Adam Back, renowned ally of Bitcoin creator Satoshi Nakamoto, has made a bold prediction regarding the fate of the billions of dollars recovered from the FTX estate. Following filing for Chapter 11 bankruptcy, which saw the exchange collapse in November 2022, the company has now proposed a plan to distribute the majority of its assets to creditors and customers worldwide.
Gamza KhanzadaevWith the plan awaiting approval from the bankruptcy court, speculation is rife about how the recovered funds will be utilized. Adam Back weighed in on the conversation, suggesting that a significant portion, if not all, of the $15 billion could flow back into the cryptocurrency market - particularly BTC.
Back's sentiment stems from a belief that disgruntled investors, angered by FTX's sale of Bitcoin at a low price during its collapse, would eagerly reinvest their newfound assets into the cryptocurrency, driving up demand and potentially pushing the price even higher.
He went further to suggest that while some may diversify into other coins, the majority would likely flock back to Bitcoin, viewing it as a safer and more reliable investment option.
This prediction comes at a time when Bitcoin's price has surged from $15,600 at the end of 2022 to a staggering $74,000 as a new all-time high this year, highlighting the resurgence and potential for gains on the cryptocurrency market.
With the prospect of a multi-billion-dollar influx of funds, the community eagerly awaits the outcome of the FTX estate's distribution plan and the impact it could have on the market.
Tomiwabold Olajide
Dan Burgin
U.Today Editorial Team
Vladislav Sopov