FTX Token Price: Why FTT Volume is up 450%?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless ups and downs, bubbles, and crashes. The FTX collapse was one such event that left a deep imprint on my mind and the minds of many investors. However, it’s always intriguing to see how markets can bounce back, even from the most devastating events.

Two years after the FTX crash, it remains a troubling event for many cryptocurrency investors, particularly those who suffered losses from their crypto holdings. However, as key figures involved in the collapse face repercussions, things seem to be stabilizing, and this has led to an upswing in the price of the FTX token. It’s worth noting that the FTT token price has skyrocketed by 12%, thanks to a significant spike in trading volume with a staggering 450% increase within the last 24 hours.

Why Did FTT Volume Hit $161.31M After 450%?

As I analyze the current situation, it’s clear that with Sam Bankman-Fried and Caroline Ellison beginning their imprisonment terms, FTX exchange finds itself under new leadership. Over the past two years, there has been a noticeable shift towards creditors’ interests, as the company is now primarily focused on rebuilding its reputation. However, an essential step precedes this endeavor: the formulation of a repayment plan to compensate the victims who have suffered losses.

Yesterday as a researcher, I learned that the FTX Debtors unveiled a $12B repayment plan under Chapter 11, set to take effect on January 3, 2025. To ensure seamless distribution of these funds, they have partnered with cryptocurrency exchange Kraken and digital custodian BitGo. Notably, the first round of creditor distributions is scheduled within 60 days following the effective date. This means that creditors can redeem their recognized holdings in either cash or stablecoins.

Today, FTX Debtors have officially scheduled the implementation date for their Restructuring Plan as January 3, 2025. This same date also marks the starting point for distributions to claimholders within the Plan’s designated convenient classes. For further details, please refer to the provided link: [Link]

— FTX (@FTX_Official) December 16, 2024

Following this announcement, a surge of funds flowed into the token. As a result, the trading volume for FTT reached an all-time high, skyrocketing by 450% over the course of just 24 hours. At present, the daily trading volume stands at approximately $161.35 million, significantly exceeding the average. Furthermore, the price of the FTX token also experienced a significant increase, providing hope to its holders that they might recoup their losses.

FTX Token Price Surged 12%, $20 Next?

On December 16th, the official FTX platform posted an update detailing their debt restructuring strategy. Simultaneously, the value of the FTX token skyrocketed from $2.5 to $3.1 in just one hour. Despite a subsequent correction, the FTT price has remained optimistic, triggering a significant recovery following its initial decline. Currently, it’s being traded at $2.97, reflecting a bullish trend as per the double-bottom pattern indicated earlier. Experts predict an astounding 550% increase in the FTT price, potentially reaching $20. This level was last observed before the FTX market crash. However, this scenario may only materialize if the market patterns continue to hold true.

Regardless, other crypto analysts, including Crypto Signals’s FTX price prediction, see a potential jump to $$3.5 before hitting the $4.79 on the extended target.

Bottom Line

Two years post the FTX collapse, events appear to be tilting in favor of creditors, as debtors have proposed a repayment strategy. This plan aims to disburse approximately $12B in cash or stablecoins, commencing on January 3, 2025. The positive news surrounding FTX has significantly boosted the FTX token price, rekindling investor interest and escalating the FTT trading volume. Yet, it’s worth noting that similar price surges have occurred in the past, particularly during the Bull’s reign and when Bitcoin reached its All-Time High (ATH). Thus, the longevity of this surge is questionable. However, the formation of a double bottom pattern suggests that the FTT price could potentially reach $20 if the pattern persists.

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2024-12-17 19:24