The bankrupt cryptocurrency exchange FTX has started repaying creditors a total of $1.2 billion. These repayments have created selling pressure in the crypto market.

This week, the cryptocurrency market witnessed a significant development. The bankrupt cryptocurrency exchange FTX has begun repaying creditors a total of $1.2 billion.

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.

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

Nevertheless, while it is stated that Bitcoin has strong long-term growth potential and optimism persists that it could reach record levels by 2025. The restructuring plan for the bankrupt exchange was approved on January 3rd.