Renowned supporter of the man who invented Bitcoin, Satoshi Nakamoto’s ally Adam Back, has made a daring forecast about what will happen to the billions of dollars that were taken from the FTX estate. The exchange collapsed in November 2022 as a result of the firm filing for Chapter 11 bankruptcy. Since then, the corporation has put forth a plan to divide up the majority of its assets to creditors and consumers worldwide.
Though the Bankruptcy Court has not yet approved the proposal, there is much conjecture as to what will be done with the recovered cash. Commenting on the discussion, Adam Back said that a large amount, if not all, of the $15 billion may return to the cryptocurrency market, specifically Bitcoin.
https://x.com/adam3us/status/1788121187744165970
Back’s opinion is based on the assumption that irate investors, enraged by FTX’s low-priced sale of Bitcoin during its collapse, would be ready to reinvest their newly acquired wealth into the cryptocurrency, increasing demand and perhaps raising the price even more.
He continued by saying that although some would diversify into other cryptocurrencies, most would probably return to Bitcoin since they saw it as a more dependable and safe financial alternative.
This forecast is made at a time when the price of Bitcoin has risen dramatically this year, hitting a new all-time high of $74,000, from $15,600 at the end of 2022, demonstrating the market’s potential for growth.
The community excitedly anticipates the conclusion of the FTX estate’s distribution plan and the potential market effect, given the possibility of a multibillion dollar inflow of assets.
