The bankrupt cryptocurrency exchange FTX has begun to make total repayments of $1.2 billion to creditors. These payments have created selling pressure in the crypto market.

This week saw a significant development in the cryptocurrency market. The bankrupt cryptocurrency exchange FTX has started making total repayments of $1.2 billion to creditors.

FTX plans to make a total of $17 billion in repayments. Initially, payments will be made to investors with debts of less than $50,000.

Payments to high-balance investors will start in the second quarter of 2025. Concerns have arisen that the repayments are based on the price of Bitcoin when it was trading around $20,000 in November 2022, potentially creating additional selling pressure in the market. Analysts have noted that some investors are selling in parallel with FTX’s repayments.

Nevertheless, while it is indicated that Bitcoin has a strong potential for long-term growth, optimism continues that it could reach record levels within 2025.

The restructuring plan for the failed exchange was approved on January 3rd.