Trump’s Inauguration Sparks $1.2 Billion Crypto Windfall: Will Bitcoin’s Meteoric Rise Follow?

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FTX is preparing to disburse over $1.2 billion to creditors of the now-defunct cryptocurrency exchange. The distribution is set to commence following the inauguration of U.S. President-elect Donald Trump. The deadline for users to meet repayment requirements is January 20, after which repayments up to $50,000 may begin. Sunil, a notable FTX creditor and member of the FTX Customer Ad-Hoc Committee, indicated that the repayments would start once users fulfill these prerequisites.

The timing of the repayments coincides with Trump’s inauguration, sparking anticipation for increased regulatory clarity in the crypto sector and the potential passage of the Bitcoin Act, which aims to establish a Bitcoin reserve for the U.S. This development, coupled with capital influx from FTX repayments, could potentially invigorate the crypto market, with some predicting Bitcoin prices could exceed $200,000 by 2025.


FTX’s restructuring plan, approved in October 2024, outlines a method for reimbursing users based on cryptocurrency values at the time the exchange declared bankruptcy. However, this approach has garnered criticism due to notable increases in Bitcoin’s value since late 2022.

Investor reactions to repayments are expected to vary, with smaller investors likely to liquidate for financial security, while others may reinvest in the cryptocurrency market, depending on individual risk tolerance. Comparisons are being drawn to the Mt. Gox incident, where creditors opted to retain Bitcoin rather than selling, despite substantial appreciation in value since the exchange’s collapse.

Creditors who filed complete claims are projected to receive payments approximating $16 billion, marking a significant step in resolving the financial turmoil following FTX’s collapse and potentially reinforcing the market’s credibility.