Late on Wednesday, Bitcoin’s value dropped to $61,500, a 2.5% drop. This was part of a bigger dip in the world of digital money. Big names in crypto, like Solana and Bitcoin Cash, also saw their values decrease by more than 7%. This shows it’s a tough time for these kinds of currencies.
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- Nearly $2 billion worth of altcoin tokens are expected to be released in the next ten weeks, potentially impacting market values.
- Over $11 billion worth of Bitcoin will be distributed to creditors of the Gemini Earn program and the defunct Mt. Gox exchange, adding to market pressures.
- Pending bankruptcy court approval, between $3-$5 billion could be reinjected into the crypto market from FTX bankruptcy repayments, offering some hope amid downturns.
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Cryptocurrency Markets Tumble as Billions in New Tokens Set to Hit the Market
More Tokens Coming Soon Could Make Things Tougher
The digital money market is already having a hard time, and it might get more challenging. A company that looks into crypto stuff, called 10x Research, thinks that in the next ten weeks, about $2 billion worth of new altcoin tokens will be released. This means more of these tokens will be available for people to buy. Before, these tokens were kept away and only given to certain people like the teams who made them, some organizations, and early investors. Big releases of Aptos, Starkware, and Sui tokens, among others, are coming. This could decrease their value because the people who already have them might decide to sell them to make some money.
Bitcoin Also Feeling the Pressure
It’s not just the altcoins feeling the squeeze; Bitcoin is, too. Around $11 billion of Bitcoin will be given out to people who were part of the Gemini Earn program and the old Mt. Gox exchange. This could make people even more worried and unsure about digital money. But there’s a bit of good news. Arthur Cheong from DeFiance Capital thinks that if the court says it’s okay, a large amount of money from the FTX bankruptcy might be given to its creditors. This could mean $3-$5 billion could come back into the digital money market.
How the Market’s Doing
The whole crypto market went down by 3.4% in the last 24 hours, according to the CoinDesk 20 Index. This bad day affected many, including Ether, Bitcoin Cash, and Solana.
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