crypto-news-flash.com\/?p=855273"},"modified":"2024-09-21T17:39:58","modified_gmt":"2024-09-21T17:39:58","slug":"ftx-to-redistribute-16b-to-creditors-in-q4-2024-crypto-market-awaits-liquidity-surge","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2024\/09\/21\/ftx-to-redistribute-16b-to-creditors-in-q4-2024-crypto-market-awaits-liquidity-surge\/","title":{"rendered":"FTX to Redistribute $16B to Creditors in Q4 2024\u2014Crypto Market Awaits Liquidity Surge"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.crypto-news-flash.com\/wp-content\/uploads\/2024\/04\/unnamed-2024-04-13T091421.739.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<ul>\n<li><strong>FTX is set to redistribute $16 billion to creditors in Q4 2024, which could significantly impact the crypto market by introducing a major liquidity influx.<\/strong><\/li>\n<li><strong>A 50 bps rate cut by the U.S. Federal Reserve and similar moves by other central banks have increased liquidity.<\/strong><\/li>\n<\/ul>\n<hr>\n<p><span>The bankruptcy estate of FTX will conduct a redistribution of $16 billion to creditors in the fourth quarter of 2024. This liquidity influx could have a major impact on the crypto market with huge liquidity flowing back into the market.<\/span><\/p>\n<p><span>Historically, Q4 is a time when fund managers assess portfolios, allocate new money to various assets, and rotate existing positions. With the $16 billion redistribution from FTX, this process could lead to significant market movements.&nbsp;<\/span><\/p>\n<p>On the other hand, FTX has also attracted SEC scrutiny for its previous plans to redistribute creditors on crypto, per the CNF <a href=\"https:\/\/www.crypto-news-flash.com\/ftx-under-sec-scrutiny-over-plans-to-repay-creditors-in-crypto-and-stablecoins\/\" target=\"_blank\" rel=\"noopener\">report<\/a>. However, FTX redistribution and liquidity pump are not the only factors that can trigger a crypto market rally.<\/p>\n<p><span>Many are anticipating a \u201cmarkup\u201d period, where asset prices rise due to new inflows and reallocations. In addition, after the Bitcoin Halving events, the fourth quarter has proven to be the most fruitful for BTC and other digital currencies.<\/span><\/p>\n<p><span>Moreover, several macroeconomic tailwinds are also supporting the crypto market. First, the U.S. Federal Reserve recently cut interest rates by 50 basis points (bps), the first reduction since the COVID-19 pandemic in 2020.<\/span><\/p>\n<p><span>In addition, Hong Kong\u2019s Monetary Authority followed suit, reducing rates by 0.5% to 5.25%, while Japan kept its rates unchanged at 0.25%. The rate cut moves have made borrowing cheaper, driving liquidity into markets like crypto.<\/span><\/p>\n<h3>Beyond FTX Redistribution \u2013 Q4 Fed Rate Cut Prediction<\/h3>\n<p><span>Additionally, the upcoming U.S. presidential election may bring economic stimulus and further interest rate cuts. Bank of America (BofA) Global Research has revised its forecast, expecting the U.S. Federal Reserve to cut interest rates by 75 bps in Q4 2024. Lower borrowing costs typically push investors toward riskier assets such as Bitcoin and Ethereum.<\/span><\/p>\n<p><span>Hence the fourth quarter could see a higher jump if the Federal Reserve cuts interest rates by 75 bps. The recent rate cuts have already had a noticeable impact on the crypto market. Bitcoin price is nearing the $64,000 mark, while Ethereum has jumped past $2,500. As <a href=\"https:\/\/www.crypto-news-flash.com\/ethereum-struggles-as-bitcoin-dominance-grows-whats-happening-now\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> by Crypto News Flash, Ethereum has struggled majorly in recent months, while the BTC market dominance has continued to grow.&nbsp;<\/span><\/p>\n<p><span>The expectation of more rate cuts in Q4 is fueling optimism among investors at the present time as well. The additional liquidity entering the market, combined with the lower cost of borrowing, is driving demand for cryptocurrencies.<\/span><\/p>\n<p><span>In addition, MicroStrategy announced the acquisition of $458.2 million worth of BTC on Friday, adding more liquidity and buying pressure per the CNF <a href=\"https:\/\/www.crypto-news-flash.com\/massive-7420-btc-purchase-microstrategys-bitcoin-bet-gets-bigger\/\" target=\"_blank\" rel=\"noopener\">report<\/a>. The consistent institutional influx from MicroStrategy, MARA, and spot Bitcoin ETFs could set the stage for a Q4 rally.<\/span><\/p>\n<div class=\"tve-leads-shortcode tve-leads-triggered tve-tl-anim tl-anim-instant tve-leads-track-shortcode_228374\">\n<div class=\"tl-style\" id=\"tve_tcb2_set-001\" data-state=\"50\" data-form-state>\n<div class=\"tve-leads-conversion-object\" data-tl-type=\"shortcode_228374\">\n<div class=\"tve_flt\">\n<div id=\"tve_editor\" class=\"tve_shortcode_editor\">\n<div class=\"thrv-leads-form-box tve_no_drag tve_no_icons thrv_wrapper tve_editor_main_content thrv-leads-in-content tve_empty_dropzone\" data-css=\"tve-u-185a09262cb\">\n<div class=\"thrv_wrapper thrv_text_element\">\n<p data-css=\"tve-u-185a09262d4\"><span data-css=\"tve-u-185a09262d5\">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; No spam, no lies, only insights. You can unsubscribe at any time.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.crypto-news-flash.com\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTX is set to redistribute $16 billion to creditors in Q4 2024, which could significantly impact the crypto market by introducing a major liquidity influx. A 50 bps rate cut by the U.S. Federal Reserve and similar moves by other central banks have increased liquidity. The bankruptcy estate of FTX will conduct a redistribution of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":461328,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[855,17147,21528,292,25],"class_list":{"0":"post-461327","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-other","8":"tag-bitcoin-halving","9":"tag-fed-rate-cut","10":"tag-ftx-redistribution","11":"tag-microstrategy","12":"tag-news"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/461327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=461327"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/461327\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/461328"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=461327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=461327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=461327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}